Cipla announces Q2 FY19 results demonstrating continued momentum across branded markets and progress on US pipeline

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Mumbai, November 11, 2018: Cipla Limited (BSE: 500087, NSE: CIPLA) today announced its unaudited consolidated financial results for quarter ended September 30, 2018.

Key highlights of the quarter

  • R&D investments at ~INR 316cr / ~8% of sales
  • Continued growth momentum: Growth in private market [non-tender] segments continues strong across India, the US, South Africa and Emerging Markets
  • US business sales trajectory improves with 12% YoY growth driven by contribution from new launches. 7 new approvals in the quarter with multiple limited competition assets getting launched
  • Quality Focus: Inspection at Goa plant concludes with minor procedural observations

TS:

India1

  • As per IQVIA (IMS) Q2’18, Cipla continued its outperformance growing by 14%
  • Performance in key therapeutic areas as follows
  • Cipla gained one Rank in Cardiology and now stands at 4th position growing

500bps higher than market at 19%

  • Continued leadership position in Respiratory growing at 23%. Cipla’s flagship

inhalation awareness campaign “Berok Zindagi’on a good start

  • Urology maintained its leadership position with over 15% market share

SAGA – SOUTH AFRICA, SUB-SAHARAN AFRICA AND GLOBAL ACCESS2

  • As per IQVIA (IMS) MAT Aug’18, South Africa business grew at more than double the market at 14% in the private market vs 5% market growth
  • As per YTD Aug IQVIA (IMS) data, Cipla became the 3rd largest pharma company in SA private market with 6.3% share
  • Closed the Mirren acquisition; working towards successfully integrating the business and driving synergies in fast-growing OTC space
  • Successful IPO and listing of Cipla’s subsidiary CiplaQCIL on the Uganda Stock Exchange

NorthNORTHAmerica AMERICA

  • DTM [Direct to Market] business saw continued improvement in gross margin through increased contribution from differentiated launches
  • 7 approvals in Q2 including Atazanavir, Diclofenac gel and Albendazole
  • 5 ANDAs filed during the quarter; on track for 20+ filings in FY19

EUROPE & EMERGING MARKETS

Europe & Emerging Markets

  • Biosimilars franchise in the EM: Late stage discussions on-going for various key biosimilar assets across multiple markets
  • Signed a commercializing deal for Bevacizumab in Sri Lanka and Nepal.
  • Inaugurated Cipla Maroc facility
  • FPSM (Fluticasone propionate / Salmeterol) launched in Italy with substitutability status

CONSOLIDATED PROFIT & LOSS STATEMENT

  CONSOLIDATED       Q2FY19     Q2FY18     Y-o-Y     Q1FY19     Q-o-Q    
                           
  (IND AS) In INR Cr               Growth         Growth    
                                             
  Total Revenue from Operations   4,012   4,082     -2%         3,939     2%      
  EBITDA         753     804       -6%         726     4%      
  % of Income from Operations   18.8%   19.7%                 18.4%              
  PAT         377     423       -11%         451     -16%      
  % of Income from Operations   9.4%   10.4%                 11.5%              
Financial numbers are rounded off                                                
EBITDA Build-up                                                        
                                                               
  INR Cr                             Q2FY19       Q2FY18     Q1FY19    
  Profit Before Tax                             509         573     620      
  Add:                                                        
                    Finance Costs   44         42     35      
    Depreciation, Amortisation & impairment Expense   282         302     241      
  Less:                                                        
    Finance, investment & Divestitures related income           113     170      
      82                  
  EBITDA                             753         804     726      
  EBITDA % to Sales                             18.8%       19.7%     18.4%      
Financial numbers are rounded off                                                
  BUSINESS-WISE SALES PERFORMANCE                                          
                                                           
    Business (In INR Cr.)     Q2FY19     Q2FY18       Y-o-Y       Q1FY19       Q-o-Q      
                  Growth               Growth      
                                                       
                                                               
  India (Rx + Gx) 1,644       1,645       0%         1,544     6%      
  North America$ 758         618       23%         670     13%      
  SAGA# 754         922       -18%         835     -10%      
    South Africa^     503         517       -3%         578     -13%      
  Emerging Markets 472         454       4%         469     1%      
  Europe 141         151       -7%         134     5%      
  API 171         212       -19%         200     -14%      
  Others* 72         80       -10%         87     -18%      
    Total     4,012       4,082       -2%         3,939     2%      
                                                               

 

  • Includes South Africa, Sub-Saharan and Cipla Global Access business, excludes SA Animal Health ^ Excluding SA Animal Health

* Includes CNV business, Vet (India and SA Animal Health) and other elements of Revenue

BALANCE SHEET

    Key Balance Sheet Items (In INR Cr.)     Sep-18     Mar-18  
                   
  Equity   15,091   14,582  
  Total Debt   4,653   4,098  
  Inventory   4,160   4,045  
  Cash and Cash Equivalents*   2,446   2,058  
  Trade Receivables   3,971   3,102  
  Net Tangible Assets   5,715   5,829  
  Goodwill & Intangibles   5,182   5,103  
  * Includes current investment and excluding unclaimed dividend balances          

 

EARNINGS CONFERENCE CALL

 

The Company will host an Earnings conference call at 1530 hrs IST (1800 hrs SST/HKT, 1000 hrs BST, 0500 hrs US ET), during which the leadership team will discuss the financial performance and take questions. A transcript of the conference call will be available at www.cipla.com. Kotak Institutional Equities will host the call.

 

Earnings Conference Call Dial-in Information November 5, 2018 at
Date and Time 1530 – 1630 hrs IST
  1800 – 1900 hrs SST/HKT
  1000 – 1100 hrs BST
  0500 – 0600 hrs US ET
Dial-in Numbers    
Universal Access Primary Access: (+91 22 6280 1214)
    (+91 22 7115 8115)
Local Access Available all over India: (+91 7045671221)
   
Toll-free Number USA: 1 866 746 2133
  UK: 0 808 101 1573
  Hong Kong: 800 964 448
  Singapore: 800 101 2045

 


Corporate Comm India(CCI NewsWire)