Slide 1: Q1FY24 Earnings Presentation
Q1FY24 Earnings Presentation 11th August 2023
Slide 2: Safe Harbor
Safe Harbor Certain statements in this presentation concerning our future growth prospects are forward looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The company's results may
Slide 3: Table of Contents
Q1FY24 Financial and Business Highlights Table of Contents About Marksans Pharma Marksans Pharma is India’s leading pharmaceutical company specializing in the research, manufacturing, and marketing of Roadmap for the future generic pharmaceutical formulations ESG 3
Slide 4: Q1FY24 Business & Financial Highlights
Q1FY24 Business & Financial Highlights
Slide 5: Management Commentary
Management Commentary “We have had a strong start to FY24, with our revenue crossing INR 5 bn in the first quarter, reflecting our commitment to strengthening our OTC portfolio. We continue to experience an increase in wallet size from existing customers which reinforces our strong capabilities and
Slide 6: Financial Highlights Q1FY24 – YoY Performance
Financial Highlights Q1FY24 – YoY Performance YoY Growth ₹ Cr. Q1FY24 Q1FY23 % YoY Performance Revenue growth is being driven by market share increases Revenue 500.0 433.8 15.3% and new launches in the UK and Europe, the US, Australia, and New Zealand regions Gross Profit 257.3 218.9 17.5% Gross Pro
Slide 7: Financial Highlights Q1FY24 – QoQ Performance
Financial Highlights Q1FY24 – QoQ Performance QoQ Growth ₹ Cr. Q1FY24 Q4FY23 % QoQ Performance Revenue growth is driven by share gains with existing Revenue 500.0 486.0 2.9% customers and markets Gross Profit 257.3 242.1 6.3% Gross Profit improved mainly on account of better product mix and reductio
Slide 8: Other Highlights
Other Highlights Revenue from operations in Q1FY24 is at Rs 500.0 cr. , out of which US revenues is at Rs 193.3 Cr. , UK and Europe revenues at Rs 225.9 Cr., and Australia and New Zealand revenues at Rs 58.6 Cr. Cash Balance at the end of 30th June 2023 is at Rs 636 cr. in Q1FY24 Research & Developm
Slide 9: Q1FY24 Financial Trends
Q1FY24 Financial Trends Operating Revenue (₹ Cr.) Gross Profit (₹ Cr.) & Gross Profit Margin (%) 50.5% 50.7% 50.1% 49.8% 51.5% 49.4% 229.4 240.3 257.3 218.9 242.1 206.4 479.8 486.0 500.0 418.1 433.8 452.6 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 EBITDA (₹ C
Slide 10: Q1FY24 Revenue split by Market
Q1FY24 Revenue spilt by Market USA UK and Australia RoW Regions Europe and New Zealand % of total Operating 38.7% 45.2% 11.7% 4.4% Revenues YoY Revenue -15.4% 11.2% 24.8% 11.4% Growth • Revenue from the USA • Revenue from the UK and Europe • Revenue from the Australia • Revenue from RoW region in re
Slide 11: Segmental Mix
Segmental Mix Therapeutic Segment-Wise Split Segment Revenue Split 6.8% 8.2% 11.7% 13.9% 12.7% 14.6% 7.5% 8.3% 8.6% 7.3% 6.6% 8.5% 6.0% 1.6% 44.1% 8.8% 20.6% 18.4% 10.9% 51.0% 3.6% 8.1% 54.7% 58.6% 11.7% 6.0% 11.4% 68.6% 6.3% 6.7% 14.0% 74.4% 9.0% 8.5% 12.4% 13.8% 13.1% 9.0% 9.2% 15.4% 15.4% 14.5% 5
Slide 12: Consolidated Profit and Loss Statement
Consolidated Profit and Loss Statement Particulars (₹ cr.) Q1FY24 Q1FY23 Q4FY23 YoY QoQ FY23 FY22 YoY Operating Revenue 500.0 433.8 486.0 15.3% 2.9% 1,852.1 1490.8 24.2% Gross Profit 257.3 218.9 242.1 17.5% 6.3% 930.8 774 20.3% Gross Margin % 51.5% 50.5% 49.8% 95 bps 165 bps 50.3% 51.9% -170 bps EBI
Slide 13: About Marksans Pharma
About Marksans Pharma
Slide 14: Marksans Pharma - At a Glance
Marksans Pharma - At a Glance Market Reach Accreditations Cash in hand Global footprint- Present in 50+ countries USFDA, UK MHRA, Australian Cash position of ₹636 cr. and a net debt- ~96% revenue generated from the regulated TGA, EU, Health Canada and free position as of 30th June 2023 markets of th
Slide 15: Manufacturing Capabilities
Manufacturing Capabilities Manufacturing Facility in Southport, UK • Manufactures non-sterile liquids, ointments and powder sachets UK • Supplies to UK, West Africa & Middle East • Spread across 7,300 sq. meters C A PAC I T Y ACC R E D I TAT I O N S 2 bn bottles per annum 1 bn tubes per annum 1 bn s
Slide 16: Business Structure
Business Structure Supply and Distribution through a network of subsidiaries 100% 100% 60% 100% 100% 100% 100% Distribution of Engaged in the business quality generic of marketing of Manufactur 162+ pharma medicines in the UAE er of OTC product Manufacturer of range of OTC & Rx and neighboring Liqui
Slide 17: OTC Store Brand Retailers/Customers
OTC Store Brand Retailers/Customers • In the OTC Segment, Marksans manufactures store brands (private label manufacturing) for retailers/customers and manufactures OTC products through its own label as well. • The company has more than 1500+ SKUs and 300+ products • Marksans is a preferred store bra
Slide 18: High Growth Trajectory
High Growth Trajectory Operating Revenue (₹ Cr.) EBITDA (₹ Cr.) Net Profit (₹ Cr.) Segmental Revenue Mix (%) 1,852.1 265.3 339.3 58% 74% 767.2 42% 44.7 26% 11.3 FY17 FY23 FY17 FY23 FY17 FY23 FY17 FY23 Rx OTC ROE (%) ROCE (%) Net Debt to EBITDA (%) Fixed Asset Turnover Ratio (x) 17.8% 18.8% 3.7 1.9 2
Slide 19: Roadmap for the future
Roadmap for the future
Slide 20: Roadmap for the future
Roadmap for the future Consistent Growth in Topline and Profitability Strengthening the OTC Business Backward Integration for sustained Supplement growth through Continued product launches through • Aim to capture a significant part margin development acquisitions a healthy product pipeline of the m
Slide 21: The OTC Opportunity (1/2)
The OTC Opportunity (1/2) Global OTC Drugs Market ($ Bn) • In 2022, the OTC market grew by 10.4% YoY to achieve total 210 global sales of $176 billion. 176 • North America and Western Europe have the highest market shares • North America OTC holds around ~25% of total global sales 106 • Robust growt
Slide 22: The OTC Opportunity (2/2)
The OTC Opportunity (2/2) Category Value Share • According to IQVIA, Cough and cold and Respiratory, Pain Relief, Nutrition, Gastrointestinal, Dermatology, and Allergy are the Nutrition 22.1% largest OTC therapeutical segments globally according to total OTC Gastrointestinal 15.7% sales • Marksans i
Slide 23: Continued product launches through a healthy product pipeline
Continued product launches through a healthy product pipeline Strong product pipeline followed by successful launches led by continued focus on R&D • Planned 34 new filings over the next three years • In addition, 16 products are already filed and awaiting • 10 products are in the pipeline approval
Slide 24: Key Product Launches
Key Product Launches Brand Composition Therapy Segment Market LOSARTAN LOSARTAN 25 MG, 50 MG, 100 MG TABLETS Anti-Diabetic UK ONDANSETRON ONDANSETRON 4MG, 8 MG TABLETS Gastrointestinal UK CARVEDILOL CARVEDILOL 3.125 MG, 6.25 MG, 12.5 MG, 25 MG TABLETS Cardiovascular System(CVS) UK TRAMADOL TRAMADOL
Slide 25: R&D Capabilities
R&D Capabilities R&D Centers R&D (₹ Cr.) and R&D % to sales Expected to increase to ~4-5 % over the next few years 35.0 4.0% 1.5% 2.0% 1.6% 1.7% 1.4% Southport, United Kingdom 30.0 0.6% 0.6% 0.7% 2.0% 30.2 29.5 25.0 0.0% Farmingdale, United States 20.0 -2.0% Navi Mumbai, India Goa, India 18.9 15.0 -
Slide 26: Investment Rationale
Investment Rationale Follows calibrated inorganic growth approach: Marksans Funding through strategic Pharma has a proven record of investors and promoters: Headroom for Significant successful and capital-efficient Orbimed and Promoters fund Multiple Expansion acquisitions and creating a unique infu
Slide 27: ESG
ESG
Slide 28: ESG
ESG Provided Covid-19 Provided Covid-19 related, antibody testing, and other medical requirements like Relief Supplies medicines , sanitizers, masks, gloves and PPE kits to the frontline workers in Goa Free Food To Needed Joined hands with NGO’s to serving meals, ration, grocery kits for migrant fam
Slide 29: Thank you
Thank you For more information please contact: Jitendra Sharma Corporate Office (CFO) 11th Floor Grandeur, Off Veera Desai Road, Opp Gundecha Symphony, Andheri (W), Marksans Pharma Ltd Mumbai – 400 053, Maharashtra - India Tel: +91 022 40012000 jitendra@marksanspharma.com © 2020 Marksans Pharma Limi