Piramal Pharma Limited Announces Results for Q2 and H1 FY25

Key Highlights for Q2FY25 

Nandini Piramal, Chairperson, Piramal Pharma Limited said, "We continue our momentum of delivering healthy revenue growth accompanied by YoY EBITDA margin expansion. This has been primarily driven by consistent growth in our CDMO business which has witnessed a good pick-up in innovation related work and on-patent commercial revenues. To sustain this growth momentum and to capitalize on rising demand for sterile fill-finish capabilities, we have announced a US$80Mn expansion plan at our Lexington facility which is expected to get complete by end FY27. In our CHG business, we are witnessing steady volume growth in Inhalation Anesthesia products in the US and Emerging Markets. In our ICH business, we continue to see a robust growth in our power brands and e-commerce sales.

During the quarter, we released our Sustainability Report for FY24 under the theme, 'Building Resilience for a Sustainable Tomorrow', highlighting our progress on the sustainability initiatives.

Over the long term, we remain committed to achieving our financial goals of US$2 bn revenue with 25% EBITDA margin and 1x net debt / EBITDA by FY30."

1. Green House Gas; 2. Science Based Target initiative

-  Targeted Business Development efforts resulting in steady inflow of new orders

-  YoY improvement in demand in our generic API business

-  Operating leverage and cost optimization initiatives yielding continued YoY improvement in EBITDA margins

-  Maintained our quality track record with receipt of EIR for our PPDS facility (India) with Zero Form - 483 observations and NAI designation

-  Customer led US$80Mn expansion planed in Lexington to more than double our capacity to capture rising demand for Sterile Fill-Finish capabilities

     Complex Hospital Generics (CHG):

-  Good volume growth in inhalation anesthesia portfolio in the US and emerging markets

-  Capacity expansion at Dahej and Digwal underway to capture growth opportunity in the RoW markets

-  Investing in portfolio expansion – Building portfolio of Differentiated and Specialty products to drive long term profitable growth

-  Working on multiple cost optimization and productivity enhancement initiatives in the areas of sourcing, manufacturing, distribution, and operational excellence to maintain our healthy  EBITDA margin in this business

     India Consumer Healthcare (ICH):

-  Added 9 new products and 13 new SKUs to our portfolio during H1FY25

-  Continue to invest in media and trade spends to drive growth in Power Brands. Power Brands grew by 18% YoY in Q2 and H1 FY25 and contributed to 48% of ICH sales

-  Growth in i-range adversely impacted due to regulator mandated price reductions

-  E-commerce grew by over 30% YoY in Q2 and H1 FY25. Focus on improving the profitability of this channel through pricing, mix and investment optimization

-  Plan to widen our reach - Transition from a Pharmacy-dominant to an Omni-channel consumer healthcare company. Establish winning NPDs from online channel to offline, with general trade and modern trade ready SKUs

Q2FY25/H1FY25 Earnings Conference Call

Piramal Pharma Limited will be hosting a conference call for investors / analysts on 24^thOctober 2024 from 5:00 PM to 5:45 PM(IST)to discuss its Q2 and H1 FY25 Results.

The dial-in details for the call are as under:

About Piramal Pharma Limited:

Piramal Pharma Limited (PPL, NSE: PPLPHARMA I BSE: 543635), offers a portfolio of differentiated products and services through its 17* global development and manufacturing facilities and a global distribution network in over 100 countries. PPL includes Piramal Pharma Solutions (PPS), an integrated contract development and manufacturing organization; Piramal Critical Care (PCC), a complex hospital generics business; and the India Consumer Healthcare business, selling over-the-counter consumer and wellness products. In addition, one of PPL's associate companies, Abbvie Therapeutics India Private Limited, a joint venture between Abbvie and PPL, has emerged as one of the market leaders in the ophthalmology therapy area in the Indian pharma market. Further, PPL has a strategic minority investment in Yapan Bio Private Limited, that operates in the biologics / bio-therapeutics and vaccine segments. In October 2020, PPL received a 20% strategic growth investment from the Carlyle Group.

For more information, visit: Piramal Pharma | LinkedIn

* Includes one facility via PPL's minority investment in Yapan Bio

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