Agp Limited · PSX:AGP
Agp — H1 2023 Earnings Presentation
28 slides from Agp's earnings presentation, September 2023
Slide 1: we value life
we value life
Slide 2: AGP Management Representatives
AGP MANAGEMENT REPRESENTATIVES Ms. Nusrat Munshi Managing Director & Chief Executive Officer Mr. Junaid Aslam Group Chief Financial Officer Mr. Umair Mukhtar Director Business Planning, Corporate Affairs & Company Secretary
Slide 3: Table of Contents
TABLE OF CONTENTS Corporate Profile Key Achievements & Developments Industry Overview Financial Performance Challenges & Future Outlook Questions and Answers
Slide 4: Corporate Profile
CORPORATE PROFILE
Slide 5: Corporate Information
CORPORATE INFORMATION Pattern of Shareholding Shariah Compliance Meezan Bank Limited reviewed the AitkenStuart Pakistan accounts of AGP and found them to be in 55.80% (Pvt.) Limited compliance with Karachi Meezan Islamic Index – 30 Criteria set out by Pakistan Muller & Phipps (Pakistan) Stock Exchan
Slide 6: Board of Directors
BOARD OF DIRECTORS AG ie a a Tariq Moinuddin Khan Zafar Iqbal Sobani Shauzab Ali r Kamran Nishat Chairman Independent Director Independent Director Non - Executive Director M. Kamran Mirza Nusrat Munshi Non — Executive Director Chief Executive Officer Non - Executive Director Non - Executive Directo
Slide 7: Our Journey
OUR JOURNEY 1989 1991 1995 2003 2007 2013 Signs an Acquired 30% AGP (Pvt.) Ltd. Enters into a JV agreement with Purchase Eli Purchase UCB stake of Eli Lilly starts with Eli Lilly UCB Belgium to Lilly brand brand rights for Pakistan commercial Pakistan for manufacture & rights for Ceclor Rigix in ope
Slide 8: Manufacturing Plants
MANUFACTURING PLANTS Plant I Plant II Plant III Particulars [General Health Care] [Cephalosporin] [Nutraceuticals] Location Plot B-23/C, SITE Plot D-109, SITE F/46, SITE-II, Superhighway [All Karachi based] Production 2022 43.2 Million packs 9.2 Million packs 1.6 Million packs Installed Capacities 6
Slide 9: Key Achievements & Developments
KEY ACHIEVEMENTS & DEVELOPMENTS
Slide 10: Recent Achievements
RECENT ACHIEVEMENTS Secured 1* Position in Bagged awards in 8 Highest ever sales Highest ever production Pharma Category at Best categories at the GDEIB PKR 1.2 billion in Jan No. of Packs - 6.8 million Corporate Report Awards Awards 2023 2023 in Feb 2023 pected a. B'S /4 HANA iii > & as a Presented
Slide 11: Industry Overview
INDUSTRY OVERVIEW
Slide 12: Pharma Industry Update
PHARMA INDUSTRY UPDATE MOVING ANNUAL TURNOVER YEAR TO DATE 5 Year PKR in Unit Value PKR in Unit Value CAGR % JUNE 2023 Billion Growth % Growth % Billion Growth % Growth % Industry 748 4.1 14.2 376 0.7 13.1 15.3 AGP 9.4 13.9 22.8 4.8 11.6 21.2 15.6 OBS AGP 5.5 13.4 28.7 2.6 2.2 15.7 19.6 Consolidated
Slide 13: Financial Performance
FINANCIAL PERFORMANCE
Slide 14: Highlights of Financial Statements – HY 2023 [Standalone]
HIGHLIGHTS OF FINANCIAL STATEMENTS – HY 2023 [STANDALONE] REVENUE GROSS PROFIT EBIT 2023 6,044 2023 2,660 2023 850 2022 4,899 2022 2,590 2022 1,181 Increase 1,145 2023 – Margins * 44.0% 2023 – Margins 14.1% % Increase 23.4 2022 – Margins 52.9% 2022 – Margins 24.1% * Margins excluding toll manufactur
Slide 15: Highlights of Financial Statements – HY 2023 [Consolidated]
HIGHLIGHTS OF FINANCIAL STATEMENTS – HY 2023 [CONSOLIDATED] REVENUE GROSS PROFIT EBIT 2023 8,088 2023 4,180 2023 1,548 2022 7,124 2022 3,617 2022 1,596 Increase 964 2023 – Margins 51.7% 2023 – Margins 19.1% % Increase 13.5 2022 – Margins 50.8% 2022 – Margins 22.4% PAT `` ADJUSTED PAT* 2023 732 2023
Slide 16: AGP's Top Products Sales Overview
AGP’s TOP PRODUCTS SALES OVERVIEW MAT JUNE 2022 TOP PRODUCTS CONTRIBUTION TO SALES BRANDS (PKR IN MILLION) Others Rigix Rigix 2,334 35.8% 24.7% Osnate 1,412 Ceclor 1,250 Anafortan 575 Spasler 500 Spasler Osnate Others 3,378 5.3% 14.9% Anafortan Ceclor Total 9,448 6.1% 13.2% Launched 2 brands, 3 SKUs
Slide 17: AGP's Top Products Market Analysis
AGP’s TOP PRODUCTS MARKET ANALYSIS As per IQVIA, MAT June 2023 Brand Rigix Osnate-D Ceclor Spasler-P Anafortan Yearly Sales in Mn 2,334 1,412 1,250 500 575 Growth (%) 19.92% 11.40% 20.00% 33.55% 7.43% Antihistamines Therapeutic Class Calcium Cephalosporins Oral Antispasm + Antichol Plain Systemic Ye
Slide 18: OBS AGP's Top Products Overview
OBS AGP’s TOP PRODUCTS OVERVIEW MAT JUNE 2023 TOP PRODUCTS CONTRIBUTION TO SALES BRANDS (PKR IN MILLION) Others Azomax 3,282 31.3% Zatofen 486 Azomax 59.8% 1,719 Others Zatofen 8.9% Total 5,487 Focused strategy on Anti infectives, Pain On 12 Months basis, Azomax has crossed the Management and Oncolo
Slide 19: OBS AGP's Top Products Competitive Market Analysis
OBS AGP’s TOP 3 PRODUCTS COMPETITIVE MARKET ANALYSIS As per IQVIA, MAT June 2023 Brand Azomax Zatofen Yearly Sales in Mn 3,282 486 Growth 16.93% 43.68% Therapeutic Class Macrolides Ketotifen Yearly Value in Mn 17,760 598 Growth 12.78% 36.83% Market Share in TC 18.48% 81.27%
Slide 20: Viatris Acquisition [Pfizer Portfolio]
VIATRIS ACQUISITION [PFIZER PORTFOLIO] Product portfolio Acquisition Consideration Acquired 17 brands [10 active], Total size of transaction is ~PKR 9.3 comprising of broad range of anti- billion depressants, anti-hypertensive and Debt is 75% - up to PKR 6.9 billion ophthalmology products Annual rev
Slide 21: OBS Pakistan's Top Products Overview
OBS PAKISTAN’S TOP PRODUCTS OVERVIEW MAT JUNE 2023 BRANDS TOP PRODUCTS CONTRIBUTION TO SALES (PKR IN MILLION) Others Norvasc Norvasc 1,162 20.4% 58.2% Zoloft 267 Lyrica 156 Others 407 Lyrica Zoloft Total 1,991 7.8% 13.4% OBS Pakistan began its commercial operations On MAT basis, Norvasc has achieved
Slide 22: Overview of Financial Ratios
OVERVIEW OF FINANCIAL RATIOS YoY Change (%) 2023 2022 AGP Industry 51.7 Ind. Avg.: 30.7 50.8 Ind. Avg.: 38.0 52.4 45.2 44.7 45.7 45.6 1.8 41.0 40.1 42.0 Gross Profit Ratio (%) 34.3 21.3 21.4 22.0 18.4 6.9 (19.3) AGP Industry Ind. Avg.: 3.1 12.2 Ind. Avg.: 7.9 13.9 Net Profit to Sales Ratio (%) 12.2
Slide 23: Overview of Financial Ratios – EBIT Margin
OVERVIEW OF FINANCIAL RATIOS YoY Change (%) 2023 2022 AGP Industry Ind. Avg.: 8.9 22.4 Ind. Avg.: 15.4 20.3 19.7 19.1 18.8 17.6 16.7 EBIT Margin to Sales 15.7 14.1 11.4 Ratio (%) 9.1 8.0 (14.7) 7.1 6.1 2.4 3.1 (42.3)
Slide 24: Key Challenges & Future Outlook
KEY CHALLENGES & FUTURE OUTLOOK
Slide 25: Key Challenges and Mitigants
KEY CHALLENGES AND MITIGANTS CHALLENGES POTENTIAL IMPACTS MITIGANTS • Higher cost of imported Raw • Would be partially offset by (i) one-off Materials / inputs price increase allowed due to • YTD basis, the local currency massive PKR devaluation and (ii) depreciated by ~35%, [PKR 227 on CPI-based pr
Slide 26: Key Challenges and Mitigants
KEY CHALLENGES AND MITIGANTS CHALLENGES POTENTIAL IMPACTS MITIGANTS • Rising CPI index has increased cost • Strict cost control measures and of doing business deferring expenditures wherever • YTD basis, the average inflation has possible been 31.8% vs 17.3% in SPLY • However, cost of doing business
Slide 27: Future Outlook
FUTURE OUTLOOK HIGH POTENTIAL PRODUCTS NEW LAUNCHES Will continue to drive growth from high potential Focus on launching new and robust product products with high margins pipeline and therapies; With the aim to increase market share and Over the last 5 years, the Company has launched penetrate furth
Slide 28: Questions & Answers
QUESTIONS & ANSWERS