Chemical Works Of Gedeon Richter Plc · BET:RICHTER
Chemical Works Of Gedeon Richter — Gedeon Richter — Q3 2023 Earnings Presentation
31 slides from Chemical Works Of Gedeon Richter's earnings presentation, Nov 8, 2023
Slide 1: Gedeon Richter Earnings Report M9
Gedeon Richter Earnings Report M9 Chief Executive Officer presentation November 8th, 2023
Slide 2: Financial Highlights
Financial Highlights 122.5 HUFbn 661 HUF 1.6 HUFbn Net Profit1 EPS Free Cash-flow -37.5% -37.2% -88.7 HUFbn 144.4 HUFbn 176.2 HUFbn 7.6% EBIT2 Clean EBIT3 Return on Equity4 -6.4% +13.2% -14.4%p 602.0 HUFbn 65.0% 547.4 HUFbn Consolidated sales Gross margin Pharma sales +4.0% +6.8%p +15.7% 1Profit for
Slide 3: Favourable trends continued into the third quarter
• Favourable trends continued into the third quarter with strong demand for our products and Vraylar® benefitting from a massive increase in uptake due to the inclusion of aMDD in the label. • Our operations teams in all of our sites have been able to cope with higher-than-expected orders despite a
Slide 4: Strong financial performance in core operations despite adverse external effects
Strong financial performance in core operations despite adverse external effects Guidance • With Vraylar impact, overall performance is expected to be above initial guidance. EBIT • Year-on-year EBIT decreased slightly as a result of prior year’s CNS milestone income and current year’s Windfall tax.
Slide 5: Very strong internal performance: production increased and double digit growth in all four BUs
Very strong internal performance: production increased and we reached double digit growth of own sales in all four BUs WHC Revenues GenMed Revenues • WHC grew in all regions, Relugolix grew significantly in WEU and CEU countries, while 204.5 EVRA is a major success Mexico. 191.9 183.8 165.8 +23.3% 1
Slide 6: Special items affecting M9 consolidated financials
Special items affecting M9 consolidated financials Windfall tax Reallocation of G&A overheads Windfall tax • Relevant accounting standards specifically Sales & Marketing prohibit to record the prorated amount of the estimated annual windfall tax (IFRIC 21). • Actual income of the period indicates a
Slide 7: Worsening FX environment resulted in major FX losses
Worsening FX environment at the end of the period resulted major FX losses that were partly off-set by hedging transactions and gains from divestment Consolidated 2022 H1 2023 H1 2022 M9 2023 M9 Unrealised exchange (loss)/gain 33.5 -26.5 36.7 -11.7 Realised exchange (loss)/gain 9.3 -22.0 27.9 -26.7
Slide 8: FCF position improved compared to previous quarter
FCF position improved compared to previous quarter while stockpiling effect resulted in higher cash conversion time Free Cash-flow | HUFbn Tangible & Intangible | HUFbn -88.7 CAPEX of tangible assets +49.6 90.3 Acquisition of intangible assets +12.5 93.2 29.4 +20.9 24.2 45.5 41.8 9.2 11.3 32.0 43.6
Slide 9: Record high M9 clean EBIT but lower Net Profits due to financial losses
Record high M9 clean EBIT but lower Net Profits due to financial losses 602.0 Other 54.5 -48.5 -162.2 391.3 -210.7 Pharma 547.4 -110.1 -37.6 0.6 176.2 -59.3 -8.8 Revenues Cost of Sales Gross Profit S&M G&A R&D Clawback Milestone income Clean EBIT % of revenue, 2023 M9 > 65.0% 18.3% 6.2% 9.9% 29.3% %
Slide 10: Clean EBIT increase of 24.4% (without FX) compared to M9 2022
Clean EBIT increase of 24.4% (without FX) compared to M9 2022 EBIT (year-on-year) Clean EBIT (year-on-year) +13.2% 193.5 -6.4% 160.9 154.3 176.2 +4.3% +24.4% 144.4 155.6 2022 M9 2023 M9 2023 M9 w/o FX effect 2022 M9 2023 M9 2023 M9 w/o FX effect All data in HUFbn 10
Slide 11: Pharma Financial Highlights
Pharma Financial Highlights 11
Slide 12: Pharma revenues grew above 20%, FX effects turn negative in Q3
Pharma revenues grew above 20%, foreign exchange effects turn into negative in Q3 FX impact by currencies +15.7% 2023 M9 Other -1.0 USD -1.7 29.2 -6.2% CNY -1.8 547.4 EUR -1.9 RUB -22.8 Change of RUBHUF 103.5 +21.9% 8.0 7.5 7.0 6.5 6.0 5.5 5.0 4.5 473.1 4.0 3.5 3.0 2022 M9 Core business FX effect 20
Slide 13: Combined S&M and G&A change is on par with Gross Profit increase
Combined S&M and G&A change is on par with Gross Profit increase, R&D growing according to the plans Gross profit Sales & Marketing Research & Development +17.3% +6.2% 112.5 +24.4% 60.3 +8.0% 106.1 55.8 59.3 90.5 +17.7% +25.8% 411.7 385.3 327.2 2022 M9 2023 M9 2023 M9 w/o 2022 M9 2023 M9 2023 M9 w/o
Slide 14: Women's Healthcare and General Medicines profit contribution over 70 HUFbn
Women’s Healthcare and General Medicines profit contribution over 70 HUFbn Pharma 2023 M9 WHC CNS BIO GM Pharma Other Eliminations Group total other Revenues 191.9 144.6 32.8 168.3 9.9 547.4 64.9 -10.3 602.0 Cost of Sales -60.2 -0.8 -20.5 -72.8 -7.9 -162.2 -58.8 10.3 -210.7 Gross Profit 131.7 143.8
Slide 15: No changes in global coverage, negative FX effect largest in Eastern Europe
No changes in our global coverage, negative FX environment had the largest effect in Eastern Europe Neuropsychiatry | Revenue Women’s Healthcare | Revenue 136.3 2022 M9 69.9 71.3 136.0 2023 M9 58.2 98.5 52.7 2023 M9 w/o FX 41.6 43.7 3.4 3.4 2.6 2.6 2.5 27.0 24.0 26.9 18.1 1.6 1.2 1.4 11.8 15.8 20.0
Slide 16: Women's Healthcare: volume growth offset by FX and one-off costs
Women’s Healthcare| Despite having volume growth FX effect and one-off costs of efficiency programs decreased profitability Clean EBIT Gross profit +8.3% -16.1% -52.0% 39.2 121.7 131.7 32.9 -6.7% 16.5 45.4 42.3 7.9 2022 Q3 2023 Q3 2022 M9 2023 M9 2022 Q3 2023 Q3 2022 M9 2023 M9 Revenue Sales & Marke
Slide 17: WHC Highlighted brands: EVRA and Bemfola
WHC | Highlighted brands | EVRA MAH transfers almost complete; Bemfola is stronger in Europe but slows down in APAC region Bemfola® Key messages +6.7% • Bemfola®, flagship of Fertility portfolio is -2.7% +7.8% 15.6 16.7 16.9 performing better than expected in major 4.5 4.3 WEU markets. • Bemfola® sh
Slide 18: WHC Highlighted brands: New products market uptake continues
WHC | Highlighted brands | New products market uptake continues Ryeqo® Key messages • Ryeqo® solid start after receiving +231.8% reimbursement in two major European markets +215.3% 4.3 +241.1% 4.1 (Italy and Spain). 1.7 • Newly reimbursement markets in Europe are Czech republic and Portugal. 1.2 0.5
Slide 19: Neuropsychiatry: Steady growth in royalty compensated for prior year's milestone income
Neuropsychiatry | Steady growth in royalty compensated for prior year’s one-off milestone income Clean EBIT Gross profit +29.6% +39.1% 121.6 143.8 +29.7% 93.8 +28.1% 103.3 47.1 42.8 54.9 36.4 2022 Q3 2023 Q3 2022 M9 2023 M9 2022 Q3 2023 Q3 2022 M9 2023 M9 Revenue R&D Other revenue +39.3% +18.3% Roya
Slide 20: CNS Highlighted brands: Vraylar and Reagila
CNS | Highlighted brands | US first half prescriptions trends continues; Reagila kept up the positive trend in CEU Vraylar® Key messages +26.8% +38.3% +38.1% • Significant year-on-year increase recorded 52.3 136.3 136.0 in royalties linked to sales of Vraylar® in 41.2 98.5 the USA. • 38% increase of
Slide 21: Biotechnology: CDMO services contribute to gross profit increase
Biotechnology | CDMO services contributes to gross profit increase, R&D spending with ongoing biosimilar program Clean EBIT Gross profit +85.3% -0.5 +3.6 12.3 +15.1% 6.6 -4.8 -5.3 3.4 3.9 2022 Q3 2023 Q3 -15.4 -18.9 2022 M9 2023 M9 2022 Q3 2023 Q3 2022 M9 2023 M9 Revenue R&D +8.0% +13.4% 19.1 20.6 +
Slide 22: BIO Highlighted brand: Teriparatide revenues grew over 10%
BIO | Highlighted brand | Teriparatide revenues grew over 10% Terrosa® Key messages • Terrosa® became a massive product. +10.8% +9.6% +13.5% • Sales proceeds from WEU region contributed 16.5 16.9 14.9 substantially to the higher turnover of 5.7 6.2 Terrosa® reported. • Further geographical expansion
Slide 23: General Medicines: Changing FX trends slowing gross profit
General Medicines | Changing FX trends are slowing gross profit which are further dented by additional efficiency improvement projects costs Clean EBIT Gross profit -9.1% +2.2% 41.3 95.5 37.5 -8.4% 93.4 -13.1% 17.1 35.1 32.2 14.8 2022 Q3 2023 Q3 2022 M9 2023 M9 2022 Q3 2023 Q3 2022 M9 2023 M9 Revenu
Slide 24: Each focus area has a clear strategic vision
Each focus area has a clear strategic vision and consists of various type of products Pharma | Pharmaceuticals segment Strategic focus area’s short and long name Official definition Key strategic goal Therapeutic area We look after women’s health globally by setting trends By addressing unmet needs
Slide 25: Research and Development: investing into the future
Research and Development: We are dedicated to continuously investing into the future to serve our patients globally WHC CNS BIO GM Our focus is set on certain General Medicines builds a We develop innovative products Original R&D aims to develop therapeutic areas, notably portfolio offering for our
Slide 26: Pipeline on track with plans
Pipeline on track with plans Clinical phase Preclinical phase Phase I Phase II Phase III Technology Development Clinical phase Regulatory & Launch Neuropsychiatry Women’s Healthcare Biotechnology General Medicines new 26
Slide 27: ESG focused initiatives
ESG focused initiatives ENVIRONMENTAL SOCIAL GOVERNANCE • Climate change action plan aligned • Patient safety in focus with GMP • Comprehensive compliance with the EU’s Fit for 55 policy compliant manufacturing units, programme defining Group-wide package (55% reduction of GHG responsible marketing
Slide 28: Leadership team
Leadership team Gábor Orbán István Hamecz Dr István Greiner CEO CFO R&D Director Appointed Chief Executive Officer from Graduated at Corvinus University Appointed Research Director in 2014. November 1, 2017. Began his professional Budapest in 1991. He started his career in Chemical engineer (M.Sc),
Slide 29: Leadership team
Leadership team Katalin Erdei Tibor Horváth Attila Szénási Tamás Szolyák Commercial Director Director of Pharmaceutical Director of Global Regulatory HR Director manufacturing Science & Portfolio Appointed Commercial After graduating at the Management Director in 2017. Has an MSc Director of Pharmac
Slide 30: Contacts and Financial calendar
Contacts Financial calendar Company name: Gedeon Richter Plc. Sector: Pharmaceutical | November 8, 2023 Company address: 1103 Budapest, Gyömrői út 19-21., Hungary Publication of the Consolidated Report 9 months to September 2023 Telephone: +36 1 431 5764 Fax: +36 1 261 2158 Investor relations manage
Slide 31: Disclaimer
Disclaimer This presentation and the associated slides and discussion contain forward-looking statements. These statements are naturally subject to uncertainty and changes in circumstances. Those forward-looking statements may include, but are not limited to, those regarding capital employed, capita