- 22 May 2023
- ICICIdirect Research
ABBOTT REPORTS MISS ON ALL FRONTS, BUT POWER BRANDS CONTINUE TO DELIVER
ABBOTINDIA - 30955 Change: -190.00 (-0.61 %)News: Revenues increased 7% YoY to Rs 1343.1 crore. EBITDA was impacted by 4.7% YoY to Rs 280.1 crore whereas EBITDA margins declined 256 bps to 20.9%. While the GPM was in line, higher than anticipated other expenses during the quarter largely led to such decline. PAT increased 9.5% YoY to ~Rs 231 crore
View: Abbott’s number deviated slightly from our estimates. As per IQVIA March 2023 data power brands like Thyronorm (Hormones), Duphalac (GI), Udiliv (GI) and Duphaston (Gynaecology) grew 29%, 19%, 28% and 16% in Q4FY23. On the other hand legacy brands Vertin (CNS) and Cremaffin Plus (GI) delivered low single digit growth YoY during the quarter. Notwithstanding quarterly gyrations, the company remains in good stead driven by strong and sustainable business model backed by stable growth, debt-free b/s, favourable market dynamics with doctor prescription stickiness and lower perceived risk factors. We continue to believe in Abbott’s strong growth track in power brands and capability of new launches on a fairly consistent basis.
Impact: Neutral