Zydus Lifesciences Limited · NSE:ZYDUSLIFE
Zydus Lifesciences — Q2 FY24 Earnings Presentation
17 slides from Zydus Lifesciences's earnings presentation, Nov 7, 2023
Slide 1: Exchange filing cover letter
November 7, 2023 Listing Department Code: 532321 BSE LIMITED P J Towers, Dalal Street, Mumbai–400 001 Listing Department Code: ZYDUSLIFE NATIONAL STOCK EXCHANGE OF INDIA LIMITED Exchange Plaza, C/1, Block G, Bandra Kurla Complex, Bandra (E), Mumbai–400 051 Re: Investor Presentation Dear Sir, Please
Slide 2: Zydus Lifesciences Earnings Presentation: Q2 FY24
zyd us Dedicated To Life Zydus Lifesciences Limited Earnings Presentation: Q2 FY24 7th November, 2023 1
Slide 3: Disclaimer and Safe Harbor Statement
Disclaimer and Safe Harbor Statement zyd~ Dedicated To Life • THIS PRESENTATION (PRESENTATION) IS NOT AN OFFER TO SELL ANY SECURITIES OR A SOLICITATION TO BUY ANY SECURITIES OF ZYDUS LIFESCIENCES LIMITED OR ITS SUBSIDIARIES OR JOINT VENTURES (TOGETHER, THE “COMPANY”). The material that follows is a
Slide 4: Q2 FY24: At a Glance
Q2 FY24: At a Glance Revenues from Highlights of Q2 FY24 R&D Operations ❑ Total revenues grew 9% YoY, led by US, EM& EU formulations and API Rs. 43,688 mn Rs. 3,225 mn businesses. 9% YoY 7.4% of revenues ❑ Branded formulations business in India grew in high single digit after adjusting for NLEM impa
Slide 5: Key Financial Metrics (1/2)
Key Financial Metrics (1/2) Total Revenues (Rs. mn) Gross Profit (Rs. mn) and Gross Margin % 60.2% 64.5% 66.2% 67.4% 66.3% 50,106 51,396 34,652 33,146 42,571 43,688 28,950 40,055 27,468 24,111 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Total R&D (Rs. mn) and % to
Slide 6: Key Financial Metrics (2/2)
Key Financial Metrics (2/2) PAT ex. Exceptional (Rs. mn) Organic Capex (Rs. mn) 11,011 8,979 2,554 8,007 2,157 2,203 2,162 2,040 6,229 5,225 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Net Debt/ EBITDA Net Working Capital* (Rs. mn) 63,906 56,290 57,051 55,833 0.18
Slide 7: India Formulations business
India Formulations business Branded business sustained momentum despite delayed seasonality Highlights for the quarter India Formulations Sales (Rs. mn) Q2 FY24 Revenue Contribution ▪ Branded business grew in high single digit despite 12,648 12,896 13,341 delay in acute season onset. 12,316 12,270 G
Slide 8: Consumer Wellness
Consumer Wellness Strong brand equity to aid recovery ahead Highlights for the quarter Consumer Wellness Sales (Rs. mn) Q2 FY24 Revenue Contribution 7,075 6,936 ▪ Personal care segment, which comprises of Nycil® and EverYuth® brands, registered robust growth, 4,352 driven by favorable season in many
Slide 9: US Formulations business
US Formulations business Base business performed on expected lines Highlights for the quarter US Formulations Sales (Rs. mn) Q2 FY24 Revenue Contribution 24,541 ▪ QoQ decline was on account of reduction in revenues 22,525 of a limited competition product, in line with the 19,250 18,648 17,084 expect
Slide 10: Emerging Markets & Europe Formulations business
Emerging Markets & Europe Formulations business All key markets continued to display strong momentum Highlights for the quarter EM & EU Formulations Sales (Rs. mn) Q2 FY24 Revenue Contribution ▪ The business continued its growth journey and 4,893 4,393 4,504 posted a robust 17% growth YoY. 3,849 3,7
Slide 11: Updates on Innovation (1/2)
Updates on Innovation (1/2) NCE: ZYIL1 (NLRP3 inhibitor) • Initiated Phase II clinical trials in patients with ALS. • ALS is a rare, progressive and fatal neurodegenerative disease, with an average life expectancy of 3 to 5 years from the time of symptom onset. • Already established proof-of-concept
Slide 12: Updates on Innovation (2/2)
Updates on Innovation (2/2) Biotech R&D • Completed clinical trials for one mAb and completed recruitment of patients for clinical trials for another mAb. • Received regulatory approval to initiate Phase III clinical trials for one more product. Specialty Initiatives • Received final approvals from
Slide 13: ESG Initiatives: Following a holistic philosophy of sustainability
ESG Initiatives: Following a holistic philosophy of sustainability Overview of initiatives undertaken in FY23 to turn ESG principles into actions • 12% reduction in GHG emissions over FY22 • Creation of an inclusive work place which promotes • Renewable energy consumption up 53% over FY22 gender div
Slide 14: Zydus at a Glance
Zydus at a Glance ~$2.15 bn Global Revenues1 5th Largest generic Co. in US in terms of prescription3 7 R&D Centers For NCE, APIs, Gx formulations, Biosimilars and Vaccines Among 1st Revenues from India Approved product for >40% In ~60% of product Geography (Formulations Top 3 families marketed in US
Slide 15: Consolidated Financial Performance (reported)
Consolidated Financial Performance (reported) Q2 Q2 YoY Q1 QoQ H1 H1 YoY Rs. mn FY24 FY23 gr. FY24 gr. FY24 FY23 gr. Total Income from Ops. 43,688 40,055 9.1% 51,396 -15.0% 95,084 79,698 19.3% Gross Contribution (GC) 28,950 24,111 20.1% 34,652 -16.5% 63,602 48,661 30.7% Gross Margin % 66.3% 60.2% 67
Slide 16: Details of Exchange Rate Fluctuations
Details of Exchange Rate Fluctuations Q2 Q2 YoY H1 H1 YoY Rs. mn FY24 FY23 gr. % FY24 FY23 gr. % A. On operating transactions (above EBITDA line) -853 -1,372 37.8% -579 -2,541 77.2% a. Included in COGS -31 -80 61% -28 -165 83.2% b. Part of other operating expenses (shown separately) -822 -1,292 -551
Slide 17: Thank you
Thank you For any queries, please contact Arvind Bothra Arvind.Bothra@zyduslife.com +91-22-62711905 For more information, please visit: www.zyduslife.com Registered Office: www.linkedin.com/company/zyduslife Zydus Corporate Park, Scheme No. 63, Survey No. 536, Khoraj (Gandhinagar), Nr. Vaishnodevi C