Morepen Labs Reports Growth-filled Fourth Quarter to Close FY 2017-18 with a 25 Per cent Rise in its Net Profit

New Delhi, May 18, 2018:

Highlights 12M FY 2017-18 (Consolidated)

• Net profit rises by 25 per cent at Rs. 29.59 Crore.
• Net Sales Revenue up by 1.9 per cent at Rs. 598 crore.
• Domestic sales up by 21.3 per cent at Rs. 414 crore.
• The overall Home Diagnostic category grows by 34 per cent at Rs. 103.35 crore.
• Blood Pressure Monitors and Blood Glucose Monitors records highest growth on annual basis @ 75 percent and 38 percent respectively.
• Annual interest cost fell by 43 per cent at Rs. 4.36 crore. The company’s aim to become a Zero Debt company by June-July, 2018.
• USFDA clears Morepen’s anti-asthma bulk drug Montelukast Sodium for sale in the US market.
• The company entered into a tie-up with Vésale Pharma International of Belgium to strengthen its position in the Rs. 1000 crore probiotics market in India.
• Improved Home Diagnostics’ sales revenue, better Cost Control, Higher EBIDTA, higher Cash profit and lower Interest cost aids in strengthening bottom line further in yet another consecutive financial year.

Highlights Q4 FY 2017-18 (Consolidated)

• Net Sales Revenue up by 10.7 per cent at Rs. 169 crore backed by improved sales revenue from Home Diagnostics, Formulations and OTC Businesses.
• Domestic sales up by 52 per cent at Rs. 122 crore.
• EBIDTA rises by 24 per cent at Rs. 18.13 crore.
• Net Profit after tax marginally down by 4 per cent at Rs. 6.75 crore.
• Montelukast records highest growth amongst bulk drugs in the quarter @ 38 per cent followed by Rosuvastatin @ 11 per cent.
• Blood Pressure Monitors’ quarterly sales jump up by a whopping 57 per cent & Blood Glucose Monitors by 26 per cent.
• Interest cost for the quarter falls further by 35 per cent @ Rs. 81 lakhs only.

Morepen Laboratories Ltd. has reported a 25 per cent rise in its consolidated net profit at Rs. 29.59 crore for the financial year 2017-18. The net profit in the previous financial year i.e. FY 2016-17 stood at Rs. 23.63 crore. The consolidated net sales revenue for the whole year stood at Rs. 598 crore registering a marginal increase of 1.9 per cent over previous year’s sales of Rs. 586.41 crore.

During FY 2017-18, domestic sales were up by 21.3 per cent at Rs. 414 crore and export sales were down by 25 per cent at Rs. 183.66 crore. EBIDTA in FY 2017-18 increased by around 5 per cent at Rs. 68.45 crore, annual interest cost fell by 43 per cent at Rs. 4.36 crore and cash profit increased by around 11 per cent at Rs. 64.09 crore. The company aims to become a zero debt company by June-July’ 2018. Blood Pressure Monitors and Blood Glucose Monitors recorded highest growth on annual basis @ 75 percent and 38 percent respectively. The combined sales revenue of Blood Glucose Monitors and Blood Pressure Monitors in FY 2017-18 increased to Rs. 86.57 crore as compared to Rs. 59.26 crore in the previous fiscal, registering a growth of 46 per cent. The company has touched a base of two million installations of Glucometers in FY 2017-18 and sold 68 million strips during the year against 48 Millions of last year.

This was disclosed by Mr. Sushil Suri, Chairman and Managing Director, Morepen Laboratories Ltd., after the Q4 and FY 2017-18 results board meeting here on Wednesday.

Synopsis of FY 2017-18 – Q4 & 12M Performance (Consolidated)

Rs. in Crores

	Q4			12M
Particulars	FY 2016-17	FY 2017-18	% Growth	FY 2016-17	FY 2017-18	% Growth
Net Sales Revenue	153.01	169.31	10.7%	586.41	597.75	1.9%
Total Revenue	158.03	171.58	8.6%	599.19	610.23	1.8%
Expenditure	141.36	153.45	8.5%	534.01	541.78	1.5%
EBIDTA	16.67	18.13	24%	65.18	68.45	5%
Interest	1.25	0.81	(35.4%)	7.65	4.36	(43%)
Cash Surplus	15.42	17.32	12.3%	57.53	64.09	11.4%
Net Profit	7.00	6.75	(4%)	23.63	29.59	25%

 

In the Fourth quarter (Q4) of FY 2017-18, consolidated net profit was lower by 4 per cent at Rs. 6.75 crore as compared to Rs. 7 crore profit in the corresponding quarter of previous fiscal. However, EBIDTA in Q4 FY 2017-18 increased significantly by 24 per cent at Rs. 18.13 crore and interest cost fell further by 35 per cent at Rs. 81 lakhs only. The consolidated Net Sales Revenue for Q4 FY 2017-18 increased by 10.7 per cent at Rs. 169 crore backed by improved sales revenue from home diagnostics, formulations and OTC  businesses. The company’s expanding domestic reach assisted in achieving a higher topline in Q4 FY 2017-18. Domestic sales registered a growth of 52 per cent in Q4 at Rs. 122 crore. Exports sales, however, registered a decline of 35 per cent at Rs. 47 crore.

The bulk drugs (API) segment contributed around 60 per cent to the company’s total turnover in Q4 FY 2017-18. Morepen Lab’s bulk drug Montelukast Sodium has once again emerged as a growth accelerator for the company in Q4 FY 2017-18, followed by Rosuvastatin. Sales from Montelukast Sodium increased by 38 per cent in Q4 at Rs. 28.33 crore and sales from Rosuvastatin increased by 11 percent .

The Dr. Morepen basket, representing Home-Diagnostics category, did well during the quarter. In this category, Blood Pressure Monitors registered a maximum growth of 57 per cent in Q4 FY 2017-18 sales followed by Blood Glucose Monitors which recorded a growth of 26 percent. Looking at increasing incidence of diabetic cases in India, the Blood Glucose Monitors and Blood Pressure Monitors segment offers great opportunity for growth in the coming years. Total quarterly sales from this division stood at Rs. 24.71 crore in Q4 FY 2017-18, registering a rise of 29 per cent vis-a-vis corresponding quarter of the previous fiscal. The entire “Dr. Morepen” brand portfolio has recorded sales revenue of Rs. 77.01 crore in the quarter under consideration as against revenue of Rs. 57.25 crore in the corresponding quarter of the previous fiscal, recording a growth of 35 per cent. Sales from OTC (Over the Counter) products, comprising Burnol & Lemolate, went up by 21 per cent and from  Formulations business by 44% in Q4 FY 2017-18.

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