Macro Group Pharmaceutical S.a.e. · EGX:MCRO
Macro Group Pharmaceutical S.a.e — H1 2023 Earnings Presentation
22 slides from Macro Group Pharmaceutical S.a.e's earnings presentation, September 2023
Slide 1: Investor Relations Presentation H1 2023
Investor Relations Presentation H1 2023
Slide 2: Agenda
Agenda 1 Company Overview 2 1H23 Financial & Operational Performance 3 Appendix
Slide 3: Company Overview
Company Overview
Slide 4: 20 years' presence in Egypt's fast-growing cosmeceutical space
20 years’ presence in Egypt’s fast-growing cosmeceutical space Key Corporate Milestones Inception Development Phase Institutionalization Value Creation Next Growth Phase Founded by Dr. El Gradual shift towards Launch of 3 new Launch of 2 new Nayeb and partner offering therapeutic areas therapeutic a
Slide 5: Leading player in Egypt's cosmeceuticals industry
Leading player in Egypt’s cosmeceuticals industry The leading and one of the Attractive portfolio of 169 fastest-growing cosmeceutical SKUs across a variety of Established in 2005, Macro Group is Most of its products manufactured in-house companies in Egypt therapeutic areas principally engaged in t
Slide 6: With strong barriers to entry
With strong barriers to entry Established distribution Extensive marketing budget & Pioneers in the Cosmeceuticals space network & capabilities continuous innovation Facility built in 2010 with ample room for growth without Defensive prescription-based sales model Marketing budget allows for standal
Slide 7: Solid track record in launching new products
Solid track record in launching new products Macro Group has introduced 59 new products between 2020 and 2022, which cumulatively generated revenues of EGP 58 million by 2022, up by c.15-fold from 2020 and representing an 8% contribution to total revenues for the year 59 products EGP 58 mn Total pro
Slide 8: Operating across a variety of high-growth therapeutic areas
Operating across a variety of high-growth therapeutic areas Macro Group boasts a highly attractive portfolio of market leading brands across its different subsegments 1H23(1) Market Positioning Therapeutic Areas Female & Skin Care Hair Care Anti-Scar Oral Care Antiseptics Analgesics Nutraceuticals I
Slide 9: Supported by extensive & robust sales capabilities…
Supported by extensive & robust sales capabilities… MACRO Advantage An Innovative Market Research and Concept Development Approach, Closing the Customers, Doctors and Pharmacies Feedback Loop Doctors Recommend Express Need Products Highly-incentivized salesforce Provide Feedback Customers Sales Team
Slide 10: …and an efficient distribution platform with wide coverage
…and an efficient distribution platform with wide coverage The promotion team is complemented by its recently expanded and highly capable and incentivized distribution team, which provides market penetration and national-level coverage across all channels Direct Sales Channels • Revenues from direct
Slide 11: Well-Invested Production Facility with Capacity for Growth
Well-Invested Production Facility with Capacity for Growth Macro produces most of its portfolio at its modern, well-invested manufacturing facility with top-of-the line equipment and ample capacity for significant growth Key Machinery 3rd Industrial Zone in Liquids Creams Soap Badr City, Cairo Semi-
Slide 12: 1H23 Financial & Operational Performance
1H23 | Financial & Operational Performance
Slide 13: 1H23 | Period in Review
1H23 | Period in Review Macro recorded robust revenue growth of 10.5% YoY in 1H23, underlining the success of initiatives taken to cushion the impact of inflationary and currency headwinds on its margins by bringing up the company’s average pricing by 37% YoY New Launches Premium Brands Revenue Grow
Slide 14: 1H23 | Top-Selling Brands
1H23 | Top-Selling Brands Oral Care Female & Anti-Scar Topical Muscle Hair Care Skin Care Skin Care Skin Care Skin Care Hair Care Intimate Care Relaxant 14 SKUs 8 SKUs 4 SKUs 6 SKUs 13 SKUs 2 SKUs 4 SKUs 5 SKUs 3 SKUs 7 SKUs 9% 9% 7% 6% 5% 5% 5% 4% 4% 3% 31.6 30.1 24.3 19.2 18.2 16.1 15.5 14.9 13.4
Slide 15: 1H23 | Sales Breakdown & Analysis
1H23 | Sales Breakdown & Analysis Revenue Analysis by Therapeutic Area Volumes & Revenues by Therapeutic Area | 1H23 ◼ 1H22 ◼ 1H23 ⚫ YoY Growth ◼ Skin care Volumes Revenues 0.4% 0.8% 1.9% 54.4% 5.9% -21.4% 18.1% 1.6% 44.8% 239.0% ◼ Hair care 4% 5% 134.5 137.1 ◼ Female & Intimate care 5% 2% 9% ◼ Anti
Slide 16: 1H23 | Income Statement Highlights
1H23 | Income Statement Highlights 1H23 Highlights Volume Sold Revenues(1) Gross Profit • Macro recorded total revenues of EGP 337.2 million in 1H23, up (mn units) (EGP mn) (EGP mn/% margin) 11% YoY, with top-line growth primarily driven by a 37% YoY increase in average selling prices, which had an
Slide 17: 1H23 | Balance Sheet Highlights
1H23 | Balance Sheet Highlights Net Working Capital Total Debt Short-Term Debt Net NetDebt/EBITDA Debt/EBITDA CAPEX (EGP mn / % change) (EGP mn / % change) (EGP mn / % change) (% change) (x) (EGP mn / % Change) ADIB AUBE FAB 0.9% 1.5% 458.2 170.1 441.1 160.5 132.6 138.6 0.7x 4% 6% 5.1 4% 23.3 94% 11
Slide 18: 1H23 | Working Capital Analysis
1H23 | Working Capital Analysis Cash Conversion Cycle | CCC Cash Conversion Cycle (CCC) 17 days 39 days 116 days • MACRO’s CCC recorded 284 days in 1H23, reflecting an increase of 116 days 284 YoY, driven primarily by a 98-day increase in inventory DIO. Growth in the 146 185 168 129 company’s CCC
Slide 19: Appendix
OY QO Appendix
Slide 20: 1H23 | Consolidated Income Statement
1H23 | Consolidated Income Statement H1-2022 H1-2023 % CHG Consolidated Income Statement | EGP Actual Actual Y-o-Y Sales Revenue 305,134,003 337,235,024 10.5% COGS (69,389,170) (96,196,046) 38.6% Gross Profit 235,744,833 241,038,978 2.2% Gross profit margin 77.3% 71.5% -5.8 pps G&A Expenses (41,246,
Slide 21: 1H23 | Consolidated Balance Sheet
1H23 | Consolidated Balance Sheet Consolidated Balance Sheet | EGP Dec-22 Jun-23 % CHG Y-o-Y Inventories 138,732,545 174,490,075 25.8% Trade and notes receivables 368,327,924 332,812,367 -9.6% Prepayments & other debit balances 38,694,998 42,264,454 9.2% Cash & cash equivalents 186,751,962 116,975,7
Slide 22: 1H23 | Consolidated Cash Flow Statement
1H23 | Consolidated Cash Flow Statement % CHG % CHG Consolidated Cash Flow Statement | EGP 1H22 1H23 (Continued) 1H22 1H23 Y-o-Y Y-o-Y Cash flows from operating activities Cash flows from investing activities Profit for the year before income tax 93,499,940 38,404,455 -58.9% Payments to purchase of
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