Chemical Works Of Gedeon Richter Plc · BET:RICHTER
Chemical Works Of Gedeon Richter — Gedeon Richter — Q3 2024 Earnings Presentation
37 slides from Chemical Works Of Gedeon Richter's earnings presentation, Nov 12, 2024
Slide 1: Gedeon Richter Q1-Q3 2024 Earnings Report
Gedeon Richter Q1-Q3 2024 Earnings Report 12 November 2024
Slide 2: Q1-Q3 2024 highlights – on track to deliver
Q1-Q3 2024 highlights – on track to deliver Q1-Q3 2024 CER revenue growth +12% Pharma Revenues (CER*) EUR 2.15-2.25bn (FX now a tailwind of +2.5ppt) guidance to grow „low-to-mid-teens”% Q1-Q3 2024 CER Clean EBIT growth +16% (EUR 537mn) 2024 original guidance still in place; new items to have come on
Slide 3: Financial and operational highlights
Financial and operational highlights Financial highlights • Pharma revenues grew by 15% to HUF 214bn in Q3 2024, bringing Q1-Q3 2024 pharma revenues to HUF 627bn (EUR 1.6bn), up 14.5% YoY • CER (ex-FX) revenue growth was 12% in Q1-Q3, within the FY 2024 guidance range; the weaker HUF provided some t
Slide 4: People & Culture – our DEI approach and the new Richter HQ
People & Culture – our DEI* approach and the new Richter HQ • The presence of diverse experience, knowledge, professional background, skills, opinions and thoughts enables us to elevate the standard of care in key therapeutic areas and address unmet needs in order to improve the quality of life of p
Slide 5: Financial Highlights
Financial Highlights G) =
Slide 6: Pharmaceutical revenues (ex-FX) rose by 12% in Q1-Q3 2024
Pharmaceutical revenues (ex-FX) rose by 12% in Q1-Q3 2024 Pharmaceutical Revenues, cumulative (HUF bn, EUR mn) Pharmaceutical Revenues by region (HUF bn) +14.5% +12.0% 98.7 Western Europe 114.7 Central Europe 111.8 626.9 613.0 1,602 Pharma other 131.3 547.4 GM Eastern Europe 122.9 130.1 BIO North Am
Slide 7: Double-digit growth in all segments, as GenMed further improves
Double-digit growth in all segments, as GenMed further improves WHC Revenues GM Revenues Key messages +13.1% +11.7% +10.6% +9.2% • WHC revenue growth reached 12% (ex-FX) in Q1-Q3 2024 YoY despite somewhat slower 217.1 214.3 186.2 183.8 dynamics in Q3. The timing of shipment (pre- 191.9 168.3 shipmen
Slide 8: Opex increased by 13% in Q1-Q3, including M&A-related expenses
Opex increased by 13% in Q1-Q3, including M&A-related expenses Operating costs as a % of Pharma revenues (%) Operating expenses (pharma) (HUFbn) 40 S&M 34 36 +13.3% 34 33 35 33 32 31 32 31 R&D 30 31 30 30 29 76.9 74.7 30 28 73.8 G&A 24 65.9 66.5 13.3 12.9 25 23 23 12.5 20 20 20 21 20 20 19 19 19 19
Slide 9: Clean EBIT (ex-FX) increased by 16% in Q1-Q3 2024
Clean EBIT (ex-FX) increased by 16% in Q1-Q3 2024 Pharmaceutical Clean EBIT, cumulative (HUF bn, EUR mn) Key messages +18.1% +16.0% • Clean EBIT (pharma) rose by 18% YoY in Q1-Q3 2024 to HUF 209bn, as earnings growth slowed somewhat in Q3 209.0 534.1 205.3 • FX remained a tailwind in Q3; FX-adjusted
Slide 10: Below-the-line: FX gains disappear, strong bottom line remains
Below-the-line: FX gains disappear, strong bottom line remains Net Profit in Q1-Q3 2024, below-Clean EBIT items (HUF bn) 209.2 Includes mostly inventory impairment (HUF 9bn) and Includes taxes calculated in line provisions (HUF 5bn) with Global Minimum Tax; some M&A-related deferred tax income 19.0
Slide 11: Strong FCF in Q3 partly offset earlier M&A-related outflows
Strong FCF in Q3 partly offset earlier M&A-related outflows Free Cash Flow in Q1-Q3 2024 (HUF bn) Key messages 219.0 o/w HUF 53bn in Q3 Application of Cash Flow • Free Cash Flow generation remained robust in Q3 at HUF 53bn, bringing Q1-Q3 30.4 188.5 11.9 2024 FCF to HUF 164bn, more than 36.4 164.1 3
Slide 12: Research and Development
Research and Development R&D 12 12
Slide 13: R&D pipeline – changes during Q3 2024
R&D R&D pipeline – changes during Q3 2024 Market Preclinical phase ** Clinical phase ** Regulatory & Launch Phase 1 Phase 2 Phase 3 Own Technology Development Clinical phase Neuropsychiatry Biotechnology Women’s Healthcare Own RSL* General Medicines new discontinued License * Ready-to-Sell Licensed
Slide 14: Major developments in R&D in Q3 2024
R&D Major developments in R&D in Q3 2024 • The integration of BCI Pharma and Estetra (Mithra R&D team) has progressed to the final stage to maximize synergies, WHC utilize talent and establish Richter’s own gynecological original preclinical research. Currently there are projects in mid- or late-pre
Slide 15: Neuropsychiatry
Neuropsychiatry CNS 15 15
Slide 16: CNS revenues and profits grow strong-double-digit rates
CNS CNS revenues and profits grow strong-double-digit rates CNS | HUF mn Q3 2023 Q3 2024 Ch. % YoY Q1-Q3 2023 Q1-Q3 2024 Ch. % Revenue (HUFbn) YoY Revenues 55 141 65 026 18 144 551 174 444 21 +20.7% +17.9% Cost of Sales -279 -320 15 -794 -1 102 39 Gross Profit 54 862 64 706 18 143 757 173 342 21 65.
Slide 17: Reagila revenues and Vraylar royalty rose by 20%+ in 2024 YTD
CNS Reagila revenues and Vraylar royalty rose by 20%+ in 2024 YTD Vraylar® Key messages +18.0% +20.2% • Royalty income from Vraylar® in Q3 2024 exceeded HUF 60bn, rising 18% YoY 61.7 163.9 58.3 52.3 49.4 52.8 136.3 • Cumulative Q1-Q3 2024 royalty income increased by 20% YoY 98.5 • AbbVie updated its
Slide 18: Women's Healthcare
Women’s Healthcare WHC 18 18
Slide 19: Solid sales and profitability growth despite slower Q3 dynamics
WHC Solid sales and profitability growth despite slower Q3 dynamics WHC | HUF mn Q3 2023 Q3 2024 Ch. % YoY Q1-Q3 2023 Q1-Q3 2024 Ch. % YoY Revenue (HUFbn) Revenues 62 195 67 607 9 191 933 217 126 13 Cost of Sales -19 865 -24 127 21 -60 195 -69 647 16 +13.1% +8.7% Gross Profit 42 330 43 480 3 131 738
Slide 20: EVRA strong and up YTD; Bemfola still faces supply chain challenges
WHC | EVRA strong and up YTD; Bemfola still faces Highlighted brands supply chain challenges Bemfola® Key messages -5.3% -18.8% • Bemfola® sales stabilized in Q3 2024 and 5.3 5.3 16.7 15.6 continued to face headwinds due to the 4.3 4.1 4.1 13.6 supply chain challenges in certain territories • Apart
Slide 21: Ryeqo and Drovelis keep very strong momentum
WHC Highlighted brands | Ryeqo and Drovelis keep very strong momentum Key messages Ryeqo® • Ryeqo® keeps strong momentum in Uterine +177.5% +153.0% Fibroids (UF) sales and adding on patients with Endometriosis indication in several 4.4 11.5 3.9 major EU markets 3.2 • 50,000 treated patients threshol
Slide 22: Biotechnology
Biotechnology BIO 22 22
Slide 23: Revenues are up 20%+ with narrower Clean EBIT losses
BIO Revenues are up 20%+ with narrower Clean EBIT losses BIO | HUF mn Q3 2023 Q3 2024 Ch. % YoY Q1-Q3 Q1-Q3 2024 Ch. % YoY Revenue (HUFbn) 2023 Revenues 11 502 14 203 23 32 807 40 724 24 +24.1% +23.5% Cost of Sales -7 606 -7 642 0 -20 502 -24 441 19 Gross Profit 3 896 6 561 68 12 305 16 283 32 15.1
Slide 24: Both CDMO and Terrosa revenues continued double-digit growth
BIO Both CDMO and Terrosa revenues continued double-digit growth Terrosa® Key messages +16.1% +22.7% • Terrosa® and partner teriparatide revenues increased significantly YoY 7.3 20.4 7.0 (+23% for the first three quarters) 6.3 6.1 5.8 14.9 16.6 driven by various factors: • Partner payments rose mate
Slide 25: General Medicines
General Medicines GM 25 25
Slide 26: Volume/mix, price and FX all supported revenues growth YTD
GM Volume/mix, price and FX all supported revenues growth YTD GM | HUF mn Q3 2023 Q3 2024 Ch. % YoY Q1-Q3 2023 Q1-Q3 2024 Ch. % YoY Revenue (HUFbn) Revenues 53 737 64 773 21 168 297 186 193 11 +20.5% +10.6% Cost of Sales -21 575 -32 772 52 -72 826 -87 289 20 Gross Profit 32 162 32 001 -1 95 471 98 9
Slide 27: Visible growth in Q1-Q3 2024 across all key TAs
GM Visible growth in Q1-Q3 2024 across all key TAs Total GenMed revenues by therapeutic areas (quarterly, HUF bn) Key messages +20.5% • Cardiovascular leadership: the cardiovascular segment 63 65 remains a foundational strength for GenMed, continuing to Other GenMed 59 58 7 drive robust performance
Slide 28: Appendix
Appendix 28 28
Slide 29: Unrealized FX gains disappeared by the end of Q3 2024
Unrealized FX gains disappeared by the end of Q3 2024 Q1-Q3 2024 Q1-Q3 2023 Q3 2024 Q3 2023 Diff Q3 Diff Q1-Q3 -0.6 -11.7 -20.8 14.8 -35.6 11.1 Unrealised exchange (loss)/gain 2.4 -26.7 1.2 -4.7 6.0 29.1 Realised exchange (loss)/gain -0.3 5.3 Result of realised & unrealised 0.1 -1.0 1.1 -5.6 forward
Slide 30: Business units' P&L in Q1-Q3 2024
Business units’ P&L in Q1-Q3 2024 Pharma Pharma Q1-Q3 2024 WHC CNS BIO GM Other Eliminations Group total other total Revenues 217.1 174.4 40.7 186.2 8.4 626.9 18.5 -9.0 636.4 Cost of Sales -69.6 -1.1 -24.4 -87.3 -8.7 -191.2 -14.4 8.8 -196.8 Gross Profit 147.5 173.3 16.3 98.9 -0.3 435.7 4.1 -0.2 439.
Slide 31: Strategic positioning and vision of the business units
Strategic positioning and vision of the business units Pharma | Pharmaceuticals segment Name of the Business Units Brief description Key strategic goal Therapeutic areas Leveraging our world class early phase R&D capability Maximize the potential of cariprazine, while developing in the central nervo
Slide 32: Consolidated Income Statement
Consolidated Income Statement 2023 Q1-Q3 2024 Q1-Q3 2023 Change Consolidated P&L HUFm HUFm HUFm % 805 158 Revenues 636 423 601 980 5.7% 199 304 of which royalty 168 927 139 683 20.9% (283 834) Cost of Sales (196 783) (210 654) -6.6% 521 324 Gross Profit 439 640 391 326 12.3% (146 047) Sales & market
Slide 33: Consolidated Balance Sheet - ASSETS
Consolidated Balance Sheet - ASSETS 30 Sep 2024 31 Dec 2023 Change Consolidated Balance Sheet HUFm HUFm % ASSETS 1 486 732 1 361 217 9.2% Non-current assets 914 862 826 304 10.7% Property, plant and equipment 368 292 347 394 6.0% Goodwill 73 884 31 903 131.6% Other intangible assets 259 368 230 383
Slide 34: Consolidated Balance Sheet - EQUITY AND LIABILITIES
Consolidated Balance Sheet - EQUITY AND LIABILITIES 30 Sep 2024 31 Dec 2023 Change Consolidated Balance Sheet HUFm HUFm % EQUITY AND LIABILITIES 1 486 732 1 361 217 9.2% Capital and reserves 1 227 898 1 142 581 7.5% Share capital 18 638 18 638 0.0% Treasury shares (36 954) (29 982) 23.3% Share premi
Slide 35: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Q1-Q3 2023 Dec 2023 Q1-Q3 2024 Change Consolidated cash flow adjusted HUFm HUFm HUFm % Operating activities 171 540 Profit before income tax 202 521 130 249 55.5% 50 808 Depreciation and amortisation 36 318 36 704 -1.1% 5 405 Non cash items 3 393 (1 330) -355.1% (11
Slide 36: Contacts and Financial calendar
Contacts Financial calendar Company name: Gedeon Richter Plc. | 12 November 2024 – Q1-Q3 2024 results Sector: Pharmaceutical | 28 February 2025 – preliminary FY2024 results Company address: 1103 Budapest, Gyömrői út 19-21., Hungary Telephone: +36 1 431 5764 Investor relations manager Róbert Réthy, C
Slide 37: Disclaimer
Disclaimer This presentation may contain forward-looking statements, that may include, but are not limited to, those regarding capital, investment, cash flows, demand, earnings, efficiency, production, profits. These forward-looking statements are subject to risks, uncertainties, and other factors,