Ibnsina Pharma · EGX:ISPH
Ibnsina Pharma — Q2 2023 Earnings Presentation
31 slides from Ibnsina Pharma's earnings presentation, 2023
Slide 1: Earnings Call
NA eae sharme XK ibnsinapharma Earnings Call
Slide 2: Report Content
Report Content Pharma Market Updates Strategic & Financial Performance S1, 2023 S1, 2023 2
Slide 3: Total Pharma Market Growth: QoQ 20-21-22-23
Market Value Total Pharma Market Growth: QoQ 20-21-22-23 S1 22 vs S1 23 Exchange Rate pressure EDA to increase Prices resulting in a double digit growth in market value 19% 45.7 45.0 43.2 42.5 41.5 40.0 39.4 36.7 36.7 36.1 35.0 33.6 32.7 32.7 30.0 29.8 29.6 27.7 25.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 4: Pharma Market: Growth Drivers
Units Sold ASP Pharma Market: Growth Drivers S1 22 vs S1 23 S1 22 vs S1 23 Growth leveraged by “Average Selling Price” growth compensating decline in “Units sold” 7.6% 29% 1,023 948 958 949 927 905 900 893 877 887 847 836 824 809 55 51 46 44 41 41 38 39 37 37 35 35 34 33 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 5: ISP Strategy 2023-2024: 1st Semester's Highlights
ISP Strategy 2023-2024: 1st Semester’s Highlights Key highlights on semester’s results Sustainable Growth Differentiation Collaterals OPEX (Held for Sale) Optimization Ibnsina Pharma’s 1st Semester’s Strategic Pillars Highlights Working Investment Capital & Debt Diversification Optimization Digitali
Slide 6: ISP Strategy 2023-2024: 1st Semester's Highlights
ISP Strategy 2023-2024: 1st Semester’s Highlights Key highlights on semester’s results 24% 43% 54% 111% 49% Market leader Growth in Growth in Growth in Growth in position for all Net Profit Despite Revenue Gross Profit EBITDA Challenges segments for S1 (15bn) (1.2bn) (631mn) (132mn) 100% 3 100% 0 1.
Slide 7: ISP Strategy 2023-2024: 1st Semester's Highlights
ISP Strategy 2023-2024: 1st Semester’s Highlights Key highlights on semester’s results 24% 43% 54% 111% 49% Market leader Growth in Growth in Growth in Growth in position for all Net Profit Despite Revenue Gross Profit EBITDA segments for S1 Challenges (15bn) (1.2bn) (631mn) (132mn) 100% 2 100% 0 1.
Slide 8: ISP Strategy 2023-2024: 1st Semester's Highlights
ISP Strategy 2023-2024: 1st Semester’s Highlights Key highlights on semester’s results 24% 43% 54% 111% 49% Market leader Growth in Growth in Growth in Growth in position for all Net Profit Despite Revenue Gross Profit EBITDA Challenges segments for S1 (15bn) (1.2bn) (631mn) (132mn) 100% 2 100% 0 1.
Slide 9: ISP Strategy 2023-2024: 1st Semester's Highlights
ISP Strategy 2023-2024: 1st Semester’s Highlights Key highlights on semester’s results 24% 43% 54% 111% 49% Market leader Growth in Growth in Growth in Growth in position for all Net Profit Despite Revenue Gross Profit EBITDA segments for S1 Challenges (15bn) (1.2bn) (631mn) (132mn) 100% 2 100% 0 1.
Slide 10: ISP Strategy 2023-2024: 1st Semester's Highlights
ISP Strategy 2023-2024: 1st Semester’s Highlights Key highlights on semester’s results 24% 43% 54% 111% 49% Market leader Record Record Growth in Exponential position for all Growth in Growth in Net Profit Despite Growth in segments for S1 Gross Profit EBITDA Challenges Revenue (1.2bn) (631mn) (132m
Slide 11: Sustainable Growth through Differentiation
ISP Strategy 2023-2024: 1st Semester’s Highlights Key highlights on semester’s results Sustainable Growth Differentiation Collaterals OPEX (Held for Sale) Optimization Ibnsina Pharma’s Sustainable Growth Strategic Pillars through Differentiation Working Investment Capital & Debt Diversification Opti
Slide 12: Market Share: Total Market Value Performance
Market Structure – Q2 2023 Market Share: Total Market Value Performance Pharmacies Hospitals Wholesale Ibnsina Pharma continues its successful run in retaining leadership position 51% 33% 16% among competitors despite challenges. Market Share Market Share ISPH vs Market ISPH vs Market S1, 2022 vs S1
Slide 13: Revenue: Exceptional Growth
Revenue Growth Revenue: Exceptional Growth S1 22 vs S1 23 Ibnsina Pharma continues its exponential growth, crossing 15bn mark for first time, S1 revenue; with staggering growth rate of 43% against S2 2022. 43% 9 100% 8.0 8 New Suppliers 80% 7.0 7 6.6 6.1 58% 60% 6 5.8 5.7 5.5 5.5 4.9 5.1 40% 5 28% 4
Slide 14: Revenue Analysis: Growth Across All Business Units
Revenue Growth Revenue Analysis: Growth Across All Business Units S1 22 vs S1 23 Addressing customer segments individually, modifying internal capacity to cater segment’s needs & potential 43% 8.0 Segments SoS Growth 7.0 6.6 Retail 6.1 5.8 5.7 23% 5.5 5.5 3.68 5.1 4.9 3.32 3.32 Wholesale 3.24 2.99 3
Slide 15: Revenue Analysis: Other Revenues
Revenue Growth Revenue Analysis: Other Revenues S1 22 vs S1 23 Ibnsina Pharma achieves exponential growth across all other business lines; further solidifying its financial position and sustainable business model. 137% 80 50 45 70 SoS Growth 67 40 Warehousing 60 35 33.7 103% 50 30 Transportation 40
Slide 16: Market Anatomy: Segments Performance
Market Anatomy: Segments Performance Ibnsina Pharma growth is in line with market dynamics, growing wholesale segment 92% in Q2, 2023 Market Anatomy – Segments’ Contribution ISP Segment Contribution to Total Revenue 2020 – 2023 (S1) 2020 – 2023 (S1) - (Market Data) 2023 2022 2023 31% 2021 28% 33% 20
Slide 17: Sustainable Growth: Gross Profit Optimization
Gross Profit Growth Sustainable Growth: Gross Profit Optimization S1 22 vs S1 23 Ibnsina Pharma breaks the 1bn barrier in GP for the first time in S1, 2023 with a growth rate of 8.1%, driven by high Cash Discount Taken and low Cash Discount Given! 54% Gross Profit Optimization (Semester 1, 2022 vs 2
Slide 18: Operational Expenses Optimization
ISP Strategy 2023-2024: 1st Semester’s Highlights Key highlights on semester’s results Sustainable Growth Differentiation Collaterals OPEX (Held for Sale) Optimization Ibnsina Pharma’s Operational Strategic Pillars Expenses Optimization Working Investment Capital & Debt Diversification Optimization
Slide 19: Operational Productivity: Optimization
Operational Productivity: Optimization 34% Revenue/FTE – 43% Revenue/Site - 44% Revenue/Vehicle reflecting positively on EBITDA 7421 65 821 Optimization per FTE | Site | Vehicle 20 250 50% 2.550% 40% 44% 43% 18 45% 45% 35% 34% 16 200 40% 2.040% 30% 14 35% 35% 25% 12 150 30% 1.530% 10 25% 25% 20% 18
Slide 20: Opex Optimization
Opex Optimization: Optimization New lowest Opex from Sales recorded in Q2 2023 reflected on highest EBITDA margin reported in Q2 the past 3 years OPEX vs EBITDA (% of Sales – QOQ – Stand alone Figures) 6.0% 5.0% 4.9% 4.5% 4.3% 4.0% 4.1% 4.0% 4.0% 4.0% 3.7% 3.5% 3.6% 3.4% 3.2% 3.1% 3.0% 3.0% 2.7% 2.6
Slide 21: Financial Performance
ISP Strategy 2023-2024: 1st Semester’s Highlights Key highlights on semester’s results Sustainable Growth Differentiation Collaterals OPEX (Held for Sale) Optimization Ibnsina Pharma’s Financial Strategic Pillars Performance Working Investment Capital & Debt Diversification Optimization Digitalizati
Slide 22: Income Statement: S1-23 vs S1-22 (Actual)
Income Statement: S1- 23 vs S1-22 (Actual) 22% growth in NP driven by “Revenues and “Margins” growth despite “Interest Rate” hike effect on Financial Expenses Gross Sales Gross Profit OEPX EBITDA 43% 54% 20% 3.5% EBITDA 111% Margin 8.1% Margin 4.3% Margin 7.5% Margin 15,092 552 1,183 4.2% 2.9% 631 1
Slide 23: ISPH Strategy 2023-2024: Digitalization
ISPH Strategy 2023-2024: ISP Strategy Investment Diversification Sustainable Growth Differentiation Collaterals OPEX (Held for Sale) Optimization Ibnsina Pharma’s Strategic Pillars Digitalization Working Investment Capital & Debt Diversification Optimization Digitalization 23
Slide 24: Digitalization: Digital Portfolio
Digitalization: Digital Portfolio Ibnsina builds digital capability to further secure sustainability, streamline processes, strengthen ties with customers and suppliers, through a variety of digital solutions ISP’s Digital Portfolio Pharmacy Infor ERP B2B App Supplier Field Supplier TMS Management F
Slide 25: Working Capital & Debt Optimization
ISP Strategy 2023-2024: 1st Semester’s Highlights Key highlights on semester’s results Sustainable Growth Differentiation Collaterals OPEX (Held for Sale) Optimization Ibnsina Pharma’s Working Capital & Strategic Pillars Debt Optimization Working Investment Capital & Debt Diversification Optimizatio
Slide 26: Working Capital Optimization
Working Capital Optimization: Exceptional Q1 Relative Performance Achieving the lowest ever days of cash conversion at “Zero” in S1, 2023 with a reduction of 9.4 days compared to S1, 2022. 9.4 CCC CCC CCC CCC CCC CCC 12.5 Days 9.4 Days 8.7 Days 3.7 Days 2.3 Days 0 Days 41 40 40 39 39 38 129 127 127
Slide 27: Net Debt Optimization
Net Debt Optimization: Net debt decreased 2% YoY despite 43% Revenue Growth Net Finance Bearing Debt to Equity at last 3 quarters levels despite recent Equity multiple adjustments & Revenue growth Net Debt (mn) 3,597 3,805 3,241 3,852 3,526 -2% SoS Change Equity (mn) 1.376 1.246 1.260 1.332 1.368 -0
Slide 28: Cash Flow Statement: S1, 2023 Financial Figures
Cash Flow Statement: S1, 2023 Financial Figures 300mn enhancement in cash flow from operations QoQ; leveraged by extended supplier payment Cash Flow Statement 28
Slide 29: Investment Diversification
ISPH Strategy 2023-2024: ISP Strategy Investment Diversification Sustainable Growth Differentiation Collaterals OPEX (Held for Sale) Optimization Ibnsina Pharma’s Investment Strategic Pillars Diversification Working Investment Capital & Debt Diversification Optimization Digitalization 29
Slide 30: Investment Diversification: New Business Lines
Investment Diversification: New Business Lines Ibnsina follows a strategic path to diversify portfolio; introducing 2 new business lines with great prospects and very high synergy with ISP’s core business Non-pharmaceutical Distribution Medical Promotion (Scientific Office Outsourcing) Overview on B
Slide 31: ibnsinapharma
ibnsinapharma