In This Article:
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Total Revenue Growth (H1 FY25): 0.6% growth.
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EBITDA (H1 FY25): 13,615 million with a margin of 21.1% (up from 17.7% in H1 FY24).
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EBITDA Growth (H1 FY25): 19.9% year-over-year.
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Net Profit (H1 FY25): 12,338 million with a 36% year-over-year growth.
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Net Profit (Q2 FY25): 6,886 million with an 11% year-over-year growth.
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Volume Growth (Q2 FY25): 1.1% in a market with 0% volume growth.
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Fan Growth: 12.8% compared to market growth of 7.3%.
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Therapy Area Outperformance (H1 FY25): Outperformed in six therapy areas: GIVMN, antiae, neuro, gynec, and derma.
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Therapy Area Outperformance (Q2 FY25): Outperformed in seven therapies.
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Industry Position: Achieved second rank in the Indian Pharmaceutical Market (IPM).
Release Date: November 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Alkem Laboratories Ltd (BOM:539523) reported a significant improvement in EBITDA margin, increasing to 21.1% in H1 FY25 from 17.7% in H1 FY24.
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The company achieved a net profit growth of 36% year-over-year, reaching 12,338 million.
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Alkem Laboratories Ltd (BOM:539523) outperformed in six therapy areas during H1, including GIVMN, antiae, neuro, gynec, and derma.
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The company reached the second rank in the Indian Pharmaceutical Market (IPM) for the first time.
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There is a positive outlook for the US business in H2, with expectations of improved performance and profitability due to better inventory management and strategic focus on high-margin products.
Negative Points
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The US business experienced a significant volume decline of 18.7% and price erosion of 6% in Q2, leading to a 15% de-growth in H1.
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Alkem Laboratories Ltd (BOM:539523) lagged behind market growth in key therapies like anti-infectives, gastro, pain, and cardiac in Q2.
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The acute market, which constitutes a significant portion of the company's business, has shown sluggish growth, impacting overall performance.
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The company faced supply chain challenges in the US, resulting in lost contracts and penalties due to inability to supply products.
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There is ongoing litigation related to the launch of certain products in the US, which could delay market entry and impact revenue.
Q & A Highlights
Q: Can you provide an update on the US business, particularly regarding product launches and overall performance expectations for FY 25? A: We launched one product in Q2, which was small and differentiated. For Q3, we expect to launch another product with CGT and 180 days exclusivity. We faced supply chain challenges in the US, leading to significant volume de-growth and price erosion in H1. We anticipate improvement in H2, expecting a flattish to mid-single-digit erosion annually. Profitability has improved due to efficiency measures and a focus on profitable sales.