- 08 Aug 2024
- ICICI Securities
Abbott Q1FY25- Muted growth due to de-growth in some power brands
ABBOTINDIA - 29798 Change: -101.10 (-0.34 %)News: Revenues grew ~5% YoY to ₹ 1558 crore. As per IQVIA, some of the power brands such as Duphaston, Vertin de-grew during the quarter. So were the marketed brands of Novo Nordisk and Abbott Healthcare except for blockbuster drug of Novo, Rybelsus (Semaglutide) and Ryzodeg. On the other hand, Udiliv, Cremaffin Plus, Duphalac registered good growth during the quarter. EBITDA grew ~10% YoY to ₹ 391 crore due to better product mix (slower growth in the marketed portfolio which fetches lower margins) which led to better GPM. EBITDA margins improved ~110 bps to ~25%. PAT grew ~% to13 ₹ 328 crore.
Views: The overall growth was pulled down by some legacy power brands and persistent slowdown in the marketed portfolio (except Rybelsus), as has been the case in the last few quarters. However, given the new products launch trajectory (+100 launches in the last 12 years and another 75 planned for the next 5 years), we believe the company is well poised to overcome the slowdown in the marketed portfolio.
Impact: Neutral