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Record Sales & Profits - Quarter I FY2017

Net Sales up 40.0%, EBITDA up 54.4% and Net profits up 55.1%

Mumbai, August 09, 2016: Pharma Major Lupin Limited reported its performance for the first quarter ending June 30th, 2016. These results were taken on record by the Board of Directors at a meeting in Mumbai today.

Key Financial & Performance Highlights

 

  • Net Sales for the quarter grew by 40.0% to Rs. 43,136 m., as compared to Rs. 30,809 m. in Q1 FY2016
    • Net Sales in Q1 FY2017 grew by 5.7% sequentially as compared to Rs. 40,823 m. in Q4 FY2016
  • Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) for the quarter was 32.2% of net sales and grew by 54.4% to Rs. 13,907 m. as compared to Rs. 9,005 m. in Q1 FY2016
    • EBITDA in Q1 FY2017 grew by 3.8% sequentially as compared to Rs. 13,399 m. in Q4 FY2016
  • Net profits for the quarter grew by 55.1% to Rs. 8,820 m. as compared to Rs. 5,686 m. in Q1 FY2016
    • Net profits in Q1 FY2017 grew by 17.9% sequentially as compared to Rs. 7,479 m. in Q4 FY2016
  • Investment in Research for the quarter was Rs. 4,994 m., 11.6% of net sales

Business Performance (Refer to the Key Markets – Business Mix Section, Page 4)

  • US formulation sales increased by 78.9% to USD 322 m. in Q1 FY2017, as compared to Q1 FY2016
  • Japan sales increased by 30.9% to Rs. 4,232 m. in Q1 FY2017, as compared to Q1 FY2016

Commenting on the results, Mr. Nilesh Gupta, Managing Director, Lupin Limited, said “In keeping with the growth momentum, we continue to execute flawlessly and have delivered our best results to date. This was a record quarter, driven by robust growth across all our key markets – the United States, India and Japan. We remain committed to maintaining our growth trajectory given new product launches and approvals driven by strategic investments in technology and research.”

Consolidated financial Results – Quarter I, FY2017

Figures in Rs. M

Particulars Q1 FY2017 % of net sales Q1 FY2016 % of net sales YoY growth % Q4 FY2016 % of net sales QoQ growth %
Net sales 43,136 100.0% 30,809 100.0% 40.0% 40,823 100.0% 5.7%
Other operating income 1,259 2.9% 752 2.4% 67.4% 884 2.2% 42.4%
Total revenue 44,394 102.9% 31,561 102.4% 40.7% 41,707 102.2% 6.4%
                 
Raw material consumed 12,719 29.5% 9,835 31.9% 29.3% 11,010 27.0% 15.5%
Gross margin (excl. other operating income) 30,416 70.5% 20,974 68.1% 45.0% 29,813 73.0% 2.0%
                 
Employees cost 7,059 16.4% 4,973 16.1% 42.0% 5,779 14.2% 22.1%
Manufacturing & other expenses 11,535 26.7% 8,505 27.6% 35.6% 11,868 29.1% -2.8%
Operating margin 13,081 30.3% 8,248 26.8% 58.6% 13,050 32.0% 0.2%
                 
Other income 826 1.9% 757 2.5% 9.2% 349 0.9% 136.8%
EBITDA 13,907 32.2% 9,005 29.2% 54.4% 13,399 32.8% 3.8%
                 
Depreciation & Amortization 2,027 4.7% 1,014 3.3% 100.0% 1,487 3.6% 36.3%
EBIT 11,880 27.5% 7,991 25.9% 48.6% 11,912 29.2% -0.3%
                 
Finance cost 320 0.7% 70 0.2%   213 0.5% 50.3%
PBT 11,560 26.8% 7,921 25.7% 45.9% 11,699 28.7% -1.2%
                 
Tax 2,734 6.3% 2,258 7.3% 21.1% 4,188 10.3% -34.7%
PAT 8,826 20.5% 5,663 18.4% 55.8% 7,511 18.4% 17.5%
                 
Share of profit from Joint Venture  0 0.0% 20 0.1%    19 0.0%  
Minority Interest  6 0.0% (3) 0.0%    51 0.1%  
Net profit  8,820 20.4% 5,686 18.5% 55.1%  7,479 18.3% 17.9%


 

Profit & loss highlights

  • Material cost decreased by 2.4% to 29.5% of net sales, at Rs. 12,719 m., as compared to Rs. 9,835 m. in Q1 FY2016
  • Personnel cost increased by 0.3% to 16.4% of net sales, at Rs. 7,059 m., as compared to Rs. 4,973 m. in Q1 FY2016
  • Manufacturing and other expenses decreased by 0.9% to 26.7% of net sales at Rs. 11,535 m., as compared to Rs. 8,505 m. in Q1 FY2016
  • Investment in Research for the quarter was Rs. 4,994 m., 11.6% of net sales

Balance sheet highlights

  • Operating working capital decreased to Rs. 48,857 m. as on June 30th, 2016 as against Rs. 54,886 m. as on March 31st, 2016. The working capital number of days stands at 102 days as on June 30th, 2016 as against 146 days on March 31st, 2016
  • Capital Expenditure for the quarter was Rs. 5,633 m.
  • Net Debt-Equity ratio for the company stands at 0.43:1

Business Segments – Sales Mix

 

Particulars Q1 FY2017 Q1 FY2016 YoY growth % Q4 FY2016 QoQ growth %
Formulations 40,267  27,534 46.2% 37,979 6.0%
North America 21,886  12,004 82.3% 21,905 -0.1%
India  9,313  8,849 5.2%  7,561 23.2%
APAC  5,416  4,076 32.9%  4,532 19.5%
EMEA  2,194  1,819 20.6%  2,452 -10.5%
LATAM  1,089  616 76.8%  924 17.9%
ROW  369  170 117.1%  605 -39.0%
           
API  2,869  3,275 -12.4%  2,844 0.9%
Total 43,136  30,809 40.0% 40,823 5.7%

 

lupin Q1 sales mix

Operational Highlights

 

North America

Lupin’ sales in North America grew by 82.3% to Rs. 21,886 m. during Q1 FY2017 as compared to Rs. 12,004 m. during Q1 FY2016; contributing 51% of Lupin’s global sales.

  • US sales grew by 78.9% to USD 322 m. during Q1 FY2017 as compared to USD 180 m. during Q1 FY2016. US sales declined by 1% during Q1 FY2017 as compared to USD 325 m. during Q4 FY2016
  • The Company launched 3 products in the US market during the quarter. The Company now has 123 products in the US generics market
  • Lupin is now the market leader in 46 products marketed in the US generics market and amongst the Top 3 in 80 of its marketed products (market share by prescriptions, IMS Health, June 2016)

India

Lupin’s India formulation sales grew by 5.2% to Rs. 9,313 m. during Q1 FY2017 as compared to Rs. 8,849 m. during Q1 FY2016; contributing 22% of Lupin’s global sales. The India Formulation business grew by 23.2% sequentially as compared to Rs. 7,561 m. during Q4 FY2016.

Asia-Pacific (APAC)

Lupin’s APAC sales grew by 32.9% to Rs. 5,416 m. during Q1 FY2017 as compared to Rs. 4,076 m. during Q1 FY2016; contributing 12% of Lupin’s global sales.  APAC sales grew by 19.5% sequentially as compared to Rs. 4,532 m. during Q4 FY2016.

Lupin’s Japan sales grew by 11.1% to JPY 6,868 m. during Q1 FY2017 as compared to JPY 6,183 m. during Q1 FY2016 and grew by 15.8% sequentially as compared to JPY 5,930 m. during Q4 FY2016.

Lupin’s Philippines sales grew by 65.5% to PHP 487 m. during Q1 FY2017 as compared to PHP 295 m. during Q1 FY2016 and grew by 10.6% sequentially as compared to PHP 441 m. during Q4 FY2016.

Europe, Middle-East and Africa (EMEA)

Lupin’s EMEA sales grew by 20.6% to Rs. 2,194 m. during Q1 FY2017 as compared to Rs. 1,819 m. during Q1 FY2016; contributing 5% of Lupin’s global sales. EMEA sales declined by 10.5% sequentially as compared to Rs. 2,452 m. during Q4 FY2016.

Lupin’s South Africa sales grew by 31.9% to ZAR 205 m. during Q1 FY2017 as compared to ZAR 155 m. during Q1 FY2016 and declined by 20.4% sequentially as compared to ZAR 258 m. during Q4 FY2016. Lupin remains the 4th largest generic player in the South African market.

Lupin’s Germany sales grew by 88.2% to Euro 6.4 m. during Q1 FY2017 as compared to Euro 3.4 m. during Q1 FY2016 and declined by 12.3% sequentially as compared to Euro 7.3 m. during Q4 FY2016.

Latin America (LATAM)

Lupin’s LATAM sales grew by 76.8% to Rs. 1,089 m. during Q1 FY2017 as compared to Rs. 616 m. during Q1 FY2016; contributing 2% of Lupin’s global sales.  LATAM sales grew by 17.9% sequentially as compared to Rs. 924 m. during Q4 FY2016.

Lupin’s Brazil sales grew sequentially by 12.9% to BRL 31 m. during Q1 FY2017 as compared to BRL 27 m. during Q4 FY2016.

Lupin’s Mexico sales grew by 0.8% to MXN 132 m. during Q1 FY2017 as compared to MXN 131 m. during Q1 FY2016 and grew by 13.5% sequentially as compared to MXN 116 m. during Q4 FY2016.

API

Global API sales declined by 12.4% to Rs. 2,869 m. during Q1 FY2017 as compared to Rs. 3,275 m. during Q1 FY2016; contributing 7% of Lupin’s global sales.  API sales grew by 0.9% sequentially as compared to Rs. 2,844 m. during Q4 FY2016.

R&D

Revenue expenditure on R&D for Q1 FY2017 amounted to Rs. 4,994 m., 11.6% of net sales.

Lupin filed 2 ANDAs and received 7 approvals from the US FDA during the quarter. Cumulative ANDA filings with the US FDA stood at 336 as of June 30th, 2016, with the company having received 187 approvals to date. The Company now has 45 First-to-Files (FTF) filings including 25 exclusive FTF opportunities. Cumulative DMF filings stands at 172 as of June 30th, 2016.

The Company received 4 MAAs approval from the European authority during the quarter. Cumulative filings with European authorities now stands at 67 with the company having received 54 approvals to date.

About Lupin Limited

Lupin is an innovation led transnational pharmaceutical company producing and developing a wide range of branded & generic formulations, biotechnology products and APIs globally. The Company is a significant player in the Cardiovascular, Diabetology, Asthma, Pediatric, CNS, GI, Anti-Infective and NSAID space and holds global leadership position in the Anti-TB segment.

Lupin is the 5th largest generics player in the US (5.51% generic market share by prescriptions – IMS Health, National Prescription Audit, MAT March 2016) and the 2nd largest Indian pharmaceutical company by market capitalization. The Company is also the 9th largest generic pharmaceutical player in Japan and the 4th largest generic pharmaceutical company in South Africa (IMS Health, March 2016).

For the financial year ended 31st March, 2016, Lupin’s Consolidated sales and Net profit stood at Rs. 136,539 million (USD 2.09 billion) and Rs. 22,607 million (USD 345 million) respectively. Please visit http://www.lupin.com for more information.

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CIN: L24100MH1983PLC029442 Registered Office: Lupin Ltd, 3rd Floor, Kalpataru Inspire, Off Western Express Highway, Santacruz (East), Mumbai 400 055.

For further information or queries please contact –

Shamsher Gorawara

Head – Corporate Communications

Lupin Limited:

Ph: +91 98 20 338 555

Email: shamshergorawara@lupin.com

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