Lupin Quarter II, FY2019 – Results

Pharma major Lupin Limited reported its financial performance for the second quarter and six months ended September 30th, 2018. These results were taken on record by the board of directors at a meeting held in Mumbai.

Key financial and performance highlights

Sales for the quarter grew by 3.1 percent to ₹38,909 million compared to ₹37,746 million in Q1 FY2019.

• Sales for quarter increased by 0.4 percent compared to ₹38,742 million in Q2 FY2018.
• H1 FY2019: Sales were ₹76,655 million compared to ₹76,810 million in H1 FY2018.

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) for the quarter grew by 9.7 percent to ₹7803 million (20.1 percent of sales) compared to ₹7112 million (18.8 percent of sales) in Q1 FY2019.

• EBITDA for the quarter decreased by 15.8 percent compared to 9271 million in Q2 FY2018.
• H1 FY2019:EBITDA was 14,915 m. compared to ₹17,274 million in H1 FY2018.

Net profits for the quarter grew by 31.2  percent to ₹2660 million compared to ₹2028 million in Q1 FY2019.

• Net profits for the quarter decreased by 41.5 percent compared to ₹4550 million in Q2 FY2018.
• H1 FY2019:Net profits were ₹4687 million compared to ₹8131 million in H1 FY2018.

Investment in Research for the quarter was ₹3758 million, 9.7 percent of sales.

Commenting on the results, Nilesh Gupta, Managing Director, Lupin Limited said, “This quarter we saw promising developments on the specialty front with the Solosec launch in full swing and a positive CHMP opinion for NaMuscla. Aided by forex and markets like the US starting to stabilize, we are now getting back on growth mode. We have made meaningful progress on our cost optimization efforts and these should start playing out from the next fiscal. Our growth will be fuelled by new product launches in the near term and meaningful evolution of products in the complex generic, biosimilar and specialty space in the mid to long-term.”

Income statement highlights – Q2 FY2019

• Material cost decreased by 246 bp to 35.8 percent of sales, at ₹13,928 million compared to ₹14,442 million in Q1 FY2019.
• Personnel cost increased by 55 bp to 20.4 percent of sales, at ₹7938 million compared to ₹7494 million in Q1 FY2019.
• Manufacturing and other expenses increased by 114 bp to 31.2 percent of sales at ₹12,148 million compared to ₹11,354 million in Q1 FY2019.
• Investment in Research for the quarter was ₹3,758 million representing 9.7 percent of sales.

Balance sheet highlights

• Operating working capital increased to ₹59,853 million as on September 30th, 2018 compared to ₹56,395 million as on June 30th, 2018. The working capital number of days stands at 141 days as on September 30th, 2018 compared to 133 days as on June 30th, 2018.
• Capital Expenditure for the quarter was ₹1,767 million.
• Net Debt-Equity ratio for the company stands at 0.45:1.

Operational highlights  

North America

• Lupin’s North America sales for Q2 FY2019 were ₹12,487 million compared sales of ₹11,858 million during Q1 FY2019 and ₹13,611 million during Q2 FY2018; accounting for 32 percent of Lupin’s global sales.
• Q2 FY2019 sales were USD 171 million compared to USD 168 million during Q1 FY2019 and USD 204 million during Q2 FY2018.
• The Company launched 5 products in the US market during the quarter. The Company now has 162 products in the US generics market.
• Lupin is the 3rd largest pharmaceutical player in the US by prescriptions for the Total Market (IQVIA MAT September 2018).
• Lupin is now the market leader in 64 products in the US generics market and amongst the Top 3 in 111 of its products (market share by prescriptions, IQVIA September 2018).

India

• Lupin’s India formulation sales for Q2 FY2019 grew by 0.9 percent to ₹12,032 million as compared to ₹11,924 million in Q1 FY2019 and by 3.8 percent as compared to ₹11,593 million in Q2 FY2018.
• India formulation sales for H1 FY2019 grew by 14.5 percent to ₹23,956 million as compared to ₹20,918 million during H1 FY2018.
• Lupin is the 5th largest company in the Indian Pharmaceutical Market (IQVIA MAT September 2018).

Asia-Pacific (APAC)

• Lupin’s APAC sales were at ₹6199 million during Q2 FY2019 compared to sales of ₹6077 million in Q1 FY2019 and ₹6357 million in Q2 FY2018.
• Lupin’s Japan sales were JPY 8151 million during Q2 FY2019 compared to JPY 8129 million in Q1 FY2019 and JPY 8685 million in Q2 FY2018.
• Lupin remains the 6th largest generic player in Japan (IQVIA MAT September 2018).
• Lupin’s Philippines sales were PHP 383 million during Q2 FY2019 compared to PHP 352 million in Q1 FY2019 and PHP 504 million in Q2 FY2018.

Europe, Middle-East and Africa (EMEA)

• Lupin’s EMEA sales were ₹2949 million for Q2 FY2019 compared to sales of ₹2760 million in Q1 FY2019 and ₹2758 million in Q2 FY2018.
• Lupin’s South Africa sales were ZAR 283 million during Q2 FY2019 compared to ZAR 261 million in Q1 FY2019 an ZAR 270 million in Q2 FY2018.
• Lupin remains the 4thlargest generic player in the South African market (IQVIA MAT September 2018).
• Lupin’s Germany sales were Euro 7.3 million during Q2 FY2019 compared to Euro 7.5 million in Q1 FY2019 and Euro 7.6 million in Q2 FY2018.

Latin America (LATAM)

• Lupin’s LATAM sales were ₹1459 million during Q2 FY2019 compared to ₹1256 million in Q1 FY2019 and ₹1395 million in Q2 FY2018.
• Lupin’s Brazil sales were BRL 42 million during Q2 FY2019 compared to BRL 25 million in Q1 FY2019 and BRL 40 million in Q2 FY2018.
• Lupin’s Mexico sales were MXN 164 million during Q2 FY2019 compared to MXN 159 million in Q1 FY2019 and MXN 154 million in Q2 FY2018.

Global API

• Global API sales were ₹3347 million during Q2 FY2019 as compared to ₹3581 million during Q1 FY2019 and ₹2650 million during Q2 FY2018; accounting for 9 percent of Lupin’s global sales.
• Global API sales for H1 FY2019 grew by 27.3 percent to ₹6928 million as compared to ₹5442 million during H1 FY2018.

Research and development

• Revenue Expenditure on R&D during Q2 FY2019 amounted to ₹3758 million, 9.7 percent of sales as against ₹3753 million, 9.9 percent of sales during Q1 FY2019 and ₹4739 million, 12.2 percent of sales during Q2 FY2018.
• Lupin filed 4 ANDA and received 7 approvals from the US FDA during the quarter. Cumulative ANDA filings with the US FDA stood at 405 as of September 30th, 2018, with the company having received 247 approvals to date.
• The Company now has 39 First-to-Files (FTF) filings including 14 exclusive FTF opportunities. Cumulative DMF filings stands at 192 as of September 30th, 2018.
• Cumulative filings with European authorities now stand at 59 with the company having received 57 approvals to date. – Medical Buyer Bureau