JB Pharma Investors Presentation Q2FY23

About JB Pharma

J.B. Pharma (BSE: 506943 | NSE: JBCHEPHARM | ISIN: INE572A01028), established in 1976, is one of the fastest growing pharmaceutical companies in India and a leading player in the hypertension segment. Besides its strong India presence, which accounts for majority of its revenue, its other two home markets are Russia and South Africa. In India, the company has five brands among the top 300 IPM brands in the country. The company exports its finished formulations to over 40 countries including the USA. Besides supplying branded generic formulations to several countries, it is also a leader in the manufacturing of medicated lozenges. The company ranks among the top 5 manufacturers globally in medicated and herbal lozenges. It has seven state of the art manufacturing facilities in India including a dedicated manufacturing facility for lozenges. The manufacturing facilities are certified by leading regulators across the world.

JB Pharma records revenue growth of 36% to INR 809 crores in Q2 FY23
Operating EBITDA* grew by 44% to INR 202 crores

Mumbai, India; November 11, 2022 – JB Chemicals & Pharmaceuticals Ltd (JB Pharma), one of the fastest growing pharmaceutical companies in India, announced its financial results for the second quarter ended 30th September, 2022.

Quarterly Financial Performance – Q2 FY23 vs Q2 FY22

For the second quarter ended 30th September 2022, the Company recorded revenue of INR 809 crores as compared to INR 593 crores, registering growth of 36%. Operating EBITDA* (Earnings Before Interest Depreciation and Taxes) increased by 44% to INR 202 crores as compared to INR 140 crores. Profit after Tax stood at INR 111 crores as compared to INR 98 crores registering growth of 13%.

Commenting on the financial results, Mr. Nikhil Chopra, CEO and Wholetime Director, JB Pharma said, “We continue to build further on our strong operating performance across business segments in FY 23. Our market-beating performance in domestic business was sustained through growth in our organic portfolio, with big brands getting bigger; and significant demand acceleration in acquired brands which have seamlessly transitioned in a short period. The momentum in our international business continued across markets, with all three of our verticals performing well. The CMO business has once again been the standout performer and we will continue to invest to scale this business.

Our strategic focus on key brands, segments and geographies is resulting in a consistent, sustained revenue growth. And this growth, along with productivity improvement and cost optimization initiatives, is creating strong operating leverage which is enabling us to maintain our margins in an inflationary environment with supply chain challenges“.

*Operating EBITDA is after excluding non-cash ESOP Charge

JB Pharma – Looking ahead –FY 2023

 Domestic business should consistently outperform market growth
 Acquired Brands will continue to gain traction in this financial year
 International business should continue to deliver good sales growth
 Demand from Export formulations esp. the ROW business remain good
 CMO business should continue its good run
 Operating margins excl ESOP cost should remain in the range of 24% to 26%
 Cost pressures continue to remain high in the overall business

JB Pharma – Consistent and high cash flow generation

o Free cash flow continues to be strong for the company
o Improvement seen in net working capital viz. Inventory and receivables days have improved
o Increase in borrowings on account of acquisitions

Domestic Business Q2 and H1 FY23

o Domestic business continued to register INR 400+ crores revenue for the second consecutive quarter
o Domestic business, excluding sales from acquired brands, grew at mid-teens, out-pacing industry growth
o New Product contributed 4.4% to domestic sales for Q2 FY23
o JB continues to be the fastest growing company among the top 25 as per IQVIA MAT Sept’22 data and ranked #23 in IPM
• JB grew by 19% as compared to IPM growth at 6.6% as per IQVIA MAT Sep’22
o As compared to IQVIA MAT Sep 22 vs MAT Sep 21 data
• Metrogyl gained 56 ranks to #149 ; Cilacar-T gained 76 ranks to#212 ; Nicardia gained 27 ranks to # 218 ; Cilacar gained 6 ranks to #48; and Rantac gained 4 ranks to #41
o As per IQVIA Q2 FY23 vs Q2 FY22 data, the acquired portfolio recorded growth of 25%
• Sporolac grew by 50% and remains #1 in its covered market space
• Azmarda recorded growth of 46%. The brand entered IPM’s top 300 list in Sep 22 clocking INR 10 crores revenue

Revenue Analysis: International Business Q2 and H1 FY23

o The International business continues its strong performance with revenue growing at 28% in Q2 FY23 as well as H1 FY23
• International business and CMO revenue were the highest ever recorded in a quarter
• Both Exports formulations and API registered double digit growth for Q2 FY23 as well as H1 FY23
o CMO revenue recorded 64% growth in Q2 FY23 to INR 110 crores • CMO accounts for 28% of International revenue for H1 FY23 as compared to 20% in H1 FY22
• New launches in specific markets showing good progress