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

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)