- 11 May 2023
- ICICI Securities
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SANOFI INDIA REPORTS SALES MISS, MARGINS OUTPERFORM
SANOFI - 6286 Change: -28.50 (-0.45 %)News: Sanofi’s Q1CY23 revenues increased by 4.2% YoY to | 736 crore. Domestic sales growth on comparable basis stood at 3.8%, exports grew at 26%. On operational front during the quarter EBITDA de-grew 8.2% QoQ to | 167 crore while EBITDA improved 18% YoY to | 230 crore while margins stood at 31.1% up 370 bps YoY. The performance improved due to better gross margins and lower operational overheads. Adjusted Profit for the quarter increased 16.8% YoY to | 177 crore.
Sanofi to de-merge consumer health business in 1:1 ratio into its wholly owned subsidiary Sanofi Consumer Healthcare India Limited
For CY22, sales from the consumer healthcare business stood at ~Rs7.28bn (~28% of sales). The consumer healthcare business of the Company includes brands like Allegra, Combiflam, DePURA, Avil.Upon completion of the proposed demerger, Sanofi will continue to own 60.4% stake in both entities and Sanofi India Limited shareholders will receive 1:1 shares of consumer health business, for each equity share owned.
Views: While there was a substantial beat on the EBITDA front due to better control over overheads, the sales growth continues to be muted with three of the top five power brands ( Lantus, Combiflam, Amaryl ) registered either negative or flat growth. With the proposed demerger of the consumer business we expect calibrated approach towards two different segments for better focus.
Impact: Neutral