Balaxi Pharmaceuticals Limited · NSE:BALAXI
Balaxi Pharmaceuticals — Q3 FY2023 Earnings Presentation
22 slides from Balaxi Pharmaceuticals's earnings presentation, February 2023
Slide 1: Branded IPR-driven Pharma Player in Frontier Markets
Branded IPR-driven Pharma Player in Frontier Markets Q3 & 9M FY23 Financial Results
Slide 2: Disclaimer
Disclaimer Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, technological risks, and many other factors that could cause our actual
Slide 3: Contents
Contents 04 Corporate Snapshot 15 Financial Highlights 21 Strategic Roadmap 3
Slide 4: Bridging the Supply Gap in Frontier Markets
Bridging the Supply Gap in Frontier Markets Branded IPR-based pharma Presence in OTC segments including company strong branded generics portfolio Frontier markets leadership in Targeting top-2 position in each Latin America and Africa geography Vast portfolio across diverse Backed by deep distributi
Slide 5: Successful Produce, Stock, Sell Business Model
Successful Produce, Stock, Sell Business Model Established operations: Guatemala (Latin America), Dominican Republic Expansion initiated: Markets (Caribbean) and Angola (Africa) Nicaragua, Ecuador, Chile (Latin America) Central African Republic, Zambia (Africa) New operations: Hondurus and El Salvad
Slide 6: Key Success Factors
Key Success Factors Market Selection Methodology ▪ Focus on countries with high-potential economic growth framework ▪ Identify non-English speaking countries with similar characteristics ▪ Low competitive intensity and potential to establish top-2 position ▪ On-ground feedback mechanism allows deep
Slide 7: Transition from "Asset Light" to "Asset Right"
Transition from “Asset Light” to “Asset Right” Marketing and Market Research Product Product Manufacturing Distribution Identification Registration Existing Operations New Manufacturing Unit As a part of its corporate evolution, Balaxi is moving its business model from ‘Asset Light’ to ‘Asset Right’
Slide 8: Investment in Manufacturing Facilities
Investment in Manufacturing Facilities Setting up EU GMP compliant pharma manufacturing unit General Oral Solid Dosage (OSD) and Liquid Injection formulations Targeting demand for high quality products in Latin American markets Allows full backward integration of supply chain Production from Pharma
Slide 9: Global Footprint
Global Footprint Portugal China Existing Market Dominican Republic India Targeted Expansion Guatemala Honduras Central Product Sourcing Regions El Salvador Nicaragua African Republic Ecuador Zambia Angola Chile Existing/targeted markets have aggregate GDP of $ 400 billion and pharma imports of $ 6 b
Slide 10: Key Milestones
Key Milestones Started business supplying white labelled products to customers in Africa Diversified supply chain by Products were sourced from sourcing pharma products Set-up central distribution WHO GMP certified plants from WHO GMP certified warehouse in Guatemala, based in India manufacturers in
Slide 11: Corporate Structure
Corporate Structure Balaxi Pharmaceuticals Limited Balaxi Global DMCC, Dubai (WOS) Balaxi Balaxi Balaxi Balaxi Balaxi Balaxi Healthcare Healthcare Balaxi Healthcare Healthcare Healthcare Healthcare Healthcare Dominica Guatemala Angola LDA EL Salvador Honduras Central African Angola LDA SRL (WOS) S.A
Slide 12: Experienced Board of Directors
Experienced Board of Directors Ashish Maheshwari Minoshi Maheshwari Kunal Bhakta Chairman & Managing Director Non-Executive Director Independent Director Founder of the company, first Co-founder, 20 years of Chartered Accountant with 15 years’ generation entrepreneur, rich experience with Balaxi exp
Slide 13: Strong Leadership Team
Strong Leadership Team Ashish Maheshwari Amol Mantri Chairman & Managing Director CFO Founder of the company, first generation Qualified Chartered Accountant and Certified Public entrepreneur, qualified Chartered Accountant Accountant from USA Commenced business by supplying white labelled Associate
Slide 14: Financial Highlights
FINANCIAL HIGHLIGHTS 14
Slide 15: Management's Comments
Management’s Comments “During the quarter, we have strategically focused on our newly launched geographies in the Latin American markets – Guatemala, Honduras and El Salvador. These LATM markets have contributed 40% of our pharmaceuticals revenues and we are confident of increasing this further as w
Slide 16: Financial Performance – Q3 & 9M FY23
Financial Performance – Q3 & 9M FY23 Particulars(INR Crore) Q3FY23 Q3FY22 YoY 9M FY23 9M FY22 YoY Revenue 86.58 61.72 40.5% 255.74 190.29 34.4% Gross Profit 33.85 19.72 71.6% 104.41 55.68 87.5% Gross Margin % 39.1% 32.0% 714 bps 40.8% 29.3% 1,157 bps Operating EBITDA 15.29 13.55 12.8% 43.79 38.97 12
Slide 17: Pharma Product Mix – Q3 FY23
Pharma Product Mix – Q3 FY23 Geographies Products Shareholders’ Debt Fixed Assets Working Capital 40% Funds 35% Angola Branded LATM* Generics 60% 65% Dosage Forms Therapeutic Areas 11% Tablets Antibiotics 34% Injectables 40% 20% Analgesic 44% Liquids Anti-malaria Capsules Others 11% Others 5% 21% 14
Slide 18: Quarterly Performance Commentary
Quarterly Performance Commentary Revenue ▪ Higher contribution from the pharmaceuticals business led to y-o-y growth of 40.3% in revenues for Q3 FY23 Shareholders’ compared to corresponding quarter last year. The share of LATM markets increased to 40% of Debtexpand geographical Fixed Working Capital
Slide 19: Historical Financial Performance
Historical Financial Performance Particulars (INR Crore) FY22 FY21 YoY Revenue 279.39 231.33 +20.8% Gross Profit 83.79 59.19 +41.6% Gross Margin % 30.0% 25.6% +440 bps Operating EBITDA 55.18 44.64 +23.6% EBITDA Margin % 19.7% 19.3% +45 bps Profit After Tax 47.66 38.14 +25.0% PAT Margin % 17.1% 16.5%
Slide 20: Pharma Product Mix – FY22
Pharma Product Mix – FY22 Geographies Products Shareholders’ Angola 28% Debt Fixed Assets Working Capital Funds 30% Guatemala Branded Generics 59% 13% Dominican Republic 70% Dosage Forms Therapeutic Areas 12% Tablets Antibiotics 34% Injectables 41% 13% 46% Analgesic Liquids Anti-malaria 12% Capsules
Slide 21: Core Strategy: Enter, Expand & Excel
Core Strategy: Enter, Expand & Excel Balaxi in 2020: Business Consolidation ▪ Presence across Angola, Guatemala and Dominican Republic ▪ Effective and efficient supply chain model consisting of 38 warehouses and a fleet of owned vehicles Balaxi in 2021-22: Expansion into New Geographies ▪ Aim to cap
Slide 22: Thank You
Plot No. 409, H.No. 8-2-293, 2nd Floor Maps Towers, Jubilee Hills, Road No:81,Hyderabad. Telangana CIN: L25191TG1942PLC121598 Company Investor Relations contact Sunny Purohit +91-40-2355-5300 sunny@balaxi.com www.balaxipharma.in BALAXI BALAXI:IN Thank You
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