Recordati S.p.a. · MIL:REC
Recordati — Recordati Industria Chimica e Farmaceutica — H1 2024 Earnings Presentation
20 slides from Recordati's earnings presentation, Jul 30, 2024
Slide 1: First Half 2024 Results
FIRST HALF 2024 RESULTS Milan, July 30th 2024
Slide 2: Speakers
SPEAKERS Rob Koremans Luigi La Corte Chief Executive Chief Financial Officer Officer 2
Slide 3: Strong momentum in H1 2024 across the business
STRONG MOMENTUM IN H1 2024 ACROSS THE BUSINESS • H1 2024 results show strong momentum of the Group, with Net Revenue at € 1,185.7 million, +13.5% vs PY or +10.2% like-for-like1 at CER; adverse FX impact in H1 2024 was € 22.2 million (-2.1%), easing in Q2 primarily due to TRY stabilization: o SPC at
Slide 4: Specialty & Primary Care: strong organic growth driven by urology
SPECIALTY & PRIMARY CARE: STRONG ORGANIC GROWTH DRIVEN BY UROLOGY, WITH RESILIENT CARDIO PORTFOLIO Pharmaceutical Revenue H1 2024 vs H1 20231 million Euro Key highlights +12.8% • Continued strong growth +12.8% vs PY or +7.6% like-for-like2 at 754.9 CER (+2.2% excl. Türkiye) vs robust H1 2023; promot
Slide 5: Rare Diseases: Onco and Endo franchises continue to show significant growth
RARE DISEASES: ONCO AND ENDO FRANCHISES CONTINUE TO SHOW SIGNIFICANT GROWTH AND FUTURE POTENTIAL Revenue H1 2024 vs H1 2023 Key highlights million Euro +15.9% • Double-digit growth in H1 2024, +15.9% vs PY as reported and at CER, driven by strong momentum of key growth franchises Endo and Onco • End
Slide 6: All regions delivering solid growth
ALL REGIONS DELIVERING SOLID GROWTH (million euro) H1 2024 H1 2023 Change % U.S.A 184.1 150.9 22.0 Italy 176.3 157.5 11.9 Spain 109.4 76.7 42.6 France 90.3 95.7 (5.6) Germany 81.4 78.0 4.3 Russia, other CIS countries and Ukraine 71.8 70.5 1.9 Türkiye 70.0 45.0 55.6 Portugal 32.6 29.6 10.2 Other C.E.
Slide 7: Continued double-digit growth of revenue and EBITDA
CONTINUED DOUBLE-DIGIT GROWTH OF REVENUE AND EBITDA (million Euro) H1 2024 H1 2023 Change % Revenue 1,185.7 1,044.3 13.5 Gross Profit 801.8 732.3 9.5 as % of revenue 67.6% 70.1% 1 Adjusted Gross Profit 828.8 753.2 10.0 as % of revenue 69.9% 72.1% SG&A Expenses 321.4 295.6 8.7 as % of revenue 27.1% 2
Slide 8: Strong operating cash flow offset by higher interest & tax payments
STRONG OPERATING CASH FLOW OFFSET BY HIGHER INTEREST & TAX PAYMENTS (million Euro) H1 2024 H1 2023 Change EBITDA1 452.9 406.2 46.7 Movements in working capital (73.6) (76.7) 3.1 Changes in other assets & liabilities (20.9) (5.4) (15.5) Interest received/(paid) (39.1) (26.3) (12.8) Income tax paid (5
Slide 9: Solid net financial position with leverage just below 1.8x
SOLID NET FINANCIAL POSITION WITH LEVERAGE JUST BELOW 1.8x LTM EBITDA (PRO-FORMA)3 (million Euro) 30-Jun-24 31-dic-23 Change Cash and cash equivalents 200.6 221.8 (21.2) Short-term debts to banks and other lenders (50.3) (99.9) 49.6 Loans and leases - due within one year1 (272.7) (353.7) 81.0 Loans
Slide 10: 2024 targets adjusted upward to reflect current performance
2024 TARGETS ADJUSTED UPWARD TO REFLECT CURRENT PERFORMANCE FY 2023 FY 2024 Actual Previous NEW Robust revenue across business units tracking slightly ahead of plan Revenue 2,082.3 2,260 – 2,320 2,300 – 2,340 yoy growth +12.4% • SPC confirmed to deliver mid-single digit organic growth (at CER), desp
Slide 11: Questions & Answers
QUESTIONS & ANSWERS
Slide 12: Appendix
APPENDIX
Slide 13: Composition of revenue
COMPOSITION OF REVENUE DIVERSIFIED PORTFOLIO AND FOOTPRINT Therapeutic Areas Geographic Total Revenue H1 2024 Pharmaceutical Revenue H1 2024 Rare Disease 33.7% Metabolic Specialty and Primary Care Endocrinology USA (incl. Chemicals) 66.3% 2.1% Oncology Cardiovascular 2.8% 14.5% 10.9% 6.1% 16.0% Urol
Slide 14: H1 2024 Cough & Cold trend normalizing
H1 2024 COUGH & COLD – TREND NORMALIZING AFTER STRONG PERFORMANCE OF LAST YEAR Cough & Cold1 – Revenue trend by quarter 2019, 2022, 2023 and 2024 million Euro 47.3 43.6 39.6 35.0 35.5 32.9 31.8 29.9 31.8 28.4 26.1 23.8 23.6 2019 22.8 2022 2023 2024 Q1 Q2 Q3 Q4 1) Includes RX and OTC products among o
Slide 15: Main products sales
MAIN PRODUCTS SALES (million Euro) H1 2024 H1 2023 Change % Zanidip® and Zanipress® (lercanidipine+enalapril)1 101.4 103.5 (2.1) Eligard® (leuprorelin acetate) 64.0 55.0 16.5 Avodart® (dutasteride) and Combodart®/Duodart® 57.3 - n.s. (dutasteride/tamsulosin)2 Seloken®/Seloken® ZOK/Logimax® 53.1 49.0
Slide 16: H1 2024 results by operating segments
H1 2024 RESULTS BY OPERATING SEGMENTS Total Revenue H1 2024 EBITDA1 H1 2024 Specialty and Specialty and Primary Care (incl. Primary Care (incl. Chemicals) Chemicals) Rare Diseases 33.7% 36.2% Rare Diseases 66.3% 63.8% Margin on Revenue: Rare Diseases: EBITDA1 41.0% Specialty and Primary care: EBITDA
Slide 17: Upcoming R&D pipeline milestones
UPCOMING R&D PIPELINE MILESTONES PROGRAM UPCOMING MILESTONE Osilodrostat ( ) • Cushing’s Syndrome US FDA regulatory decision on sNDA expected in mid-2025 Pasireotide • Post-Bariatric Hypoglycaemia (PBH) Phase 2 enrollment completion by end 2024 / early 2025 ONGOING PROGRAMS Dinutuximab beta • High R
Slide 18: H1 2024 results – adjusting items
H1 2024 RESULTS – ADJUSTING ITEMS Reconciliation of Net income to EBITDA1 (million Euro) H1 2024 H1 2023 Change % Summary of key items Net Income 225.4 227.6 (1.0) Income Taxes 66.4 61.3 Financial (income)/expenses, net 46.8 24.6 o/w net FX (gains)/losses 2 7.5 (4.7) • FX losses of € 7.5 million in
Slide 19: Company declarations, disclaimers and profile
COMPANY DECLARATIONS, DISCLAIMERS AND PROFILE Statements contained in this presentation, other than historical facts, are “forward-looking statements” (as such term is defined in the Private Securities Litigation Reform Act of 1995). These statements are based on currently available information, on
Slide 20: Unlocking the full potential of life
Unlocking the full potential of life. ~ RECORDATI
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