Recordati S.p.a. · MIL:REC
Recordati — Recordati Industria Chimica e Farmaceutica — Q1 2023 Earnings Presentation
19 slides from Recordati's earnings presentation, May 11, 2023
Slide 1: 2023 First Quarter Results
2023 FIRST QUARTER RESULTS Milano, May 11th 2023
Slide 2: Strong Start of the Year – FY 2023 Guidance Upgraded
STRONG START OF THE YEAR – FY 2023 GUIDANCE UPGRADED Q1 2023 HIGHLIGHTS • Overall Group Net Revenue at € 551.4 million, +31.5% vs PY or +21.0% like-for-like (1) at CER, with strong underlying momentum across both business units and all key markets: • SPC (ex. Chemicals) at € 361.8 million, +20.4% vs
Slide 3: Specialty and Primary Care Delivering Important Contribution to Growth
SPECIALTY AND PRIMARY CARE DELIVERING IMPORTANT CONTRIBUTION TO GROWTH Pharmaceutical Revenue (1) Q1 2023 vs Q1 2022 Key highlights million Euro • Strong double-digit growth in the quarter reflects solid + 20.4% underlying volume growth across all key markets and some phasing benefits, with exceptio
Slide 4: Q1 2023 Cough & Cold Significantly Above 2022 & Pre-Covid Levels
Q1 2023 COUGH & COLD SIGNIFICANTLY ABOVE 2022 & PRE-COVID LEVELS Cough & Cold (1) – Revenue trend by quarter 2019, 2022 and 2023 million Euro 47.3 39.6 35.0 35.5 32.9 28.4 29.9 22.8 23.8 2019 2022 2023 Q1 Q2 Q3 Q4 • Q1 2023 well-above pre-pandemic levels thanks to recovering trend from Q2 2022 • Exp
Slide 5: Rare Diseases – Strong Momentum in All Key Growth Drivers
RARE DISEASES – STRONG MOMENTUM IN ALL KEY GROWTH DRIVERS Revenue Q1 2023 vs Q1 2022 Key highlights million Euro • Endocrinology: continued strong uptake of Isturisa® in US + 20.9% and EU markets behind recent reimbursement and double- digit growth of Signifor® • Oncology: strong growth of both Qarz
Slide 6: All Regions Delivering Solid Growth
ALL REGIONS DELIVERING SOLID GROWTH COMPOSITION OF REVENUE BY GEOGRAPHY (million Euro) Q1 2023 Q1 2022 Change % Italy 80.5 74.7 7.8 U.S.A. 77.3 52.6 47.0 France 49.1 40.4 21.4 Germany 41.9 38.3 9.5 Spain 36.0 33.3 8.1 Portugal 15.6 12.3 26.9 Türkiye 33.1 14.7 125.0 Russia, other CIS countries and Uk
Slide 7: Q1 2023 P&L – High Operating Leverage Benefit on Margins
Q1 2023 P&L – HIGH OPERATING LEVERAGE BENEFIT ON MARGINS (million Euro) Q1 2023 Q1 2022 Change % Revenue 551.4 419.4 31.5 Gross Profit 387.7 303.9 27.6 as % of revenue 70.3 72.5 Adjusted Gross Profit(1) 398.9 303.9 31.3 as % of revenue 72.4 72.5 SG&A Expenses 150.4 121.7 23.6 as % of revenue 27.3 29
Slide 8: Q1 2023 Cash Flow – Absorbing Working Capital Increase
Q1 2023 CASH FLOW – ABSORBING WORKING CAPITAL INCREASE FROM HIGHER VOLUME OF BUSINESS (million Euro) Q1 2023 Q1 2022 Change EBITDA(1) 220.8 163.0 57.8 Movements in working capital (77.9) (28.4) (49.5) Changes in other assets & liabilities (10.3) (2.4) (7.9) Interest received/(paid) (16.4) (2.2) (14.
Slide 9: Solid Net Financial Position – Leverage at 1.8x LTM EBITDA
SOLID NET FINANCIAL POSITION – LEVERAGE AT 1.8x LTM EBITDA 31 MAR 2023 31 DEC 2022 Change (million Euro) Cash and cash equivalents 231.3 284.7 (53.4) Short-term debts to banks and other lenders (23.2) (83.4) 60.2 Loans and leases – due within one year(1) (291.3) (289.0) (2.3) Loans and leases – due
Slide 10: Updated 2023 Financial Projections
UPDATED 2023 FINANCIAL PROJECTIONS GUIDANCE RANGE INCREASED FOR BOTH TOP AND BOTTOM LINE FY 2022 FY 2023 Actual Old Target New Outlook Q2 – Q4 • SPC to deliver mid-single digit revenue growth Q2-Q4: o Unwind of Q1 one-offs phasing benefits Revenue 1,853.3 1,970 – 2,030 2,050 – 2,090 yoy growth % o M
Slide 11: Questions & Answers
QUESTIONS & ANSWERS
Slide 12: Appendix
APPENDIX
Slide 13: Quarterly Therapeutic Area Revenue
QUARTERLY THERAPEUTIC AREA REVENUE (million Euro) Q1 2023 Q1 2022 H1 2022 9M 2022 FY 2022 Specialty and Primary care (incl. Chemicals) 376.6 313.3 632.1 947.8 1,257.5 Specialty and Primary care (Pharmaceutical) 361.8 300.4 607.2 911.9 1,208.6 Cardiovascular 101.3 90.0 180.2 270.7 351.8 Urology 67.7
Slide 14: Corporate Products
CORPORATE PRODUCTS (million Euro) Q1 2023 Q1 2022 Change % Zanidip® and Zanipress® (lercanidipine+enalapril)(1) 56.8 43.3 31.4 Seloken®/Seloken® ZOK/Logimax® 24.4 24.0 1.4 (metoprolol/metoprolol+felodipine) Urorec® (silodosin) 18.8 14.6 28.5 Livazo® (pitavastatin) 12.8 12.1 5.9 Eligard® 28.5 23.9 18
Slide 15: Well-Diversified Revenue Base
WELL-DIVERSIFIED REVENUE BASE Therapeutic Areas Geographic Total Revenue Q1 2023 Pharmaceutical Revenue Q1 2023 Specialty and Primary Care (incl. Chemicals) 68.3% Rare Disease 31.7% 2.9% Italy 6.2% 1.9% Cardiovascular 8.6% Metabolic 13.0% 15.0% Urology 10.2% 8.1% USA Endocrinology Gastro & Intestina
Slide 16: First Quarter 2023 Results – Operating Segments
FIRST QUARTER 2023 RESULTS OPERATING SEGMENTS Total Revenue Q1 2023 EBITDA Q1 2023 Specialty and Primary Specialty and Primary Care (incl. Chemicals) Care (incl. Chemicals) Rare Diseases Rare Diseases 36.6% 31.7% 68.3% 63.4% Margin on Sales: Rare Diseases: EBITDA (1) 46.3% Specialty and Primary care
Slide 17: First Quarter 2023 Results – Adjusting Items
FIRST QUARTER 2023 RESULTS – ADJUSTING ITEMS Reconciliation of Net income to EBITDA (1) (million Euro) Q1 2023 Q1 2022 Change % Net income 124.0 96.7 28.2 Income taxes Financial (income)/expenses, net 36.0 12.6 27.6 6.9 Summary of key items o/w net FX (gains)/losses (2) (0.6) 1.6 o/w net monetary (g
Slide 18: Company Declarations, Disclaimers and Profile
COMPANY DECLARATIONS, DISCLAIMERS AND PROFILE DECLARATION BY THE MANAGER RESPONSIBLE FOR PREPARING THE COMPANY’S FINANCIAL REPORTS The manager responsible for preparing the company’s financial reports Luigi La Corte declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Fina
Slide 19: NS Recordati
NS RECORDATI
Recordati Industria Chimica e Farmaceutica — Q1 2023 Earnings Presentation on 6ix