Chemical Works Of Gedeon Richter Plc · BET:RICHTER
Chemical Works Of Gedeon Richter — Gedeon Richter — H1 2024 Earnings Presentation
39 slides from Chemical Works Of Gedeon Richter's earnings presentation, Aug 6, 2024
Slide 1: Gedeon Richter Q2/H1 2024 Earnings Report
Gedeon Richter Q2/H1 2024 Earnings Report 6 August 2024
Slide 2: H1 2024 highlights – Full-year guidance reiterated
H1 2024 highlights – Full-year guidance reiterated H1 2024 CER revenue growth +12.5% (FX now a slight Pharma Revenues (CER*) tailwind); M&A may add c.1ppt to sales growth in 2024 EUR 2.15-2.25bn guidance to grow „low-to-mid-teens”% 2024 H1 2024 CER Clean EBIT growth +18% (EUR 347mn), Clean EBIT (CER
Slide 3: Financial and operational highlights
Financial and operational highlights Financial highlights • Pharma revenues grew by 16% to HUF 213bn in Q2 2024, bringing H1 2024 pharma revenues to HUF 413bn (EUR 1.06bn), up 14% YoY • CER (ex-FX) revenue growth was 12.5% in H1, within the FY 2024 guidance range; the weaker HUF provided some tailwi
Slide 4: Improving access to Women Health – using both financial (M&A) and social tools (CSR)
Improving access to Women Health – using both financial (M&A) and social tools (CSR) Important steps towards building up original research in Women’s Healthcare • The acquisition of Mithra’s R&D platform and its scientific team provides Richter with capability and know-how to set foot in original gy
Slide 5: Financial Highlights
Financial Highlights 5
Slide 6: Pharmaceutical revenues (ex-FX) rose by 12.5% in H1 2024
Pharmaceutical revenues (ex-FX) rose by 12.5% in H1 2024 Pharmaceutical Revenues, cumulative (HUF bn, EUR mn) Pharmaceutical Revenues by region (HUF bn) +14.1% +12.5% 65.3 Western Europe 76.1 Central Europe 76.4 413.4 407.4 1,060 Pharma other 86.4 362.1 GM Eastern Europe 85.0 84.6 BIO North America
Slide 7: Double-digit growth in three segments, GenMed catching up too
Double-digit growth in three segments, GenMed catching up too WHC Revenues GM Revenues Key messages +15.2% +14.6% +6.0% +6.7% • WHC revenue growth was outstanding in H1 at around 15% YoY, despite slowing slightly 149.5 148.7 121.4 122.2 in Q2. The key brands (EVRA®, Drovelis®, 114.6 129.7 Ryeqo® and
Slide 8: Opex increased by 12% in H1 YoY, less than top-line growth
Opex increased by 12% in H1 YoY, less than top-line growth Operating costs as a % of Pharma revenues (%) Operating costs (pharma) (HUFbn) 40 +8.0% S&M 34 36 34 33 35 33 32 31 32 R&D 30 31 30 30 29 76.9 30 28 Cost of Sales 73.8 G&A 71.2 24 65.9 66.5 13.3 25 23 23 S&M 12.5 20 20 20 21 20 12.1 19 20 19
Slide 9: Clean EBIT (ex-FX) increased by 18% in H1 2024
Clean EBIT (ex-FX) increased by 18% in H1 2024 Pharmaceutical Clean EBIT, cumulative (HUF bn, EUR mn) Key messages +20.9% +18.3% • Clean EBIT (pharma) rose by 21% YoY in H1 2024 to HUF 135.6bn, as FX impact turned into a tailwind and pushed 135.6 347.8 132.6 Q2 Clean EBIT 34% higher (to HUF 71.2bn)
Slide 10: Below-the-line: large unrealized FX gains boost net profit
Below-the-line: large unrealized FX gains boost net profit Net Profit in H1 2024, below-Clean EBIT items (HUF bn) Includes taxes calculated in line Includes mostly with Global Minimum Tax; some inventory impairment 5.9 M&A-related deferred tax income 2.5 0.3 lowered the effective tax rate 17.8 138.2
Slide 11: M&A, dividends used up robust Free Cash Flow, reducing cash pile
M&A, dividends used up robust Free Cash Flow, reducing cash pile Free Cash Flow in H1 2024 (HUF bn) Key messages 157.5 Application of Cash Flow • Free Cash Flow generation improved significantly and more than doubled YoY, 36.5 121.0 FCF reached HUF 111.4bn in H1 2024, 10.1 19.7 111.4 130.2 1.7 • Str
Slide 12: Research and Development
Research and Development R&D 12
Slide 13: R&D pipeline – changes during Q2 2024
R&D pipeline – changes during Q2 2024 Preclinical phase Clinical phase Regulatory & Launch Market Phase 1 Phase 2 Phase 3 Own Technology Development Clinical phase Neuropsychiatry Biotechnology Own Women’s Healthcare RSL* General Medicines new discontinued License * Ready-to-Sell Licensed pipeline 1
Slide 14: Major developments in R&D in Q2 2024
Major developments in R&D in Q2 2024 R&D Women’s Healthcare • Acquisition of BCI Pharma (a Belgium-based biotech company, carrying out innovative research in a variety of Women’s Health conditions) and Mithra R&D capability/know-how has opened the way for Richter to establish its WHC own gynecologic
Slide 15: Neuropsychiatry
Neuropsychiatry CNS 15
Slide 16: Cariprazine revenues grew 22% both in Q2 and H1 2024
Cariprazine revenues grew 22% both in Q2 and H1 2024 CNS CNS | HUF mn Q2 2023 Q2 2024 Ch. % YoY H1 2023 H1 2024 Ch. % YoY Revenue (HUFbn) Revenues 46 115 56 450 22 89 410 109 418 22 +22.4% Cost of Sales -300 -406 35 -515 -782 52 +22.4% Gross Profit 45 815 56 044 22 88 895 108 636 22 61.1 109.4 Gross
Slide 17: Reagila revenues grew 30%+; Vraylar royalty up 20%+
Reagila revenues grew 30%+; Vraylar royalty up 20%+ CNS Vraylar® Key messages +21.6% +21.8% • Royalty income from Vraylar® in Q2 58.3 102.3 2024 approached HUF 53bn with an 52.3 52.8 impressive, 20%+ growth YoY. 49.4 84.1 43.4 • H1 2024’s royalty income of Vraylar® 57.3 exceeded HUF 100bn with a gro
Slide 18: Women's Healthcare
@) Women’s Healthcare. WHC (i) GEDEON RICHTER Health is our mission
Slide 19: Strong top-line growth (15%) and robust margins in H1
Strong top-line growth (15%) and robust margins in H1 WHC WHC | HUF mn Q2 2023 Q2 2024 Ch. % YoY H1 2023 H1 2024 Ch. % YoY Revenue (HUFbn) Revenues 66 418 75 331 13 129 738 149 519 15 Cost of Sales -21 987 -22 267 1 -40 330 -45 520 13 +13.4% +15.2% Gross Profit 44 431 53 064 19 89 408 103 999 16 Gro
Slide 20: Highlighted brands: EVRA success continues; Bemfola faces temporary challenges
Highlighted brands | EVRA success continues; Bemfola faces temporary challenges WHC Bemfola® Key messages -23.5% -33.9% • Bemfola® sales are facing temporary 6.2 12.4 11.2 headwinds due to the supply chain 5.3 5.3 9.4 challenges in certain territories 4.3 4.1 • Apart from Bemfola, the Fertility fran
Slide 21: Continued UF market penetration and new Endometriosis indication drive Ryeqo sales
| Continued UF market penetration reinforced by Highlighted brands new Endometriosis indication drive the jump in Ryeqo sales WHC Key messages Ryeqo® • Ryeqo® keeps strong momentum in Uterine +195.0% +194.6% Fibroids (UF) sales, while Endometriosis indication starts to roll out in several EU markets
Slide 22: Biotechnology
Biotechnology BIO 22
Slide 23: Revenues up materially, negative EBIT broadly unchanged
Revenues up materially, negative EBIT broadly unchanged BIO BIO | HUF mn Q2 2023 Q2 2024 Ch. % YoY H1 2023 H1 2024 Ch. % YoY Revenue (HUFbn) Revenues 13 447 15 080 12 21 305 26 521 24 +12.1% +24.5% Cost of Sales -6 809 -10 289 51 -12 896 -16 799 30 Gross Profit 6 638 4 791 -28 8 409 9 722 16 15.1 Gr
Slide 24: Both CDMO and Terrosa revenues are up significantly in H1
Both CDMO and Terrosa revenues are up significantly in H1 BIO Terrosa® Key messages +32.7% +26.8% • Terrosa® and partner teriparatide revenues increased significantly YoY 7.0 13.0 (+33% in Q2 and +27% in H1) driven by 6.2 6.1 10.3 various factors: 5.3 5.2 9.2 • Partner payments rose materially drive
Slide 25: General Medicines
General Medicines GM 25
Slide 26: Strong Q2 revenues and margins offset softer Q1 performance
Strong Q2 revenues and margins offset softer Q1 performance GM GM | HUF mn Q2 2023 Q2 2024 Ch. % YoY H1 2023 H1 2024 Ch. % YoY Revenues 55 093 62 947 14 114 560 121 420 6 Revenue (HUFbn) Cost of Sales -25 640 -28 106 10 -51 251 -54 517 6 +14.3% +6.0% Gross Profit 29 453 34 841 18 63 309 66 903 6 62.
Slide 27: Fast recovering with double-digit growth in Q2 2024
Fast recovering with double-digit growth in Q2 2024 GM Total GenMed revenue by therapeutic areas (quarterly, HUF bn) Key messages +13.6% • Cardio revenues increased significantly in Q2 2024 YoY as a 63 result of increased promo efforts in key markets (HU, PL) and Other 59 58 7 pricing upside in CEE
Slide 28: Appendix
Appendix @ Geveon RicuTER Health is our mission 28
Slide 29: Significant FX gain (HUF 21bn) in H1 2024 on the weaker HUF
Significant FX gain (HUF 21bn) in H1 2024 on the weaker HUF H1 2024 H1 2023 Q2 2024 Q2 2023 Diff Q2 Diff H1 20.2 -26.5 7.1 -9.9 17.0 46.7 Unrealised exchange (loss)/gain 1.2 -22.0 23.2 Realised exchange (loss)/gain -0.9 -13.4 12.6 -0.3 6.3 Result of realised & unrealised 0.4 2.7 -6.7 -2.4 forward ex
Slide 30: Business units' P&L in H1 2024
Business units’ P&L in H1 2024 Pharma H1 2024 WHC CNS BIO GM Pharma Other Eliminations Group total Other Revenues 149.5 109.4 26.5 121.4 6.5 413.4 12.4 -6.1 419.7 Cost of Sales -45.5 -0.8 -16.8 -54.5 -6.5 -124.1 -9.6 5.9 -127.7 Gross Profit 104.0 108.6 9.7 66.9 0.1 289.3 2.8 -0.2 292.0 Sales & Marke
Slide 31: Strategic positioning and vision of the business units
Strategic positioning and vision of the business units Pharma | Pharmaceuticals segment Name of the Business Units Brief description Key strategic goal Therapeutic areas Leveraging our world class early phase R&D capability Maximize the potential of cariprazine, while developing in the central nervo
Slide 32: Consolidated Income Statement
Consolidated Income Statement 2023 H1 2024 H1 2023 Change Consolidated P&L HUFm HUFm HUFm % 805 158 Revenues 419 693 413 436 1.5% 199 304 of which royalty 104 799 86 429 21.3% (283 834) Cost of Sales (127 722) (157 129) -18.7% 521 324 Gross Profit 291 971 256 307 13.9% (146 047) Sales & marketing ex
Slide 33: Consolidated Balance Sheet - ASSETS
Consolidated Balance Sheet - ASSETS June 2024 Dec 2023 Change Consolidated Balance Sheet HUFm HUFm % ASSETS 1 458 693 1 361 217 7.2% Non-current assets 912 809 826 304 10.5% Property, plant and equipment 359 921 347 394 3.6% Goodwill 73 953 31 903 131.8% Other intangible assets 261 514 230 383 13.5%
Slide 34: Consolidated Balance Sheet - EQUITY AND LIABILITIES
Consolidated Balance Sheet - EQUITY AND LIABILITIES June 2024 Dec 2023 Change Consolidated Balance Sheet HUFm HUFm % EQUITY AND LIABILITIES 1 458 693 1 361 217 7.2% Capital and reserves 1 173 215 1 142 581 2.7% Share capital 18 638 18 638 0.0% Treasury shares (36 892) (29 982) 23.0% Share premium 15
Slide 35: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement June 2023 Dec 2023 June 2024 Change Consolidated cash flow adjusted HUFm HUFm HUFm % Operating activities 171 540 Profit before income tax 156 629 72 854 115.0% 50 808 Depreciation and amortisation 23 287 24 445 -4.7% 5 405 Non cash items (5 413) (4 328) 25.1% (11 15
Slide 36: 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 Budapest Appointed Research Director in 2014. November 1, 2017. Began his professional in 1991. He started his career in the Chemical engineer (M.S
Slide 37: Leadership team
Leadership team Katalin Erdei Attila Szénási Tamás Szolyák HR & Technical Director Chief Operating Officer Director of Global Regulatory Science and Commerce & Marketing After graduating at the University of Szeged Joined the Company in 2019 as Director Joined the company in September 2018 as from t
Slide 38: Contacts and financial calendar
Contacts Financial calendar Company name: Gedeon Richter Plc. | 6 August 2024 – H1 2024 results Sector: Pharmaceutical | 12 November 2024 – Q1-Q3 2024 results Company address: 1103 Budapest, Gyömrői út 19-21, Hungary Telephone: +36 1 431 5764 Investor relations manager Róbert Réthy, CFA +36 20 342 2
Slide 39: 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