Mumbai: Pharma major Lupin Limited [BSE: 500257 | NSE: LUPIN] reported its financial performance for the quarter and nine monthsended December 31, 2019. These results were taken on record by the Board of Directors at a meeting held in Mumbai today.
The quarter was impacted by Exceptional items which included:
Financial Highlights of the Quarter (from Continuing Operations) – Consolidated IND-AS
Amt in INR mn
Particulars | Quarter | YTD | ||||||
| Q3 FY20 | Q2 FY20 | QoQ Growth % | Q3 FY19 | YoY Growth% | 9M FY20 | 9MFY19 | YoY Growth % | |
| Sales | 37,161 | 38,202 | ↓2.7% | 38,212 | ↓2.8% | 113,518 | 105,110 | ↑8.0% |
| EBITDA | 5,227 | 7,686 | ↓32.0% | 7,218 | ↓27.6% | 21,046 | 20,412 | ↑3.1% |
| EBITDA Margin (%) | 14.1% | 20.1% | – | 18.9% | – | 18.5% | 19.4% | – |
| PBT before Exceptional items | 1,809 | 4,334 | ↓58.3% | 4,243 | ↓57.4% | 10,931 | 11,960 | ↓8.6% |
Income Statement highlights – Q3 FY2020
Balance Sheet highlights
Commenting on the results, Mr. Nilesh Gupta, Managing Director, Lupin Limited said, “There are a lot of one-times in the numbers this quarter. The reported performance was significantly affected by exceptional events, including the impairment of the Gavis portfolio and our divestiture of Kyowa. Sequentially, the profitability in the quarter was impacted by lumpiness in some of the spend but we see improved margins hereon. The resilience of the India branded business, stabilization of the US generic base business and growth in new launches will drive growth for the Company. Quality remains our top-most priority and we are making steady progress on remediation measures across our manufacturing footprint”.
Consolidated Financial Results – Q3 FY2020
Amt in INR mn
| Particulars | Q3 FY20 | % of sales | Q2 FY20 | % of sales | QoQ Growth % | Q3 FY19 | % of sales | YoY Growth % |
| Sales | 37,161 | 100.0% | 38,202 | 100.0% | -2.7% | 38,212 | 100.0% | -2.8% |
| Other operating income | 532 | 1.4% | 620 | 1.6% | -13.7% | 1,262 | 3.3% | -57.6% |
| Total Revenue from operations | 37,693 | 101.4% | 38,822 | 101.6% | -2.9% | 39,474 | 103.3% | -4.5% |
| Material cost | 13,593 | 36.6% | 13,439 | 35.2% | 1.1% | 13,484 | 35.3% | 0.8% |
| Gross Profit (Excl. Other op. income) | 23,568 | 63.4% | 24,763 | 64.8% | -4.8% | 24,728 | 64.7% | -4.7% |
| Employee cost | 7,407 | 19.9% | 7,602 | 19.9% | -2.6% | 6,981 | 18.3% | 6.1% |
| Manufacturing & Other expenses | 12,402 | 33.4% | 11,375 | 29.8% | 9.0% | 12,192 | 31.9% | 1.7% |
| Other Income | 936 | 2.5% | 1,280 | 3.4% | -26.8% | 402 | 1.1% | 132.9% |
| EBITDA | 5,227 | 14.1% | 7,686 | 20.1% | -32.0% | 7,218 | 18.9% | -27.6% |
| Depreciation & Amortization | 2,532 | 6.8% | 2,526 | 6.6% | 0.2% | 2,190 | 5.7% | 15.6% |
| EBIT | 2,695 | 7.3% | 5,160 | 13.5% | -47.8% | 5,028 | 13.2% | -46.4% |
| Finance cost | 886 | 2.4% | 826 | 2.2% | 7.3% | 785 | 2.1% | 12.9% |
| PBT before Exceptional items | 1,809 | 4.9% | 4,334 | 11.3% | -58.3% | 4,243 | 11.1% | -57.4% |
| Exceptional items | 2,887 | 7.8% | 5,465 | 14.3% | NA | 3,422 | 9.0% | NA |
| PBT after Exceptional items | (1,078) | -2.9% | (1,131) | -3.0% | -4.7% | 821 | 2.1% | – |
| Tax * | 7,670 | 20.6% | 695 | 1.8% | – | 2,454 | 6.4% | – |
| Profit after Tax | (8,748) | -23.5% | (1,826) | -4.8% | – | (1,633) | -4.3% | – |
| (+) Share of Profit from JV | 10 | 0.0% | 10 | 0.0% | 12 | 0.0% | ||
| (-) Non-Controlling Interest | (53) | -0.1% | 37 | 0.1% | (6) | 0.0% | ||
| Net Profit from continuing operations | (8,685) | -23.4% | (1,853) | -4.9% | – | (1,615) | -4.2% | – |
| Profit/(Loss) from discontinued operations | 335 | 0.9% | 582 | 1.5% | – | 96 | 0.3% | – |
| Profit/(Loss) for the period | (8,350) | -22.5% | (1,271) | -3.3% | – | (1,519) | -4.0% | – |
*Tax includes the impact of Exceptional items as below:
Sales Mix
| Amt in INR mn |
| Particulars | Q3 FY20 | Q2 FY20 | Growth QoQ | Q3 FY19 | Growth YoY |
| North America | 13,766 | 13,244 | 3.9% | 14,174 | -2.9% |
| India | 12,969 | 13,419 | -3.4% | 11,902 | 9.0% |
| APAC | 1,722 | 1,585 | 8.6% | 1,369 | 25.8% |
| EMEA | 2,913 | 3,196 | -8.8% | 2,800 | 4.0% |
| LATAM | 1,796 | 1,445 | 24.3% | 1,557 | 15.4% |
| ROW | 822 | 820 | 0.2% | 683 | 20.4% |
| Total Formulations | 33,988 | 33,709 | 0.8% | 32,485 | 4.6% |
| API | 3,173 | 3,052 | 4.0% | 3,624 | -12.4% |
| Total Product sales | 37,161 | 36,761 | 1.1% | 36,109 | 2.9% |
| NCE licensing income | – | 1,441 | – | 2,103 | – |
| Sales from continuing operations | 37,161 | 38,202 | -2.7% | 38,212 | -2.8% |
| Sales from discontinuedoperations | 4,250 | 4,767 | -10.8% | 5,567 | -23.7% |
| Sales including discontinued operations | 41,411 | 42,969 | -3.6% | 43,779 | -5.4% |
Operational Highlights
North America
Lupin’s North America sales for Q3 FY2020 were INR 13,766mn, up 4% compared to sales of INR 13,244 mn during Q2FY2020 and INR 14,174 mn during Q3 FY2019; accounting for 37% of Lupin’s global sales.
India
Lupin’s India formulation sales for Q3 FY2020 were INR 12,969 mn compared to sales of INR 13,419 mn during Q2 FY2020 and up 9% compared to INR 11,902 mn during Q3 FY2019; accounting for 35% of Lupin’s global sales.
During the quarter, India branded formulation sales grew by 10.6% compared to Q3 FY2019.
Lupin is the 6th largest company in the Indian Pharmaceutical Market (IQVIA MAT December 2019).
Europe, Middle-East and Africa (EMEA)
Lupin’s EMEA sales were INR 2,913 mn for Q3 FY2020, compared to sales of INR 3,196 mn during Q2 FY2020, and up 4% as compared to sales of INR 2,800 mn during Q3 FY2019; accounting for 8% of Lupin’s global sales.
Lupin’s South Africa sales were ZAR 289 mn for Q3 FY2020, compared to ZAR 307 mn during Q2 FY2020 and ZAR 276 mn during Q3 FY2019.
Lupin is the 4thlargestgeneric player in the South African market by prescription (IQVIA November2019).
Lupin’s Germany sales were EUR9.5 mn for Q3 FY2020 compared to EUR 9.6 mn during Q2 FY2020 and EUR 6.9 mn during Q3 FY2019.
Latin America (LATAM)
Lupin’s LATAM sales were INR 1,796 mn for Q3 FY2020, up 24% compared to INR 1,445 mn during Q2 FY2020 and up 15% compared to INR 1,557 mn during Q3 FY2019; accounting for 5% of Lupin’s global sales.
Lupin’s Brazil sales were BRL 48 mn for Q3 FY2020 compared to BRL 45 mn during Q2 FY2020 and BRL 42 mn during Q3 FY2019.
Lupin’s Mexico sales were MXN 185 mn for Q3 FY2020 compared to MXN 167 mn during Q2 FY2020 and MXN 164 mn during Q3 FY2019.
Asia-Pacific (APAC)
Lupin’s APAC sales were INR 1,722 mn for Q3 FY2020, up 9% compared to sales of INR 1,585 mn during Q2 FY2020 and up 26% compared to INR 1,369 mn during Q3 FY2019; accounting for 4% of Lupin’s global sales.
Lupin’s Philippines sales were PHP 580 mn during Q3 FY2020 compared to PHP 448 mn during Q2 FY2020 and PHP 404 mn during Q3 FY2019.
Global API
Lupin’s Global API sales were INR 3,173 mn for Q3 FY2020 ascompared to INR 3,052 mn during Q2 FY2020 and INR 3,624 mn during Q3 FY2019, accounting for 8% of Lupin’s global sales.
Research and Development
Investment in R&D for continued operations during Q3 FY2020 amounted to INR 4,277 mn (11.5% of sales). This is not comparable to previous quarters as a result of divestment of Japan operations in the current quarter.
Lupin received approvals for 4 AND A from the US FDA during the quarter. Cumulative ANDA filings with the US FDA stood at 424 as of December 31, 2019, with the company having received 272 approvals to date.
The Company now has 43 First-to-Files (FTF) filings including14 exclusive FTF opportunities. Cumulative DMF filings stands at 207 as of December 31, 2019.
About Lupin Limited
Lupin is an innovation-led transnational pharmaceutical company headquartered in Mumbai, India. The Company develops and commercializes a wide range of branded and generic formulations, biotechnology products and APIs in over 100 markets in the U.S., India, South Africa and across Asia Pacific (APAC), Latin America (LATAM), Europe and Middle-East regions.
The Company enjoys leadership position in the cardiovascular, anti-diabetic, and respiratory segments and has significant presence in the anti-infective, gastro-intestinal (GI), central nervous system (CNS) and women’s health areas. Lupin is the third largest pharmaceutical company in the U.S. by prescriptions and in India by global revenues. The Company invests 9.6 % of its revenues on research and development.
Lupin has 15 manufacturing sites, seven research centers, more than 20,000 professionals working globally, and has been consistently recognized as a ‘Great Place to Work’ in the Biotechnology & Pharmaceuticals sector.
Please visit www.lupin.com for more information.
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For further information or queries please contact –
Arvind Bothra Head – Investor Relations/Corporate M&A Email: arvindbothra@lupin.com | Manjira Sharma General Manager – Corporate Communications Email: manjirasharma@lupin.com |
