Cipla Limited has announced its unaudited consolidated financial results for quarter ended December 31, 2020.
Key highlights of the quarter
▪ One India: Overall business grew by 22% YoY with strong growth across the three businesses; demand led traction in core therapies as Covid-19 portfolio normalises
▪ South Africa: Overall business in-line with last year in ZAR terms; private and OTC businesses continue to outpace the market
▪ US business: Reported USD 141Mn and 6% YoY growth led by continued expansion in market share of Albuterol and other assets; growth in the institutional channel
▪ Quality Focus: Working with USFDA to comprehensively address observations received in Goa
▪ R&D investments stand at INR 221 crore or 4.3% of revenue
▪ Continued net cash position led by strong governance and focus on cash collection
▪ In-line with our One India strategy, transfer of consumer business undertaking to Cipla Health Ltd; Simplification of group structure with subsidiarization of India based US undertaking to drive further growth
“I am pleased to see the strong execution across our markets and continued efforts on cost optimisation helping us drive revenue growth of 18% YoY and a healthy EBITDA margin of 24.8%. In India, we have maintained market beating performance across our core therapies as contribution from the Covid-19 portfolio normalises in line with the reduction in infection cases. In the US, happy to see continued expansion in market share for Albuterol.
Our businesses in South Africa and other international markets continued the momentum driven by strong demand in the base business and ramp-up in new launches. In line with our sustainability road map, we commissioned a 30 MW solar plant in Maharashtra which contribute significantly towards our objective of carbon neutral by 2025,” said Umang Vohra, MD and Global CEO, Cipla Ltd.
India Highlights
❖ The prescription business grew by 25% on a YoY basis led by covid-19 portfolio, healthy traction in respiratory and chronic therapies, recovery in hospital and acute businesses with opening-up of OPDs
❖ Trade generics business grew at an adjusted 7% on a YoY basis led by healthy seasonal demand across regions
❖ Consumer health business: strong demand for organic products and continued traction in consumer brands transferred from trade generics business
SAGA - South African, Sub-Saharan Africa and Global Access
❖ SAGA grew by 6% on a YoY basis in USD terms
❖ Overall business in South Africa in-line with last year for the quarter in ZAR terms
❖ SA private and OTC business continues to outpace the market
❖ Strategic partnership with Alvogen for 4 oncology products
North America
❖ North America grew by 6% YoY led by continued expansion in market share of Albuterol and other assets along with growth in the institutional channel
❖ Cipla ranks #1 with a TRx market share ~85% of the gProventil market as per IQVIA week ending 15 th January 2021
❖ Business continues to deliver robust profitability in 9MFY21
❖ Respiratory franchise cross USD100Mn in 9MFY21
Europe, Emerging Markets & API
❖ The emerging market business grew by 46% on a YoY basis in USD terms led by continued demand across all regions
❖ The European operations grew by 28% on a YoY basis in USD terms led by consistent in-market performance and market share gains in key DTMs
❖ The API business grew by 18% on a YoY basis in USD terms driven by seamless execution of orderbook and well-entrenched customer relationships
The company's stock was down by 0.70% at Rs819 apiece on the BSE at around 11:08 AM.