Mankind Pharma Ltd. · NSE:MANKIND
Mankind Pharma — Q1 FY25 Earnings Presentation
35 slides from Mankind Pharma's earnings presentation, Jul 31, 2024
Slide 1: Investor Presentation Q1FY25
vig Mankindil> INVESTOR PRESENTATION QIFY25 31 July 2024
Slide 2: Forward-looking statements disclaimer
The statements, are as on date and may contain forward-looking statements like the words “believe”, “expects”, “anticipate”, “aim”, “will likely result”, “would”, “will continue”, “contemplate” “intends”, “plans”, “estimates”, “seek to”, “future”, “objective”, “projects”, “goal”, “likely”, “project”
Slide 3: Index
Index 04 Business Updates – Q1 FY25 • Domestic Business • Consumer Healthcare Business • Export Business 01 Mankind Pharma at a Glance 05 Additional Information • ESG 02 BSV at a Glance and Transaction Overview • Key Milestones & Key Strengths • Strategy Going Ahead • Financials - Steady Growth Traj
Slide 4: Market Leadership, Scale, Growth, Profitability
Rank in Prescriptions over Rank by value in Consumer Healthcare brands in Top 5 of the IPM* Market the last seven years* IPM* ranked #1 in their categories* Leadership Brand families* worth FY24 Revenue FY24 Domestic Revenue Mar’24 Field force*** INR 100 Cr+ Scale Revenue CAGR FY21-24 Domestic Busin
Slide 5: Mankind Pharma Domestic: From mass market to specialty chronic
Mankind Pharma Domestic From mass market to consumer to specialty chronic Mass Market Specialty Chronic (Acute/ Chronic / Semi Chronic) (Cardio / Diabeto / CNS) Consumer Healthcare (OTC) BSV - Super Specialty ~INR 1,723 Cr/28% 28% / 36% ~INR 706cr Revenue/Adj. EBITDA Margin INR 8,816 Cr Domestic Rev
Slide 6: BSV: Women's health, fertility and critical care
World’s 1st & Only Big Domestic Brands2 Anti Rho(D) Recombinant Antibody Fast Growing & INR 100cr+: 1 INR 50-100cr: 3 India’s 1st Comprehensive Anti thymocyte Ig, r-FSH, High Pure HMG and r- Fertility Portfolio INR 25-50cr: 8 HCG 76% | 55% 28% 21% Women’s Health sales in Adj. EBITDA Margin4 in FY24
Slide 7: BSV Market Share – Domestic (FY24)
BSV Market Share – Domestic (FY24) 100% 100% 98% Women Health Fertility Critical Care/Ig 44% 37% 28-30% 24% Anti-D / Rhoclone Thymogam ASVS Hucog Humog Luprodex Foligraf BSV Position FY24 Sales 179 32 41 63 55 37 35 (In INR cr) FY21-24 Sales 20% 37% 20% 13% 38% 16% 60% CAGR No. of Key NA NA NA 3 1 2
Slide 8: Mankind to acquire 100% stake in BSV
Mankind to acquire1 100% stake in BSV Enterprise value of approx. INR 13,630 crores Transaction Details Translates to 22x-23x EBITDA FY25E Expected synergy benefits ranging from Rs 50 – 100 crores over 12 to 24 months Translates to 17x-18x EBITDA FY26E Transaction To be funded through in
Slide 9: Financial Performance
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Slide 10: Key Financials – Q1 FY25
Mr. Rajeev Juneja Vice Chairman & Managing Director • Witnessed a steady revenue growth of 12.2% YoY with continued outperformance of 1.2x1 to IPM driven by a strong recovery in volume Segmental Revenue Break - Up • We are now the 2nd largest pharma company1 by volume with the 9% 8% increase in mark
Slide 11: P&L Highlights – Q1 FY25
INR Crore Q1FY25 Q1FY24 YoY Growth Q4FY24 QoQ Growth Revenue from Operations (A=B+C) 2,893 2,579 12.2% 2,441 18.5% Domestic Business (B) 2,634 2,419 8.9% 2,174 21.2% i. Domestic Business (ex CH) 2,428 2,211 9.8% 2,018 20.3% ii. Consumer Healthcare (CH) 206 208 -0.9% 156 32.0% Exports Business (C) 25
Slide 12: Key Financial Metrics: ROE, ROCE, Net Cash, Cash Flow
ROE* ROCE* Net Cash (INR crore) Dip on account of acquisition Dip on account 3,747 of acquisition 3,260 29% 29% 25% 34% 34% 23% 28% 25% 1,727 1,366 Mar31, Mar31, Jun30, Jun30, Mar31, Mar31, June30, June30, Mar31, Mar31, June30, June30, 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 Cash
Slide 13: Business Updates
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Slide 14: Strong Growth in Domestic Revenue
Strong Growth in Domestic Revenue* INR Crore 9,522 8,453 7,595 2,419 2,634 FY22 FY23 FY24 Q1FY24 Q1FY25 Domestic revenue grew 8.9% YoY and 9.8% YoY (ex-CH)* Secondary sales growth of 10.5% vs 8.7% IPM growth (1.2x to IPM) supported by strong volume growth of 1.9% vs 0.4% for IPM out-performa
Slide 15: Increased chronic share by 120bps in last 12 months
Increased chronic share by 120bps in last 12 months Consistent focus to increase chronic contribution 1.3x outperformance to IPM chronic in Q1FY25 2.6% 2.3% 1.5x 1.3x 1.4x 1.7x 1.3x 39 38 39 19 38 17 37 37 36 14 14 14 36 13 11 10 11 34 10 33 FY22 FY23 FY24 Q1FY24 Q1FY25 FY22 FY23 FY24 Q1FY24 Q1FY25
Slide 16: Foray into Onco and Transplant business through acquisition of Panacea
Reference Brand Launched Market 5 Therapy Area Indication Market Size Rationale (Year) (INR Cr) Year CAGR # (2023) • Neptaz – In-licensed from Novartis. Strong Revenue and Volume Heart Failure 6261 21% growth. Ranks in the top 5 in its market. • Crenzlo - In-licensed from Novartis, to foray into the
Slide 17: High Ranks across Acute and Chronic Areas
High Ranks across Acute and Chronic Areas Q1FY25 - Sales Mix representing Diversified Therapy Presence Anti-Infectives Rank in CVM FY 20-24 CAGR 8% Cardiovascular Key Therapy Areas 13% (Q1FY25) 3% Mankind IPM 5% Gastro Intestinal Chronic therapies 15% 11% Respiratory 6% 14% Cardiovascular 4 18% 11%
Slide 18: Consumer Healthcare Segment Revenue
Consumer Healthcare Segment Revenue (INR Crore) EBITDA % 19.9% 20.0% 20.6% 19.5% 2% 692 706 589 -1 % 32% 208 206 156 FY22 FY23 FY24 Q1FY24 Q4FY24 Q1FY25 Recovery in revenue with 32% QoQ increase in Q1FY25 supported by faster growth in Modern Trade, E-commerce and Q-Commerce channels Consistently
Slide 19: Strategically selected national and regional brand ambassadors
Strategically selected national and regional brand ambassadors Corporate Brand Ambassadors Dominant Brands Consumer Healthcare Brand Ambassadors #1 Condom Brand Kartik Aaryan Sunny Leone Market Share – 30% #1 Anushka Kajal Srabanti Pregnancy Test Kit Brand Sharma Aggarwal Chatterjee Market Share – 8
Slide 20: Marketing campaigns and rural outreach
Continues to leverage on Digital campaigns around Fool’s Day, Launched a Mother’s Day video campaign titled #LetThemDecide, promoting #ApnePartnerSePucho Campaign via Voting Virgin (election campaign), and autonomy in family planning choices and addressing societal pressures on women various media c
Slide 21: New TVC and print campaigns targeting key markets
Continue to run comprehensive New TVC and print campaigns targeting key markets (HSM & Maharashtra) along campaigns focusing on P1 markets, Ranveer Singh TVC in West with regional campaigns for better brand connectivity ensuring a wide reach and strong Bengal market brand messaging Collab with YouTu
Slide 22: Revenue from Exports
Revenue from Exports (INR Crore) 813 296 259 187 160 FY22 FY23 FY24 Q1FY24 Q1FY25 Revenue growth of 62% YoY driven by increase in our base business supported by curated launches in past 12-18 months During the quarter, we have launched 2 new products in US taking the total launched products to 4
Slide 23: Additional Information
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Slide 24: ESG Key Highlights
Key Key Key New Best Safety Practices- Highlights Initiatives Priorities Technologies British Safety Council award for Unit-3 • 85% reduction in CO2 emissions as compared to FY23* • 20.6% reduction in • Consistent reduction in • Bio-assay system • 100% & 72.3% generated Ground water CO2 emission to
Slide 25: Environment, Social, Governance
Environment* Hazardous Waste - 70% for Implementation of Wild life co-processing and 30% for Conservation plan for 2 no's Plastic Neutral in FY24** landfilling by 2027 (Base of Schedule-1 species in year FY21) Sotanala area 100% Renewable Power Reduce ground water Carbon neutral by 2030 intensity in
Slide 26: Key Milestones: Domestic Formulations Market Share and Ranking
Sustained Improvement in Domestic Formulations Market Share and Ranking Market Share 4th Rank 8th Rank 4.1% 4.4% 3.3% 1995 2004 2007-10 2012 2015 2018-19 2020 2021 2022 2023 2024 Acquired1 100% stake in Successfully listed BSV Limited Commenced Entered chronic Entered Set up first R&D Incorporated o
Slide 27: Key Strengths
India revenues contribute 92% of total revenues in FY24 Focus on Focus on Net cash of INR 3,260 Cr** with consistent CFO/ domestic Strong domestic EBITDA ratio in excess of 80% during FY24 business Volume- balance sheet business with best in growth driven Consistent outperformance in volume growth v
Slide 28: Strategy Going Ahead
Increase the value of prescriptions in existing markets of strength by expanding market coverage; CVM moved from 62% in FY21 to 69% in FY24* Increasing share of chronic segment by growing presence in existing therapies (Diabetes - Insulin Glargine, Respiratory – Inhalers) and expansion into new ther
Slide 29: Financials – Steady Growth Trajectory
Revenue (INR Cr) Strong Growth in Domestic Revenue Revenue from Exports (INR crore) 15% 13% CAGR CAGR 81% 10,335 CAGR 9,522 813 8,749 8,453 7,782 7,595 5,865 6,214 6,028 5,789 296 186 187 76 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 EBITDA (INR Cr) and Margin % (1) P
Slide 30: Key Performance Highlights
Key Performance Highlights FY18 FY19 FY20 FY21 FY22 FY23 FY24 Value Growth YoY in IPM (%) 11.3 12.6 12.5 11.1 17.7 10.6 8.5 Market share by Value in IPM (%) 3.9 4.0 4.1 4.3 4.3 4.4 4.4 Market Ranking by Value in IPM (x) 4 4 4 4 4 4 4 CVM share in total IPM (%) 60.2 61.6 62.4 62.2 65.4 68.1 68.8 Mark
Slide 31: Therapy wise share in Total Revenue
Therapy wise share in Total Revenue FY18 FY19 FY20 FY21 FY22 FY23 FY24 ANTI-INFECTIVES 17.7 15.8 15.9 13.2 14.7 15.0 15.3 CARDIAC 10.1 10.8 11.5 12.6 12.1 12.8 13.9 GASTRO INTESTINAL 12.3 11.5 11.4 11.3 10.9 10.8 10.5 RESPIRATORY 7.6 8.0 8.7 7.2 9.7 9.5 8.5 PAIN / ANALGESICS 6.0 6.4 6.1 5.4 5.4 5.0
Slide 32: Shareholding Pattern
BSE Ticker 543904 1.5% 2.7% 7.4% NSE Symbol MANKIND 13.6% Market Cap. (INR Crore)* 85,303 % Free Float 25.1 Free Float Market Cap. (INR Crore) 21,437 74.9% Shares Outstanding (Crore) 40.06 Industry Pharmaceuticals Promoters FPI & Bodies Corporate Mutual Funds Retail Others Shareholding Pattern as on
Slide 33: Q1 FY25 Earnings Call Details
Date 31 July, 2024 Time 06:00 PM IST Dial – In Details Universal Access Numbers +91 22 6280 1120 / +91 22 7115 8003 https://services.choruscall.in/DiamondPassRegistration/register?confirm Diamond Pass ationNumber=1947267&linkSecurityString=c68f67ec4 33
Slide 34: Annexures: Formulae for ROE and ROCE
• ROE = (Profit for the year) / (average total equity less cash) o Profit excludes interest income and gain on current investments measured at FVTPL • Adjusted ROE = (Adjusted profit for the year) / (average adjusted total equity less cash) o Profit excludes any M&A related impact, interest income a
Slide 35: Thank You
Thank You For more information please visit our website: https://www.mankindpharma.com For specific queries, contact: Abhishek Agarwal Investor Relations – 011 – 46846700 Ext. 3532 Investor.relations@mankindpharma.com