Macro Group Pharmaceutical S.a.e. · EGX:MCRO
Macro Group Pharmaceutical S.a.e — 9M 2022 Earnings Presentation
22 slides from Macro Group Pharmaceutical S.a.e's earnings presentation, November 2022
Slide 1: Investor Relations Presentation 9M 2022
Investor Relations Presentation 9M 2022
Slide 2: Agenda
Agenda 1 Company Overview 2 9M22 Financial & Operational Performance 3 Appendix
Slide 3: Company Overview
Company Overview
Slide 4: 20 years' presence in Egypt's fast-growing cosmeceutical space
20 years’ presence in Egypt’s fast-growing cosmeceutical space Key Corporate Milestones Inception Development Phase Institutionalization Value Creation Next Growth Phase Founded by Dr. El Gradual shift towards Launch of 3 new Launch of 2 new Launch of e-commerce platform to drive direct to Nayeb and
Slide 5: Bridging the Gap Between Cosmetics and Pharmaceuticals
Bridging the Gap Between Cosmetics and Pharmaceuticals Cosmeceuticals, cosmetic products with active ingredients, bridging the gap between over-the-counter cosmetics and prescription-based drugs COSMETICS COSMECEUTICALS PHARMACEUTICALS Cosmetics are products that are rubbed, poured, sprinkled Offeri
Slide 6: Leading player in Egypt's cosmeceuticals industry
Leading player in Egypt’s cosmeceuticals industry The leading and one of the Attractive portfolio of 138 fastest-growing cosmeceutical SKUs across a variety of Established in 2005, Macro Group is Most of its products manufactured in-house companies in Egypt therapeutic areas principally engaged in t
Slide 7: Operating across a variety of high-growth therapeutic areas
Operating across a variety of high-growth therapeutic areas Macro Group boasts a highly attractive portfolio of market leading brands across its different subsegments FY21(1) Market Positioning Therapeutic Areas Female Intimate Skin Care Hair Care Anti-Scar Oral Care Antiseptics Analgesics Nutraceut
Slide 8: Supported by extensive & robust sales capabilities
Supported by extensive & robust sales capabilities… MACRO Advantage An Innovative Market Research and Concept Development Approach, Closing the Customers, Doctors and Pharmacies Feedback Loop Doctors Recommend Express Need Products Highly-incentivized salesforce Provide Feedback Customers Sales Team
Slide 9: An efficient distribution platform with wide coverage
…and an efficient distribution platform with wide coverage The promotion team is complemented by its recently expanded and highly capable and incentivized distribution team, which provides market penetration and national-level coverage across all channels Distribution Team Coverage Distribution Chan
Slide 10: Well-Invested Production Facility with Capacity for Growth
Well-Invested Production Facility with Capacity for Growth Macro produces most of its portfolio at its modern, well-invested manufacturing facility with top-of-the line equipment and ample capacity for significant growth Key Machinery 3rd Industrial Zone in Liquids Creams Soap Badr City, Cairo Semi-
Slide 11: Solid track record in launching new products
Solid track record in launching new products Macro Group has introduced 88 new products between 2017 and 2021, which cumulatively generated revenues of EGP 157 million by 2021, representing a 26% contribution to total revenues for the year and an exceptional 2017-21 CAGR of 86% 88 products EGP 157.4
Slide 12: Financial & Operational Performance
9M22 | Financial & Operational Performance
Slide 13: 9M22 Year in Review
9M22 | Year in Review Macro has recorded a robust growth in both its financial and operational performance, with revenues up by 25% YoY in 9M22, driven by increasing average pricing and volumes, which trickled down to bottom-line expansion of 21% YoY New Launches Premium Brands Cost Controls Exports
Slide 14: Top-Selling Brands in 9M22
Top-Selling Brands in 9M22 Female Intimate Topical Muscle Oral Care Skin Care Anti-Scar Skin Care Skin Care Skin Care Skin Care Antiseptic Care Relaxant 14 SKUs 2 SKUs 4 SKUs 6 SKUs 3 SKUs 5 SKUs 5 SKUs 5 SKUs 3 SKUs 4 SKUs 10% 9% 8% 8% 5% 5% 5% 3% 3% 3% 53.9 47.6 44.2 41.1 27.9 26.3 26.2 16.2 15.0
Slide 15: Sales Breakdown & Analysis
9M22 | Sales Breakdown & Analysis Revenue Analysis by Therapeutic Area Volume & Revenue by Therapeutic Area | 1H22 ◼ 9M21 ◼ 9M22 YoY Growth ◼ Skin Care Volumes Revenues 33.2% 29.4% 2.3% 18.9% 41.1% 31.7% 0.9% -53.4% 0.2% 0.2% ◼ Female Care 221.0 6% ◼ Hair Care 5% 3% 4% 165.9 10% ◼ Anti-scars 13% 42%
Slide 16: Income Statement Highlights
9M22 | Income Statement Highlights 9M22 Highlights Revenues Revenue Revenueby by Channel Channel || 9M22 FY21 Volume Sold • Macro’s total revenues recorded EGP 520.3 mn in 9M22, climbing 25% YoY, (EGP mn) (EGP mn / % contribution) (mn units) driven by a 23% YoY increase in average pricing due to the
Slide 17: Balance Sheet Highlights
9M22 | Balance Sheet Highlights Net Working Capital Total Debt Net Debt/EBITDA CAPEX (EGP mn / % change) (EGP mn / % change) (% change) (EGP mn / % change) 473.4 1.0% 0.8% 30% 83% 133.9 +0.2x 0.3x 1% 365.3 4.1 4.0 73.2 0.1x FY21 9M22 FY21 9M22 FY21 9M22 FY21 9M22 % of Sales Net Working Capital Total
Slide 18: Working Capital Analysis
9M22 | Working Capital Analysis Cash Conversion Cycle | CCC Cash Conversion Cycle (CCC) 89 days 17 days 62 days • MACRO’s CCC recorded 157 days in 9M22, down by 62 days YoY, and driven 219 solely by increasing payables DPO by 143 days during the same period. The 129 146 157 effect of higher paya
Slide 19: Appendix
OY QO Appendix
Slide 20: Consolidated Income Statement
9M22 | Consolidated Income Statement 9M-2021 9M-2022 % CHG Consolidated Income Statement | EGP Actual Actual Y-o-Y Sales Revenue 417,142,787 520,300,824 24.7% COGS (82,204,589) (118,471,740) 44.1% Gross Profit 334,938,198 401,829,084 20.0% Gross profit margin 80.3% 77.2% -3.1 pps G&A Expenses (51,18
Slide 21: Consolidated Balance Sheet
9M22 | Consolidated Balance Sheet % CHG Consolidated Balance Sheet | EGP 31-Dec-21 30-Sep-22 Y-t-D Inventories 65,616,582 114,561,004 74.6% Trade and notes receivables 337,895,974 415,732,735 23.0% Prepayments & other debit balances 12,230,850 52,990,683 333.3% Cash & cash equivalents 60,322,683 60,
Slide 22: Consolidated Cash Flow Statement
9M22 | Consolidated Cash Flow Statement % CHG % CHG Consolidated Cash Flow Statement | EGP 9M21 9M22 (Continued) 9M21 9M22 Y-o-Y Y-o-Y Cash flows from operating activities Cash flows from investing activities Profit for the year before income tax 141,557,863 168,426,842 19.0% Payments to purchase of
Macro Group Pharmaceutical S.a.e. — 9M 2022 Earnings Presentation on 6ix