- 24 Feb 2022
- ICICIdirect Research
Sanofi India revenues, margins decline amid restructuringSANOFI - 6804 Change: -10.45 (-0.15 %)
News: Sanofi’s Q4CY21 revenues declined 4.5% YoY whereas EBITDA margins declined 469 bps YoY to 18.5% due to higher other expenditure. Subsequently, EBITDA de-grew 23.8% YoY to Rs.127.2 crore. Adjusted PAT declined 21.5% YoY to Rs.90.4 crore. In addition, the board has recommended a total dividend of Rs.490 per equity share
Views: Sanofi India has restructured its business in recent times through, 1) transfer of Soframycin and Sofradex brands, 2) divestment of nutraceuticals business and 3) sale of its Ankleshwar site. Domestic business has posted 13% growth in CY21 (ex-divestment business) and according to IQVIA MAT December,2021, Sanofi’s top five brands (Lantus, Allegra, Combiflam, Amaryl M and Clexane) has posted YoY growth of 11.6%. Sanofi remains a compelling MNC play on back of its strong anti-diabetic franchise among peers, which constitutes ~35% of the turnover, strong growth track in top brands, measured new launches besides a strong balance sheet position.