Pharma major Cipla on Tuesday announced its unaudited consolidated financial results for the quarter ended September 30th, 2024.
The company reported an 15.2 percent year-on-year rise in its consolidated net profit for the fiscal’s second quarter ended September (Q2FY25) to Rs. 1,303.53 crore.
The company had reported a profit of Rs. 1,177.64 crore in the year-ago period. Moreover, the consolidated net profit was up 10.6 percent.
According to the company’s statement, the Cipla’s consolidated revenue from operations stood at Rs. 7,051.02 crores during the quarter ended September from Rs.6,678.15 crore in Q2FY24, a year-on-year jump of nearly 10.5 percent.
One India Business grew at 5 percent YoY. Branded Prescription business continued to outpace the market in key Chronic therapies. CHL delivered strong growth at 21% YoY. The business however, witnessed a historically slow seasonal growth in Acute category impacting both Branded Prescription and Trade Generics business, the company stated.
Meanwhile, the North America business delivered quarterly revenue of $ 237 Mn up by 4% YoY supported by traction in differentiated portfolio.
In the One Africa business, the North Africa business which was a part of Emerging markets and Europe is now merged with SAGA region which is renamed as One Africa. Momentum continues with overall revenue growth at 22 percent.
Emerging Markets and Europe posted a robust revenue growth of 18% in USD terms. Additionally, R&D investments stood at Rs. 385 Crore or 5.5 percent of sales, higher by 2 percent YoY driven by product filings and developmental efforts.
The company has Net cash position of INR 7,950 Cr and debt primarily includes lease liabilities and working capital requirements.
“I am pleased to share that we continue to make considerable progress across our focused markets. In Q2 FY25, we recorded a revenue growth of 9% over last year with a highest-ever EBITDA margin of 26.7%, driven by mix and other operational efficiencies. Our One-India business was impacted during the quarter due to changed seasonal pattern, however key chronic therapies in Branded Prescription business continued to grow faster than the market. Consumer health business grew at a strong 21% YoY. With our concentrated focus in differentiated portfolio, the US business posted a revenue of $ 237 Mn. In South Africa, we recorded a solid growth of 22% YoY in local currency terms, led by Private Market. Emerging Markets and Europe delivered a robust revenue growth of 18% YoY on the back of deep market focus strategy. Going ahead, focus will be on growing our key markets, further building our flagship brands, investing in future pipeline as well as focusing on resolutions on the regulatory front,” Umang Vohra, MD and Global CEO, Cipla Ltd said.
Here are the market updates of Cipla
One India Business
- Branded Prescription: The season has been slow during the quarter majorly accounted by a slow market growth in Anti-infectives, one of Cipla’s largest therapies, at 4.9% as against last year growth of over 12%. However Chronic therapies like Respiratory, Cardiac and Urology continued to outpace the market growth.
- Trade Generics: The business has been impacted by seasonality with a slow growth in the Acute category. The business is expected to return to its growth trajectory in the coming quarters.
- Consumer Health: The Consumer health franchise posted a robust growth of 21% YoY. Anchor brands of Nicotex, Omnigel and Cipladine maintained leadership positions in their respective segments.
North America
North America delivered quarterly revenue of $ 237 Mn up by 4% YoY supported by continued positive traction in differentiated portfolio. In Albuterol, the market share stood at ~19% in the quarter as per IQVIA week ended 20th Sep’2024. The Lanreotide franchise consisting of 505(b)(2) and ANDA assets, reached the market share of ~35% during the quarter, as per IQVIA MAT Aug’24. They have also received 4 new generic drug approvals during the quarter, including one peptide.
One Africa
One Africa recorded a strong double-digit growth of 22% YoY, led by South Africa Private Market. In Private Market, the secondary growth was at a healthy 8.6% versus the market growth of 0.5%. the South Africa overall private market now ranks No. 2 in the market with the prescription business maintaining its no.1 position. This growth was propelled by uptick in key therapies, new launches as well as significant growth in OTC portfolio.
Emerging Markets and Europe
Deep market focus strategy in Emerging Markets and Europe has started paying off, with the business delivering a growth of 18% in USD terms with uptick in both DTM and B2B categories, along with sustained overall margins.
Prathamesh Masdekar, Research Analyst, StoxBox said that Cipla continues to report healthy numbers, further establishing core business strengths in India, North America, and South Africa.
“Overall, the One-India branded prescription segment saw slower growth this quarter due to weaker market growth in anti-infectives. However, chronic therapies such as respiratory, cardiac, and urology maintained strong growth and outperformed market trends. In trade generics, seasonal factors affected the acute category’s performance, though Cipla anticipates a return to its growth path in upcoming quarters. The consumer has strong segment growth, with flagship brands Nicotex, Omnigel, and Cipladine sustaining their leadership in their respective categories. South African businesses recorded strong growth annually in local currency, led by the private market. Emerging markets and Europe have also delivered robust revenue growth on the back of a deep market focus strategy,” Masdekar said.
It achieved leadership in the pharma prescription market by consistently outpacing market growth for a few years, he said.
“We expect Cipla to work towards establishing a robust foundation for growth in upcoming quarters. The focus will be on growing key markets, further building flagship brands, investing in future pipelines, and focusing on resolutions on the regulatory front,” he added.
