Hester Biosciences Ltd : Latest Quarterly Results Analysis

Pharmaceuticals company Hester Biosciences announced Q2FY24 & H1FY24 results:

1. Financial Performance:

• Q2FY24:
  • Revenue from Operations: Rs 704.55 crore, down 4% YoY
  • EBITDA: Rs 132.12 crore, up 4% YoY
  • Profit after Tax (excl. OCI): Rs 40.41 crore, down 39% YoY
  • Earnings Per Share (EPS): Rs 4.75, down 39% YoY
• H1FY24:
  • Revenue from Operations: Rs 1,583.08 crore, up 28% YoY
  • EBITDA: Rs 275.75 crore, up 37% YoY
  • Profit after Tax (excl. OCI): Rs 107.51 crore, up 6% YoY
  • Earnings Per Share (EPS): Rs 12.64, up 6% YoY

2. Division Performance:
-  Animal Healthcare division experienced a 16% decline in sales in Q2FY24 due to uneven sales of the Goat Pox Vaccine.
- Poultry Healthcare division saw a 4% decrease in overall sales in Q2FY24, with a growth in domestic vaccine sales, but a reduction in export sales.
- Petcare division achieved impressive performance, growing 98% in Q2FY24.

3. Subsidiary Performance:
- Hester Nepal had a turnover of Rs 7.28 million in Q2FY24, primarily from domestic sales of vaccines, with an overall net loss of Rs 7.05 million.
- Hester Africa continued export sales but faced an overall loss of Rs 49.17 million due to foreign exchange fluctuations.
- Hester's share of profit in the joint venture entity, Thrishool Exim Limited (Tanzania), increased by 9.86 million in Q2FY24.

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Pharmaceuticals company Hester Biosciences announced Q4FY23 & FY23 results:

Standalone Q4FY23 & FY23:

• Overall gross profit margin reduced by 1% due to the change in product mix between vaccines and health products, health products sales having gone up.
• Operating EBITDA increased with the increase in sales.
• The reduction in EBITDA margin was due to the reduction in Gross Profit margin, accompanied by higher market development costs in animal health division and the new pet division
• Q4 PAT margin benefited from lower finance costs due to the reversal of unrealized forex loss of Rs 6.46 million on the translation of USD loan in Q4FY23, as against a loss of Rs 5.31 million in Q4FY22. Consequently, PAT increased by 27% from Rs 49.48 million to Rs 62.63 million.

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Pharmaceuticals firm Hester Biosciences announced Q3FY23 results:

• Standalone Q3FY23 results:
  • Gross margins:
    • There has been an improvement in the margins of health products in poultry healthcare and animal healthcare divisions.
    • There has been a write-off of Rs 16 million of expired vaccine stocks in the poultry healthcare division.
    • The overall impact has been a reduction of gross margins by 3% in Q3.
  • PAT margin declined due to unrealized MTM losses of Rs 24.40 million on the translation of US $ loan, included in finance costs.
• Consolidated Q3FY23:
  • Results also include operations of subsidiaries in Nepal and Tanzania.
  • Hester Nepal had a turnover of Rs 52.62 million with an overall net profit of Rs 24.87 million during Q3FY23.
  • Profit in Q3 grew with the improved profitability of Hester India, Hester Nepal and Hester’s share in the joint venture entity, Thrishool Exim Limited.
  • In Hester Africa, market authorization has been received from Tanzania Medicines and Medical Devices Authority (TMDA) for two important ruminant vaccines, Lumpy Skin Disease and CBPP.
  • Hester Nepal has received a manufacturing license and marketing authorization for two additional vaccines, Live LASMAS and Inactivated Coryza .

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Pharmaceutical company Hester Biosciences announced Q2FY23 results:

• Q2FY23 & H1FY23:
  • Standalone revenue is up by 27% and 6% for Q2FY23 and H1FY23
  • Consolidated revenue is up by 17% and 1% for Q2FY23 and H1FY23

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  Pharmaceuticals firm Hester Biosciences announced Q1FY23 Result :

• Q1 FY23 Standalone revenues down 14%, Consolidated revenues down 16%
• Consolidated results also include operations of subsidiaries at Nepal and Tanzania.
• Hester Nepal has registered 16% growth in domestic revenues, however, there were no tender sales in the current quarter due to delay in tendering by FAO and other multilateral institutions.
• Hester Tanzania has just started commercial operations and recently received regulatory approvals for four products with two additional products under approval process. Revenues are expected to start in Q2. 

Result PDF

Pharmaceuticals firm Hester Biosciences declares Q4FY22 result:

• FY22 Standalone revenues up 5%, Consolidated revenues up 10%
• FY22 Standalone PAT down 1%, Consolidated PAT up 14%
• The sales of vaccines declined by 20% in Q4FY22, but grew by 5% in the year FY22. Sales in the corresponding Q4 of FY21 was benefitted by a major disease outbreak in the poultry industry which led to a one-time spurt in demand for poultry vaccines. The current year did not experience any such disease outbreak. Further, during the current year, the poultry farm economics also turned adverse due to rise in feed costs and decline in end-product prices. Inspite of a large base effect and adverse demand environment, Hester posted 5% growth in vaccine sales for FY22.
• The sales of health products registered growth of 29% in Q4FY22 and 44% in the year FY22, largely driven by new product introductions and geographical expansion.
• Revenue from operations for Q4FY22 included one-time license and services fees of INR 2 million and for whole year FY22 it included a total of one-time license and service fees of INR 38.49 million as against the one-time license and service fees of INR 68.58 million and INR 175.73 million respectively for the corresponding earlier periods.
• The consolidated performance mainly includes the impact of the turnaround at Hester Nepal. Hester Nepal has seen a growth of 193% in FY22 sales and a net profit of INR 22.86 million in FY22 as against a loss of INR 9.73 million in FY21. We expect to achieve further increase in sales during the coming year upon the commencement of supplies under the FAO tenders for the PPR vaccine. Nepal’s domestic market is also building up for our live and inactivated vaccines.
• Hester Africa has received the regulatory approvals for the manufacturing of PPR and CBPP vaccines. The production of these vaccines has commenced and are meeting the quality parameters. The impact of its sales will be seen in FY23. This project will enable Hester to become a leading player in Africa and contribute significantly towards the social as well as economic growth of the African continent, besides adding to the top-line and bottom-line of Hester.

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Pharmaceuticals and Biotechnology company Hester Biosciences announced Q3FY22 results:

• Domestic sales have registered a growth of 3% in Q3 FY22, and 24% in 9M FY22.
• Exports have increased by 88% in Q3 FY22 and 14% in 9M FY22.
• Overall, the sales grew by 2% in Q3 FY22, and 16% in 9M FY22, as compared to the corresponding period(s).
• The revenue during the corresponding previous quarter (Q3 FY21) included a one-time license fee and services of Rs 33.12 million against which there is no income in the current year. This has an impact of 6% on margins during that period.
• Overall, the sales of vaccines have remained the same in Q3 FY22, but have registered a growth of 16% in 9M FY22. Last year around Q2, Q3, and Q4, there were major disease outbreaks in the poultry industry which led to a spurt in the demand for poultry vaccines. While our vaccines kept the poultry industry immunised from the disease in the last financial year, the overall poultry health situation has been better this year, thereby registering a normal growth.
• The sales of health products have registered a growth of 42% in Q3 FY22 and 49% in 9M FY22.

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Hester Biosciences Limited Q2 and H1 FY22 Financial Highlights:

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