Pfizers reports muted Q1, strategic shift to VRS and digital drivesPFIZER - 4406 Change: 110.85 (2.58 %)
News: Pfizer posted de-growth of 21% YoY (up 8% QoQ) in top-line to Rs 593 crore. EBITDA margins contracted 578 bps YoY (up 226 bps QoQ) to 32.4% while EBITDA de-grew 33%YoY (up 16% QoQ) to Rs 192 crore. Net profit declined 15% YoY (up 34% QoQ) to Rs 169 crore.
View: Revenues were below our expectations. However, growth was also impacted by high base of Q1FY22. Pfizer reported one-off of Rs 129.8 crore on account of voluntary retirement scheme (VRS) and Rs 6.5 crore on account of restructuring to drive business transformation in Q1FY23. Company is focussed on direct-to market initiative and implementation of VRS currently, in a strategic shift to post better margins. We continue to believe in Pfizer’s strong growth track record in power brands but despite capability in new launches on a fairly consistent basis, we remain sceptical of Pfizer’s ability to garner volume led growth for new launches in market.