Marksans Pharma Results: Latest Quarterly Results & Analysis

Pharmaceuticals company Marksans Pharma announced H1FY25 & Q2FY25 results

Q2FY25 Financial Highlights:

• Operating revenue stood at Rs 641.9 crore, up by 20.8% YoY driven by strong performance across all key markets, led by US and followed by ANZ.
• Gross profit stood at Rs 383.5 crore, up by 37.7% YoY, with a gross margin expansion of 732 bps to 59.7%. Growth is attributed to continued softening of raw material prices and a better product mix.
• EBITDA stood at Rs 135.7 crore up by 19.1%, with a margin of 21.1%.
• EPS grew by 15.8% YoY to Rs 2.1.

H1FY25 Financial Highlights:

• Operating revenue stood at Rs 1,232.5 crore, up by 19.5% YoY driven by growth across all key markets, new product launches and share gains with existing customers.
  • US business grew by 33.5% YoY.
  • UK & Europe grew by 8.5% YoY.
  • Australia & New Zealand grew by 20.7% YoY.
• Gross profit came in at Rs 712.4 crore, up by 33.0% YoY, with a gross margin of 57.8%.
• EBITDA stood at Rs 264.1 crore, up by 22.3%, with an EBITDA margin of 21.4%.
• EPS grew by 21.7% YoY to Rs 4.1

Mark Saldanha, Managing Director, said: “Q2 marks a strong performance on back of a robust Q1. Growth trajectory improved further with revenue growth of 21% YoY. We are happy to share that this growth was broad based across all our key markets, led by the US market and also driven by increased market share. We continue to witness favourable raw material prices and improved product mix, thereby leading to a gross margin expansion of 732bps YoY and an all-time high quarterly EBITDA of Rs 135.7 crore. We anticipate stronger performance in the coming quarters due to our upcoming new launches, the onset of the winter season and scaling up of the TEVA facility.”

Result PDF

Pharmaceuticals company Marksans Pharma announced Q4FY24 & FY24 results:

Q4FY24 Financial Highlights:

• Operating revenue was Rs 560.0 crore, up by 15.2% YoY driven by by volume gains, new launches, addition of new customers, and increase in our share with existing customers
• Gross profit was Rs 290.2 crore, up by 19.8% YoY with a Gross margin of 51.8%
• EBITDA was Rs 109.6 crore, grew by 0.1% with an EBITDA margin of 19.6%
• EPS was at Rs 1.73 

FY24 Financial Highlights:

• Operating revenue was Rs 2,177.4 crore, up by 17.6% YoY
• US and North America business grew by 18.5% YoY
• UK and Europe grew by 22.9% YoY
• Gross profit was Rs 1,139.3 crore, up by 22.4% YoY with a Gross margin of 52.3%.
• EBITDA was Rs 458.6 crore, grew by 35.1% with an EBITDA margin of 21.1%
• EPS grew by 8.0% YoY to Rs 6.92

Mark Saldanha, Managing Director of the Company said “We are delighted to report a strong performance in FY24 in terms of both revenue and profitability. Our operating revenue for the year grew year-on-year by 18% and EBITDA increased by 35%, supported by new product launches, increase in market share, reduction in raw material prices and operating leverage. This year we have not only met but exceeded our revenue target of Rs 2,000 crore.

We remain confident on delivering sustained long-term value for our shareholders, as we position ourselves strongly in terms of infrastructure, product mix and long-term customer relationships.”

Result PDF

Pharmaceuticals company Marksans Pharma announced Q3FY24 & 9MFY24 results:

Q3FY24 Financial Highlights:

• Operating revenue reached Rs 586.1 crore, marking a robust growth of 22.2% YoY. This growth was driven by market share gains, new launches, the addition of new customers, increased share with existing customers, and incremental contributions from the acquired Teva facility.
• Gross profit amounted to Rs 313.3 crore, reflecting a substantial increase of 30.4% YoY, with a commendable Gross margin of 53.5%.
• EBITDA surged to Rs 133 crore, demonstrating a remarkable growth of 73.6%, accompanied by an impressive EBITDA margin of 22.7%.
• EPS witnessed a solid growth of 17.8% YoY, reaching Rs 1.84.

9MFY24 Financial Highlights:

• Operating revenue for 9MFY24 stood at Rs 1,617.4 crore, marking a significant growth of 18.4% YoY.
  • The US business exhibited a growth of 15.8% YoY, while the UK and Europe business saw an impressive growth of 26.5% YoY.
• Gross profit amounted to Rs 849.1 crore, representing a robust growth of 23.3% YoY, with a Gross margin of 52.5%.
• EBITDA surged to Rs 348.9 crore, marking a substantial growth of 51.9%, accompanied by a commendable EBITDA margin of 21.6%.
• EPS grew by 14.5% YoY, reaching Rs 5.19.

Business Highlights:

• In the US market, the Formulation business witnessed a growth of 15.8% YoY, driven by new product launches and an increase in the share of existing products.
• The UK and Europe Formulation business recorded revenue of Rs 710.2 crore in 9MFY24, marking a significant growth of 26.5% YoY.
• The Australia and New Zealand business reported revenue of Rs 155.5 crore in 9MFY24, marking a growth of 6.4% YoY, driven by incremental market share.
• The RoW business reported revenue of Rs 78.5 crore in 9MFY24.

Other Highlights:

• Capex incurred in 9MFY24 amounted to Rs 160.6 crore, in line with plans for scaling the acquired manufacturing unit from Teva Pharma in Goa to drive future growth.
• Cash balance as of December 31, 2023, stood at Rs 688 crore.
• Cash from Operations in 9MFY24 amounted to Rs 169.0 crore, with Free Cash Flow reaching Rs 8.4 crore.

Mark Saldanha, Managing Director of the Company said “We are thrilled to announce that we have delivered another quarter demonstrating robust performance. Our highest quarterly sales reached ~Rs 586 crore. Our dedication to delivering high-quality products has resulted in an increase in market share from existing customers and the addition of new customers. Positive momentum was observed in all our major regions. The US market grew by around 16% QoQ, mostly as a result of new product launches and the strengthening of our OTC portfolio.

Our efforts toward building capabilities and capacity for the acquired Teva Pharma manufacturing facility are on track and we have also started filing DMF for backward integration. Looking ahead, we are optimistic about our strategic initiatives which will drive our future growth and sustainable long-term shareholder value.”

Result PDF

Pharmaceuticals company Marksans Pharma announced Q1FY24 results:

• Operating revenue was Rs 500.0 crore, up by 15.3% YoY driven by market share gains in the existing products and markets
  • US business grew by 11.2% YoY
  • UK and Europe grew by 24.8% YoY
• Gross profit was Rs 257.3 crore, up by 17.5% YoY with a Gross margin of 51.5%.
• EBITDA was Rs 102.0 crore, grew by 39.9% with an EBITDA margin of 20.4%
• EPS grew by 3.8% YoY to Rs 1.52
• RoW business reported Rs 22.2 crore in Q1FY24
• In Q1FY24, the capex incurred was Rs 81.5 crore Capex investment is in-line with our plan for scaling the acquired manufacturing unit from Teva Pharma in Goa
• Cash Balance at the end of June 30, 2023 is at Rs 636 crore in Q1FY24
• In Q1FY24, Cash from Operations is at Rs 49.8 crore

Result PDF

Pharmaceuticals company Marksans Pharma announced Q4FY23 & FY23 results:

• Q4FY23:
  • Operating revenue was Rs 486.0 crore, up by 16.3% YoY driven by market share gains in the existing products and markets
    • US business grew by 12.8% YoY
    • UK and Europe grew by 33.1% YoY
  • Gross profit was Rs 242.1 crore, up by 17.3% YoY with a Gross margin of 49.8%
  • EBITDA was Rs 109.5 crore, grew by 72.1% with an EBITDA margin of 22.5%
  • EPS grew by 185.5% YoY to Rs 2.0
• FY23:
  • Operating revenue at Rs 1,852.1 crore, increased by 24.2% YoY
  • Gross profit at Rs 930.8 crore, grew by 20.3% YoY with a Gross margin at 50.3%
  • EBITDA at Rs 339.3 crore, increased 31.1% YoY with EBITDA margin at 18.3%
  • Cash balance stood at a healthy Rs 715.0 crore as of 31st March 2023
  • Free Cash Flow was Rs 183.8 crore

Mark Saldanha, Managing Director of the company said, "Our consistent growth trend continues in the quarter, driven by gains in existing store brands, products, and markets, as well as normalization of freight expenses. We have completed the acquisition of Teva Pharma manufacturing unit in Goa which will enable us to accelerate the growth of our business and strengthen our position as a leading low-cost manufacturer.

We have exceeded our FY23 guidance of Rs 1,800 crore. This milestone is our testament to our commitment to delivering value creation for our stakeholders. We aim to continue our success in the coming year, with a focus on extending our footprint in the multi-billion-dollar OTC opportunities, focusing on margin improvement, and strengthening our balance sheet”.

Result PDF

Marksans Pharma announced Q3FY23 results:

Q3FY23:

• Operating revenue was Rs 479.8 crore, up by 32.3% YoY driven by strong volume growth and market share gains in the existing products and markets
  • US business grew by 37.8%.
  • UK and Europe grew by 25.4%
• Gross profit was Rs 240.3 crore, up by 23.2% YoY with gross margin at 50.1%.
• EBITDA was Rs 76.6 crore, grew by 32.6% with EBITDA margin at 16.0%
• EPS grew by 30% YoY to Rs 1.56

9MFY23:

• Operating revenue at Rs 1,366.2 crore, increased by 27.3% YoY
• Gross profit at Rs 688.6 crore, grew by 21.3% YoY with gross margin at 50.4%
• EBITDA at Rs 229.8 crore, increased 17.7% YoY with EBITDA margin at 16.8%
• Cash balance stood at healthy Rs 417 crore as on 31st December 2022, excluding 75% warrant subscription amount of Rs 279 crore received in January 2023
• Free Cash Flow was Rs 145 crore

Mark Saldanha, Managing Director of the Company said "We sustained our growth momentum and had another quarter of robust performance across all key geographies. We are confident to continue our trajectory through investment in capabilities. Following OrbiMed’s warrant conversion, Marksans will benefit from their deep global healthcare experience. We remain committed to shareholder value creation and have recently completed the planned buyback.

The outlook for the coming years is promising with a strong cash position, increasing the capacities, and wide opportunities in our OTC segment."

Result PDF

Marksans Pharma announced Q2FY23 results :

• Q2FY23:
  • Operating revenue at Rs 452.6 crore, increased 25.5% YoY driven by strong underlying volume growth in existing products as well as market share gains
    • US growth was 13.7% YoY, despite the price erosion of high single digits in the Generic Rx business
    • UK and Europe growth was 32.6% YoY led by volume growth and market share gains in the existing portfolio
    • Australia and NZ grew by 39% YoY while the rest of the world was up by 56.4% YoY
  • Gross profit at Rs 229.4 crore, increased 23.4% YoY with gross margins at 50.7%
  • EBITDA at Rs 80.3 crore, increased 33.6% YoY, with EBITDA margins at 17.7%
  • R&D spend at Rs 9.8 crore. was 2.2% of sales
• H1FY23:
  • Operating revenue at Rs 886.3 crore, increased by 24.8% YoY
  • Gross profit at Rs 448.3 crore, grew by 20.4% YoY with gross margins at 50.6%
  • EBITDA at Rs 153.1 crore, increased 11.4% YoY with EBITDA margins at 17.3%
  • Cash balance stood at a healthy Rs 335 crore as on September 30, 2022

Mark Saldanha, Managing Director of the company, said, "We saw high double-digit growth with robust performance across all our regions, despite a tough operating environment, as we continued investing in our capabilities. Manufacturing and Innovation are our strategic pillars, and we believe the acquisition of capacity from Tevapharm India will provide further fillip to growth. We continue to navigate the challenging environment through our strong execution. Looking ahead, we continue to see growing demand in our OTC segment across the regions, and we are well-positioned to take advantage of these opportunities."

Result PDF

Marksans Pharma announced Q1FY23 Result :

• Operating revenue was Rs. 433.8 cr., growing by 24.3% driven by a strong volume growth in existing products and new launches in the US & UK.
  • US business grew by 25.7%. Pricing erosion in the US continued in the high single digit during the quarter impacting Generic Rx business.
  • UK and Europe grew by 13.7%
• Gross profit was Rs 218.9 cr, growing by 17.3% YoY with Gross margin at 50.5%.
• EBITDA was Rs 72.9 cr., declining by 5.8% with EBITDA margin at 16.8%, on account of increase in costs of material, freight costs, and pricing pressure in the US.
• R&D spend was at 2% of sales
• Healthy cash balance of Rs. 339 cr

Mark Saldanha, Managing Director of the Company said "We had a strong start to the year, achieving good growth across all our regions. Our existing business, new product approvals, and launches continue to drive the momentum. We have emerged as a prime manufacturer and marketer of private-label store brands of consumer healthcare products in the USA, UK and Australia. This is driven by our commitment to invest in product innovation, newer capacities, and increasing penetration. Looking ahead, we see growing demand in our OTC segment across the regions, and we are well-positioned to take advantage of these opportunities."

Result PDF

Marksans Pharma declares Q4FY22 result:

• Q4FY22
  • Operating revenue was Rs 418.0 cr. compared to Rs 330.2 cr. in Q4FY21, an increase of 26.6% YoY
  • Gross profit was Rs 206.4 cr., with gross margin at 49.4%
  • EBITDA was Rs 63.6 cr., with EBITDA margin at 15.2%
  • PBT was Rs 52.6 cr., while PAT stood at Rs 29.7 cr.
• FY22
  • Operating revenue increased by 8.3% YoY to Rs 1,490.8 cr.
  • Gross profit was Rs 774.0 cr., with gross margin at 51.9%
  • EBITDA was Rs 258.9 cr. with EBITDA Margin at 17.4%. EBITDA was impacted by:
    • Higher base effect of FY21 due to Covid19 driven panic buying and uncertainty
    • input cost pressures seen during the year on account of increased freight costs and geopolitical tensions
    • Persistent pricing pressure of high single digit in US seen during the year impacting generic Rx business
  • PBT was Rs 247.5 cr., while PAT stood at Rs 186.8 cr.
  • Generated Cash from Operations and Free Cash Flow of Rs 99.3 cr. and Rs 52.3 cr. respectively
• Total R&D Expenditure was Rs 30.2 cr., constituting ~2% of revenue and expected to increase to ~4-5% over the next few years
• Capex incurred was Rs 46.3cr. Plan to incur capex of Rs 200.0 cr. over two years for increasing manufacturing capacities
• Working capital cycle was ~108 days
• Expanded in existing markets with the launch of 12 new products in UK/ Europe markets and 3 new products in USA

Result PDF