Ranbaxy surpass 2012 guidance; Crosses Rs.120 Bn in Global sales
Q4 CY 2012 Sales Rs.26,708 Mn
CY 2012 Sales Rs.123 Bn, EBITDA Rs.18,227 Mn
EBITDA margin 15%. Sales growth of 23% in Rupee terms
Ranbaxy Laboratories released their audited results for the Quarter and Year ended Dec 31, 2012.
The key financial highlights include for Q4'12 include consolidated sales at Rs.26,708 Mn while the Q4'11 sales were at Rs.37,520. EBITDA stood at Rs.528 million while net profit was a loss of Rs.4,924 Mn.
The profitability for Q4'12 was primarily impacted by the voluntary recall of Atorvastatin, which impacted the quarter by Rs.1,860 Mn and mark to market (MTM) loss of Rs.2,619 Mn on long term derivative contracts and foreign currency loans owing to a weaker rupee.
The Consolidated sales for the year ended Dec 31, 2012 (CY'12)were Rs.122,529 million [CY 11: Sales Rs.99,700 million] Sales growth of 23% in rupee terms over the corresponding year.The EBITDA without considering exceptional items was 15% of Sales at Rs.18,227 million. Profit After Tax was Rs.9,228 Mn. PAT for CY'12 was 8% of sales after incorporating one time charges of Rs.1,860 Mn and Rs.1,652 Mn on account of recall and forex MTM mentioned earlier.
Commenting on the business results for the quarter, Mr. Arun Sawhney, CEO & Managing Director, Ranbaxy, said,
"2012 was a mixed year for us. While we delivered our strongest ever sales performance monetizing our major key product opportunities, we also faced challenges, primarily the recall of atorvastatin in the US market at the end of the year. We took a proactive action to voluntarily recall atorvastatin from the US market in the best interest of patients. We have since taken several Corrective and Preventive Actions (CAPA) and commenced shipment of the API to our formulation facility in the US."
Adding further, Mr. Arun Sawhney said, "We have made good progress on the Consent Decree honouring all our commitments till date. We continue to remain confident of monetizing our large ANDAs. In line with our focus on differentiated products and branded strategy for the developed markets, the company launched Absorica, as an NDA in the dermatological segment in USA. We have taken significant steps which will position Ranbaxy to emerge stronger with a competitive edge, in the rapidly changing business climate."
Key Highlights/Developments
Base business sales in Q4'12 and CY'12 improved by double digits over the corresponding period.Sales grew in major emerging markets of India, Africa and East Europe & CIS over Q4'11. For CY'12, sales improved in all major emerging and developed markets.
Also significant was the launch of India's first new drug, Synriam, for the treatment of Plasmodium falciparum malaria, in adults. Synriam featured amongst the top new product launches in the Indian Pharmaceuticals Market (IPM).
With the launch of pioglitazone hydrochloride in the US as an authorised generic (AG), Ranbaxy gained over 30% market share.The leadership in Atorvastatin + Amlodipine (Caduet AG) post exclusivity was also maintained.
India sales growth at 12% was faster than IPM sales growth. bUnder the Hybrid Business Model, Ranbaxy and Daiichi Sankyo Co. Limited (DS) further strengthened collaboration with the integration of their businesses in Thailand.
During Q4'12, 15 regulatory agency inspections from the US FDA, EU Countries/ EMEA, Germany, South Africa and India were conducted at Ranbaxy's global manufacturing sites.In January 2012, Ranbaxy announced court approval of the Consent Decree (CD) filed with the US Food and Drug Administration (FDA); progress on the implementation of the Consent Decree has been per plan.
Ranbaxy received approval to set up a Greenfield manufacturing facility by the Government of Malaysia which will significantly enhance the existing manufacturing capacity and help catering the ASEAN region. Earlier during the year, the Company established a new manufacturing base in Morocco, paving the way for a direct business presence in North Africa.
Emerging markets contributed Rs.13,628 Mn accounting for ~51% of total sales during the quarter and 41% during the year. Developed markets recorded Rs.10,938 Mn of sales and contributed 41% to total sales for the Company during the quarter and 53% during the year. API and others accounted for the rest of the revenue.
In North America sales for the quarter were Rs.8,510 Mn. The region recorded sales of Rs.53,336 Mn for the year, a growth of 28% aided by strong exclusivity sales of Atorvastatin and Amlodipine + Atorvastatin, and post exclusivity sales of these molecules.
In India (including Sri Lanka and CHC)sales for the Quarter were Rs.5,418 Mn, up 12% from the corresponding quarter. The IPM slowed down to ~9% growth levels during the Quarter and 11% for the year.
The Company expects to achieve sales of over Rs. 120 Bn in 2013, while also growing its base business by over 10%.
