Jb Chemicals & Pharmaceuticals Ltd. · NSE:JBCHEPHARM
Jb Chemicals & Pharmaceuticals — Q4 FY24 Earnings Presentation
38 slides from Jb Chemicals & Pharmaceuticals's earnings presentation, May 17, 2024
Slide 1: Cover letter to National Stock Exchange of India
May 17, 2024 National Stock Exchange of India Limited Exchange Plaza, 5th Floor, Plot No. C/1, G-Block, Bandra Kurla Complex, Bandra (E), Mumbai – 400051. Stock Symbol: JBCHEPHARM Dear Sir, Sub: Company Presentation Enclosed is Company’s presentation on financial results for the quarter and year end
Slide 2: JB Pharma – Q4 and FY24 Investor Presentation
JB Pharma – Q4 and FY24 Investor Presentation May 17, 2024 www.jbpharma.com jbpharma/
Slide 3: Disclaimer
Disclaimer No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the d
Slide 4: Synergistic acquisitions productivity Domestic outperformer Jp)
>. Synergistic acquisitions productivity Domestic outperformer Jp) “ E Gl leader Consistency of delivery _ Strong FCF forG000 HEALTH o — Dosage i i op Global regulatory approvals Medicated/Herbal lozenges a . 3 Leadership Key therapies Pillar Brands e she B PHARMA °s Dosage forms State of the art fa
Slide 5: Top 5 – company key facts
47 5 40+ Top 5 Brands among top 300 brands Regulated/semi-regulated Global manufacturer of Years of operations with (IQVIA MAT Mar’24 data), markets of presence through medicated/herbal lozenges consistent track record across contributing over 50% of direct operations and representing a substantial
Slide 6: Corporate Snapshot – Financial Overview
Corporate Snapshot – Financial Overview Revenue (INR cr) PAT (INR cr) ^Op EBITDA Margin (%) ROE (%) ROCE (%) 27.4% 27.0% 42% 25.0% 24.3% 21.3% 3,484 18.6% 3,149 29% 27% 15.4% 24% # 2,424 22% 21% 2,043 1,643 1,775 15% 25% 1,413 19% 18% 19% 17% 449 386 410 553 13% 139 194 272 10% FY18 FY19 FY20 FY21 F
Slide 7: World Class Manufacturing Facilities
World Class Manufacturing Facilities 8 40+ 10 State of the Art Global Dosage forms manufacturing Regulatory produced facilities Accreditations Tablets Capsules Liquids IV Infusions Ampules Vials Ointments Cold Rubs Lozenges Sips 6
Slide 8: Q4 and FY24 Business Performance
Q4 and FY24 Business Performance
Slide 9: CEO’s Message
CEO’s Message JB Pharma continued its momentum in the quarter with market beating growth in domestic business. With strong focus on our leading brands, we continue to drive higher than market volume growth and gain share in our core therapeutic areas. The Ophthalmology portfolio has seen smooth tran
Slide 10: Results Overview: Q4 FY24 vs Q4 FY23
Results Overview: Q4 FY24 vs Q4 FY23 Revenues (INR crores) 13% o JB Pharma recorded revenue growth of 13% to INR 862 crores 862 762 o Domestic business revenue grew 22% to INR 465 crores • Excluding recently added ophthalmology portfolio, Q4 FY23 Q4 FY24 organic growth for domestic business was 13%
Slide 11: Results Overview: FY24 vs FY23
Results Overview: FY24 vs FY23 Revenues (INR crores) 3,484 3,149 o Total revenue for the organization grew 11% to INR 3484 crores 11% • Excluding South Africa business and recently added ophthalmology portfolio, revenue registered YoY growth of 13% o Domestic business revenue registered growth of 16
Slide 12: EBITDA Analysis
EBITDA Analysis INR crores Q4 FY24 Q4 FY23 FY24 FY23 Revenue 862 762 3484 3149 Reported EBITDA 198 164 897 696 Non Cash ESOP Charge 12 17 42 69 Included in Employee Benefits expense ^Operating EBITDA (excluding ESOP 210 181 939 765 charge) Operating EBITDA margins 24.4% 23.8% 27.0% 24.3% 11 ^Operati
Slide 13: Financial Overview Q4 FY24 vs Q4 FY23
Financial Overview Q4 FY24 vs Q4 FY23 Op EBITDA (INR crores) 24.4% o Operating EBITDA registered YoY growth of 16% to INR 210 crores; 23.8% Operating EBITDA margins were at 24.4% (YoY improvement of 60 210 bps) o Gross Profit improved by 15% to INR 561 crores • Gross Profit margins witnessed YoY imp
Slide 14: Financial Overview FY24 vs FY23
Financial Overview FY24 vs FY23 Op EBITDA (INR crores) o Operating EBITDA was INR 939 crores vs INR 765 crores (YoY growth 27% of 23%); Operating margins improved by 270 bps to 27% o Gross Margin witnessed improvement of 320 bps to 66.1% as 24.3% 939 compared to 62.9 % 765 • Gross Profit reported wa
Slide 15: Balance Sheet FY24: Net Cash Positive; Improvement in ROCE
Balance Sheet FY24: Net Cash Positive; Improvement in ROCE o Operating cash flows in FY24 was INR 801 crores vs INR 626 crores in FY23 As on 31 As on 31 Balance Sheet (INR Cr) • Operating cash flows to operating EBITDA improved to Mar’24 Mar’23 85% in FY24 vs 82% in FY23 Net Worth 2923 2480 o ROCE i
Slide 16: Domestic Business Q4 FY24 vs Q4 FY23
Domestic Business Q4 FY24 vs Q4 FY23 Domestic Formulations (INR crores) o Domestic business revenue registered YoY growth of 22% 22% to INR 465 crores in Q4 FY24 o As per IQVIA, JB Pharma recorded YoY growth of 7% in Q4 FY24 vs IPM growth of 6%. 465 • Excluding ophthalmology portfolio, JB grew 9% 38
Slide 17: Domestic Business FY24 vs FY23
Domestic Business FY24 vs FY23 o Domestic business revenue recorded YoY growth 16% to INR 1897 Domestic Formulations (INR crores) crores in FY24 o JB Pharma was one of the fastest growing companies amongst Top 25 in the IPM (IQVIA MAT Mar’24 data), registering YoY growth of 10% vs IPM growth of 8% •
Slide 18: JB Pharma: One of the Fastest Growing Company amongst Top 25 in the IPM
JB Pharma: One of the Fastest Growing Company amongst Top 25 in the IPM Among top 25, JB is one of the One of the fastest growing fastest growing pharma Leadership position company among the Top 25 in company in the IPM in the covered markets the IPM as per IQVIA MAT 10% Vs IPM growth 35% + share in
Slide 19: Consistently Outperforming the Indian Pharmaceuticals Market
Consistently Outperforming the Indian Pharmaceuticals Market JB Pharma consistently outperforming IPM growth 27% 22% #22 20% 18% 10% 11% #25 MAT Mar’24 8% 8% 8% 5% #34 MAT Mar’21 FY21 FY22 FY23 FY24 FY24 (ex Ophthal) IPM JB Pharma MAT Mar’20 Consistent Rank Improvement 18 All data as per IQVIA
Slide 20: Consistent Improvement in Prescriptions; Strong Prescriber Connect
Consistent Improvement in Prescriptions; Strong Prescriber Connect across Specialities JB Pharma Total Prescriptions (in lakhs)* 135,000 Physicians CAGR: 20% 23,000 Gynaecologists 1,568 1,614 48,000 Dentists 1,231 929 28,000 Ophthalmologists 20,000 Pediatricians MAT March'21 MAT March'22 MAT March'2
Slide 21: Productivity Led by Strong Execution: Consistent PCPM Improvement
Productivity Led by Strong Execution: Consistent PCPM Improvement Constant improvement in PCPM# Constant improvement in PCPM# PCPM stands at INR 7 lakhs* in FY24 vs INR 6.2 lakhs in FY23; increase of 13% * 7.00 6.20 PCPM has nearly doubled over a period of 4 years with 5.40 marginal addition of fiel
Slide 22: 5 Brands now Rank among the Top 150 in the IPM
5 Brands now Rank among the Top 150 in the IPM MAT Mar’23 Value Sales* MAT Mar’24 Value Sales* MAT Mar’23 Rank MAT Mar’24 Rank CILACAR 324 388 #44 #32 RANTAC 353 367 #35 #35 METROGYL 165 207 #142 #114 CILACAR-T 138 173 #194 #147 NICARDIA 147 172 #172 #150 21 All data as per IQVIA *INR crores
Slide 23: Brand Franchises Getting Stronger
Brand Franchises Getting Stronger INR 345 crores INR 641 crores INR 285 crores INR 443 crores INR 192 crores INR 309 crores IQVIA MAT Mar’21 IQVIA MAT Mar’24 IQVIA MAT Mar’21 IQVIA MAT Mar’24 IQVIA MAT Mar’21 IQVIA MAT Mar’24 CAGR: 23% CAGR: 16% CAGR: 17% CILACAR T RANTAC DOM METROGYL P CILACAR M RA
Slide 24: Chronic Portfolio Continues to Outperform the IPM
Chronic Portfolio Continues to Outperform the IPM and Overall Chronic Segment; JB Pharma Ranks amongst the Top 20 in the Chronic Segment JB Pharma’s Chronic Portfolio Growing at a 4 years CAGR of 32%* JB Pharma Ranks #20 in the Chronic Segment #20 32% #24 #27 11% IPM Chronic Portfolio Growth% JB Pha
Slide 25: Fastest Growing Company in Top 10 in Cardiology Segment
JB Pharma: Fastest Growing Company in Top 10 in Cardiology Segment; 3 brands now Amongst Top 20 in the Segment MAT MAR’21# MAT MAR’23# MAT MAR’24# 30% 4 4 4 40 20 16 10% 47 23 18 IPM Cardiolology Segment Growth%* JB Pharma Cardiology Portfolio Growth%* 3 brands now rank amongst Top 20 in the Cardiol
Slide 26: Good Performance in all Acquired Portfolios
Good Performance in all Acquired Portfolios • Sporlac franchise revenue at INR 122 crores (IQVIA MAT Mar’24) as against INR 69 crores (IQVIA MAT Mar’22), Sanzyme growing at CAGR of 33% Portfolio • Lobun and Pubergen registered strong YoY growth of 91% and 64% respectively • Despite significant compe
Slide 27: JB Pharma Enters the Fast-Growing Ophthalmology Market
JB Pharma Enters the Fast-Growing Ophthalmology Market Deal Contours JB Chemicals & Pharmaceuticals Ltd (JB Pharma) at its Board The Board also approved the promotion & distribution meeting held on Dec 19, 2023 approved the execution of a agreement with Novartis Healthcare Private Limited for the Tr
Slide 28: Ophthalmology: Portfolio Registered Strong Growth post Smooth Transition
Ophthalmology: Portfolio Registered Strong Growth post Smooth Transition 16.3 After smooth integration in January’24, the ophthalmology portfolio monthly sales witnessed an impressive growth of 11% to INR 16.3 crores in Mar’24 vs Feb’24 (as per IQVIA data) 14.7 14.7 Total prescriptions of the portfo
Slide 29: International Business Q4 FY24
International Business Q4 FY24 4% 397 382 5% o International business recorded revenue of INR 397 crores in Q4 FY24 registering YoY growth of 4% 255 267 • Excluding South Africa, the business recorded YoY 9% growth of 9% o International formulations business registered YoY growth of 100 109 5% to IN
Slide 30: International Business FY24 vs FY23
International Business FY24 vs FY 23 5% 1587 o International business recorded revenue growth of 5% to INR 1509 6% 1587 crores vs INR 1509 crores • Excluding South Africa, international business registered YoY 1069 growth of 12% 1009 o International formulations business recorded revenue growth 6% o
Slide 31: Q4 and FY24 Financial Performance (Consolidated)
Q4 and FY24 Financial Performance (Consolidated) Particulars Q4 FY24 Q4 FY23 YoY Growth FY24 FY23 YoY Growth Revenue from Operations 862 762 13% 3484 3149 11% Cost of Goods Sold 300 275 9% 1182 1168 1% Gross Profit 561 487 15% 2302 1981 16% Gross Profit Margins 65.2% 63.9% 66.1% 62.9% Employee Benef
Slide 32: Consistent Revenue/EBITDA growth over the years
Consistent Revenue/EBITDA growth over the years Domestic Formulations (INR crores) International Business (INR crores) Total Revenues (INR crores) CAGR: 29% CAGR: 12% CAGR: 19% 3484 3149 1640 1897 1509 1587 2424 1173 1236 2043 1127 892 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 Oper
Slide 33: ROCE and ROE increased in FY 24
ROCE and ROE increased in FY 24. Working capital in number of days continues to decline resulting in better cash flows ROE (%) ROCE (%) Net Working Capital in Days 42% 111 98 27% 89 87 22% 21% 25% 18% 19% 17% FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 Strong improvement in ROCE and ROE in FY24 Net Work
Slide 34: Summarising JB Pharma’s Performance (1/2)
Summarising JB Pharma’s Performance (1/2) JB Pharma’s revenue grew at 19% CAGR to INR 3484 crores in FY24 from INR 2043 crores in FY21 including contribution from acquisitions Domestic Business o Domestic revenue grew at 29% CAGR to INR 1897 crores in FY24 from INR 892 crores in FY21 o Domestic
Slide 35: Summarising JB Pharma’s Performance (2/2)
Summarising JB Pharma’s Performance (2/2) • Domestic and CDMO businesses together constitute 67% of total revenue in FY24 as compared to 55% in FY21 • Both businesses have high operating EBITDA margins and high ROCE • Improving Profitability • Operating EBITDA grew at 19% CAGR to INR 939 crores in F
Slide 36: JB Pharma – Looking ahead
JB Pharma – Looking ahead Growth objectives supported by lean organization structure and strong governance framework Domestic business to consistently outperform Continued growth momentum in International market growth driven by business Strong delivery in CDMO business aided by new launches and exp
Slide 37: About JB Pharma
About JB Pharma J.B. Pharma (BSE: 506943 | NSE: JBCHEPHARM | For further information, please ISIN: INE572A01028), established in 1976, is one contact: of the fastest growing pharmaceutical companies in India and a leading player in the hypertension Narayan Saraf, Chief Financial Officer segment. Bes
Slide 38: Thank you
Thank you www.jbpharma.com 37
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