Recordati S.p.a. · MIL:REC
Recordati — Q1 2024 Earnings Presentation
20 slides from Recordati's earnings presentation, May 9, 2024
Slide 1: First Quarter 2024 Results
FIRST QUARTER 2024 RESULTS Milan, May 9th 2024
Slide 2: Speakers
SPEAKERS Rob Koremans Luigi La Corte Chief Executive Chief Financial Officer Officer 2
Slide 3: Strong Start to the Year Across the Business
STRONG START TO THE YEAR ACROSS THE BUSINESS ▪ Q1 2024 results show a very strong start to the year, with Net Revenue at € 607.8 million, +10.2% vs PY or +10.9% like-for-like1 at CER (+6.3% ex Türkiye); adverse FX impact in Q1 2024 of € 31.2 million (-5.7%), mostly from Turkish lira, offset by price
Slide 4: Specialty & Primary Care: Continued Organic Growth with Urology Accelerating
SPECIALTY & PRIMARY CARE: CONTINUED ORGANIC GROWTH WITH UROLOGY ACCELERATING Pharmaceutical Revenue Q1 2024 vs Q1 20231 Key highlights million Euro +9.3% • Robust growth of +9.3% or +10.1% like-for-like2 at CER (+2.7% excluding Türkiye) vs strong Q1 2023, continued overperformance of 395.5 promoted
Slide 5: Rare Diseases: Onco and Endo Franchises Drive Double-Digit Growth
RARE DISEASES: ONCO AND ENDO FRANCHISES DRIVE DOUBLE- DIGIT GROWTH Revenue Q1 2024 vs Q1 2023 Key highlights million Euro +13.1% • Strong double-digit growth in Q1 2024, +13.1% vs PY or +13.9% at CER, driven by key growth franchises (Onco & Endo) 197.5 • Oncology: Driven by increased penetration of
Slide 6: All Regions Delivering Solid Growth
ALL REGIONS DELIVERING SOLID GROWTH (million euro) Q1 2024 Q1 2023 Change % U.S.A 90.0 77.3 16.4 Italy 89.8 80.5 11.6 Spain 52.6 36.0 46.2 France 46.0 49.1 (6.4) Germany 41.5 41.9 (1.0) Russia, other CIS countries and Ukraine 41.2 43.3 (4.8) Türkiye 37.3 33.1 12.9 Portugal 16.1 15.6 2.7 Other C.E.E.
Slide 7: Strong Revenue and Operating Leverage Sustain EBITDA Margin at 40%
STRONG REVENUE AND OPERATING LEVERAGE SUSTAIN EBITDA MARGIN AT 40%, IN LINE WITH PRIOR YEAR (million Euro) Q1 2024 Q1 2023 Change % Revenue 607.8 551.4 10.2 Gross Profit 415.6 387.7 7.2 as % of revenue 68.4% 70.3% 1 Adjusted Gross Profit 429.9 398.9 7.7 as % of revenue 70.7% 72.4% SG&A Expenses 156.
Slide 8: EBITDA Growth and Reduced Working Capital Absorption Drive Strong Free Cash Flow
EBITDA GROWTH AND REDUCED WORKING CAPITAL ABSORPTION DRIVE STRONG FREE CASH FLOW (million Euro) Q1 2024 Q1 2023 Change EBITDA1 244.0 220.8 23.2 Movements in working capital (46.0) (77.9) 31.9 Changes in other assets & liabilities (14.9) (10.3) (4.6) Interest received/(paid) (19.4) (16.4) (3.0) Incom
Slide 9: Solid Net Financial Position – Leverage of ~1.75x LTM EBITDA
SOLID NET FINANCIAL POSITION – LEVERAGE OF ~1.75x LTM EBITDA (PRO-FORMA)3 (million Euro) 31 MAR 24 31 DEC 23 Change Cash and cash equivalents 294.7 221.8 72.9 Short-term debts to banks and other lenders (34.1) (99.9) 65.8 Loans and leases - due within one year1 (369.1) (353.7) (15.4) Loans and lease
Slide 10: On Track to Deliver on FY 2024 Guidance
ON TRACK TO DELIVER ON FY 2024 GUIDANCE FY 2023 FY 2024 Actual Target KEY ASSUMPTIONS CONFIRMED • Continued robust revenue growth momentum: o SPC to deliver mid-single digit organic growth (at CER) Revenue 2,082.3 2,260–2,320 o RRD to deliver double-digit organic growth (at CER) yoy growth +12.4% o
Slide 11: Questions & Answers
QUESTIONS & ANSWERS
Slide 12: Appendix
APPENDIX
Slide 13: Composition of Revenue
COMPOSITION OF REVENUE DIVERSIFIED PORTFOLIO AND FOOTPRINT Therapeutic Areas Geographic Total Revenue Q1 2024 Pharmaceutical Revenue Q1 2024 Rare Disease 32.5% Metabolic Specialty and Primary Care Endocrinology USA (incl. Chemicals) 67.5% 2.1% Oncology Cardiovascular 7.2% 2.7% 10.7% 6.3% 15.2% Urolo
Slide 14: Q1 2024 Cough & Cold – Good Start of the Year Below Q1 2023 Due to Adverse FX
Q1 2024 COUGH & COLD – GOOD START OF THE YEAR BELOW Q1 2023 DUE TO ADVERSE FX Cough & Cold1 – Revenue trend by quarter 2019, 2022, 2023 and 2024 million Euro 47.3 43.6 39.6 35.0 35.5 32.931.8 31.8 29.9 28.4 26.1 2019 22.823.8 2022 2023 2024 Q1 Q2 Q3 Q4 1) Includes RX and OTC products among others: P
Slide 15: Main Products Sales
MAIN PRODUCTS SALES (million Euro) Q1 2024 Q1 2023 Change % Zanidip® and Zanipress® (lercanidipine+enalapril)1 54.6 56.8 (3.9) Eligard® (leuprorelin acetate) 33.5 28.5 17.8 Avodart® (dutasteride) and Combodart®/Duodart® 27.5 - n.s. (dutasteride/tamsulosin)2 Seloken®/Seloken® ZOK/Logimax® 26.3 24.4 8
Slide 16: Q1 2024 Results by Operating Segments
Q1 2024 RESULTS BY OPERATING SEGMENTS Total Revenue Q1 2024 EBITDA1 Q1 2024 Specialty and Specialty and Primary Care (incl. Primary Care (incl. Chemicals) Chemicals) Rare Diseases 32.5% 34.8% Rare Diseases 67.5% 65.2% Margin on Revenue: Rare Diseases: EBITDA1 43.0% Specialty and Primary care: EBITDA
Slide 17: Upcoming R&D Pipeline Milestones
UPCOMING R&D PIPELINE MILESTONES PROGRAM UPCOMING MILESTONE Osilodrostat ( ) • Cushing’s Syndrome US Submit sNDA filing during Q3 2024 Pasireotide • Post-Bariatric Hypoglycaemia (PBH) Phase 2 enrollment completion by end 2024 / early 2025 ONGOING PROGRAMS Dinutuximab beta • High Risk relapsed/refrac
Slide 18: Q1 2024 Results – Adjusting Items
Q1 2024 RESULTS – ADJUSTING ITEMS Reconciliation of Net income to EBITDA1 (million Euro) Q1 2024 Q1 2023 Change % Summary of key items Net Income 123.6 124.0 (0.3) Income Taxes 37.6 36.0 Financial (income)/expenses, net 25.7 12.6 2 • FX losses of € 2.7 million in Q1 2024 vs € 0.6 million gains o/w n
Slide 19: Company Declarations, Disclaimers and Profile
COMPANY DECLARATIONS, DISCLAIMERS AND PROFILE Statements contained in this presentation, other than historical facts, are “forward-looking statements” (as such term is defined in the Private Securities Litigation Reform Act of 1995). These statements are based on currently available information, on
Slide 20: Unlocking the full potential of life
Unlocking the full potential of life. ~ RECORDATI