Recordati S.p.a. · MIL:REC
Recordati — Recordati Industria Chimica e Farmaceutica — 9M 2024 Earnings Presentation
21 slides from Recordati's earnings presentation, Nov 8, 2024
Slide 1: First Nine Months 2024 Results
FIRST NINE MONTHS 2024 RESULTS Milan, November 8th 2024
Slide 2: Speakers
SPEAKERS Rob Koremans Luigi La Corte Chief Executive Officer Chief Financial Officer 2
Slide 3: Double-digit revenue and profit growth in first nine months
DOUBLE-DIGIT REVENUE AND PROFIT GROWTH IN FIRST NINE MONTHS • Continued strong momentum of the Group, with Net Revenue at € 1,743.1 million, +12.0% vs PY or +9.3% like-for-like1 at CER; adverse FX impact (€ 35.9 million or -2.3%) due to devaluation of TRY, particularly in Q1 and Q3, compensated by h
Slide 4: Acquisition of global rights for Enjaymo to further enhance global rare diseases business
ACQUISITION OF GLOBAL RIGHTS FOR ENJAYMO® TO FURTHER ENHANCE GLOBAL RARE DISEASES BUSINESS Acquisition of global rights to Enjaymo® from Sanofi, the only approved product for Cold Agglutinin Disease (CAD) Only approved targeted product (biologic) for CAD, a rare B-cell lymphoproliferative disorder L
Slide 5: Specialty & Primary Care: continued organic growth driven by urology, resilient cardio & gastro
SPECIALTY & PRIMARY CARE: CONTINUED ORGANIC GROWTH DRIVEN BY UROLOGY, RESILIENT CARDIO & GASTRO PORTFOLIOS Pharmaceutical Revenue 9M 2024 vs 9M 20231 million Euro Key highlights +11.1% • Growth +11.1% vs PY or +6.5% like-for-like2 at CER (+2.6% excl. Türkiye); promoted products continue to outperfor
Slide 6: Rare Diseases: Endocrinology and Oncology drive double-digit growth
RARE DISEASES: ENDOCRINOLOGY AND ONCOLOGY DRIVE DOUBLE- DIGIT GROWTH Revenue 9M 2024 vs 9M 2023 Key highlights million Euro +14.1% • Strong double-digit growth, +14.1% vs PY or +14.5% at CER, driven by continued momentum of key growth franchises Endocrinology and Oncology 605.6 • Endocrinology 530.7
Slide 7: Strong growth across all regions
STRONG GROWTH ACROSS ALL REGIONS (million euro) 9M 2024 9M 2023 Change % U.S.A. 284.4 234.1 21.5 Italy 254.4 229.0 11.1 Spain 160.6 113.3 41.8 France 132.9 135.6 (1.9) Germany 118.9 113.8 4.5 Russia, other CIS countries and Ukraine 108.1 103.9 4.1 Türkiye 97.7 79.1 23.5 Portugal 48.4 43.7 11.0 Other
Slide 8: Double-digit revenue growth sustaining EBITDA margin at 38%
DOUBLE-DIGIT REVENUE GROWTH SUSTAINING EBITDA MARGIN AT 38% (million Euro) 9M 2024 9M 2023 Change % Revenue 1,743.1 1,556.2 12.0 Gross Profit 1,186.9 1,065.7 11.4 as % of revenue 68.1% 68.5% 1 Adjusted Gross Profit 1,215.0 1,113.2 9.1 as % of revenue 69.7% 71.5% SG&A Expenses 470.7 439.1 7.2 as % of
Slide 9: Strong operating cash flow, FCF +10.8% vs. 9M 2023
STRONG OPERATING CASH FLOW, FCF +10.8% vs. 9M 2023 (million Euro) 9M 2024 9M 2023 Change EBITDA1 665.7 595.6 70.1 Movements in working capital (64.0) (75.4) 11.4 Changes in other assets & liabilities (12.0) (20.5) 8.5 Interest received/(paid) (60.3) (46.4) (13.9) Income tax paid (82.6) (53.3) (29.3)
Slide 10: Solid net financial position, leverage just <1.6x EBITDA
SOLID NET FINANCIAL POSITION, LEVERAGE JUST <1.6x EBITDA (million Euro) 30-Sep-24 31-Dec-23 Change Cash and cash equivalents 235.0 221.8 13.2 Short-term debts to banks and other lenders (22.4) (99.9) 77.5 Loans and leases - due within one year1 (268.4) (353.7) 85.4 Loans and leases - due after one y
Slide 11: Upgraded FY 2024 targets confirmed (excl. Enjaymo)
UPGRADED FY 2024 TARGETS CONFIRMED (EXCL. ENJAYMO®) FY 2023 FY 2024 Actual Targets As upgraded on July 30th Robust revenue growth across both business units Revenue • SPC confirmed to deliver mid-single digit 2,082.3 2,300 – 2,340 organic growth (at CER) yoy growth +12.4% • RRD delivering strong dou
Slide 12: Questions & Answers
QUESTIONS & ANSWERS
Slide 13: Appendix
APPENDIX
Slide 14: Composition of revenue
COMPOSITION OF REVENUE DIVERSIFIED PORTFOLIO AND FOOTPRINT Therapeutic Areas Geographic Total Revenue 9M 2024 Pharmaceutical Revenue 9M 2024 Rare Disease 34.7% Metabolic Specialty and Primary Care Endocrinology USA (incl. Chemicals) 65.3% 2.2% Oncology 2.9% Cardiovascular 5.7% 10.9% 5.7% 16.7% Urolo
Slide 15: 9M 2024 Cough & Cold - milder C&C season vs. 2023
9M 2024 COUGH & COLD – MILDER C&C SEASON VS. 2023 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 31.8 31.7 28.4 29.9 26.1 2019 23.8 23.6 22.8 2022 2023 2024 Q1 Q2 Q3 Q4 1) Includes RX and OTC products among others: Polydexa®, Hexasp
Slide 16: Main product sales
MAIN PRODUCT SALES (million Euro) 9M 2024 9M 2023 Change % Zanidip® (lercanidipine) and Zanipress® (lercanidipine+enalapril)1 143.7 148.3 (3.1) Eligard® (leuprorelin acetate) 91.9 82.3 11.7 Avodart® (dutasteride) and Combodart®/Duodart® 82.9 3.8 n.s. (dutasteride/tamsulosin)2 Seloken®/Seloken® ZOK/L
Slide 17: 9M 2024 results by operating segments
9M 2024 RESULTS BY OPERATING SEGMENTS Total Revenue 9M 2024 EBITDA1 9M 2024 Specialty and Specialty and Primary Care (incl. Primary Care (incl. Chemicals) Chemicals) 34.7% 38.0% Rare Diseases Rare Diseases 65.3% 62.0% Margin on Revenue: Rare Diseases: EBITDA1 41.8% Specialty and Primary care: EBITDA
Slide 18: Upcoming R&D pipeline milestones
UPCOMING R&D PIPELINE MILESTONES PROGRAM UPCOMING MILESTONE Osilodrostat ( ) • Cushing syndrome US FDA regulatory decision on sNDA expected mid-2025 ONGOING Pasireotide • Post-Bariatric Hypoglycaemia (PBH) Phase 2 enrollment completion by end 2024 / early 2025 PROGRAMS Dinutuximab beta • High Risk r
Slide 19: 9M 2024 results - adjusting items
9M 2024 RESULTS – ADJUSTING ITEMS Reconciliation of Net income to EBITDA1 (million Euro) 9M 2024 9M 2023 Change % Summary of key items Net Income 338.4 304.5 11.1 Income Taxes 103.4 85.2 Financial (income)/expenses, net 62.3 49.1 2 • FX losses of € 2.8 million in 9M 2024 vs € 0.3 million losses o/w
Slide 20: 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 21: Our purpose: Unlocking the full potential of life
Our purpose: Unlocking the full potential of life. ~ RECORDATI
Recordati Industria Chimica e Farmaceutica — 9M 2024 Earnings Presentation on 6ix