richter group · pdf file on 18 june 2020 richter informed its shareholders that in gedeon...

Click here to load reader

Post on 13-Oct-2020

1 views

Category:

Documents

0 download

Embed Size (px)

TRANSCRIPT

  • Budapest, 3 August 2020

    Richter Group

    Report, H1 2020

  • H1 2020

    2

    Report, H1 2020

    Highlights Consolidated sales

    278,692 HUFm

    Operating margin

    18.8%

    Net profit*

    60,531 HUFm

    EPS

    326 HUF

    Gross margin

    58.3%

    +15.4%

    +53.8%

    +53.1%

    * Net income attributable to owners of the parent.

  • 67%

    5%

    10%

    10%

    8%

    H1 2020

    3

    Report, H1 2020

    Corporate review

    On 18 June 2020 Richter informed its shareholders that in Gedeon Richter Plc.

    the infulence (voting rights and ownership ratio) of the Hungarian State

    represented by HNMA Inc. has decreased from 25.25% to 15.25.%

    Simultaneously the influence (voting rights and ownership ratio) of Tihanyi

    Foundation increased from 0% to 10% in Gedeon Richter Plc.

    International

    investors

    Hungarian

    State Holding

    Company*

    Maecenas

    Universitatis

    Corvini

    Foundation

    Domestic

    investors

    * The legal and technical part of the share transfer is ongoing.

    Tihanyi

    Foundation

  • H12019 H12020

    Pharma W&R

    Consolidated

    sales by main

    business

    segments

    4

    Report, H1 2020

    +18.3%

    +6.2%

    Pharma

    Wholesale

    and retail

    +15.4%

    241,522 HUFm 278,692 HUFm

  • 29% 14% 33% 20% 4%

    Revenue by

    strategic pillars

    (%)

    5

    Report, H1 2020

    Branded

    generics BiosimilarsTraditionals Cariprazine

    33% 15% 36% 13% 3%

    WHC

    H12020

    H12019

  • Key products (1/2)

    6

    Report, H1 2020

    Cariprazine

    Central Nervous System

    Terrosa®

    Biosimilars

    Turnover

    HUF 45,103m (EUR 130.5m)

    +79.9%

    USA -

    HUF 7,946m one-off

    sales related milestone

    linked to the sales of

    Vraylar®

    Ongoing phase III

    clinical trials – MDD

    adjunctive therapy

    Singapore and Thailand -

    Reagila®

    in co-operation with Mitsubishi

    Turnover

    HUF 4,005m (EUR 11.6m)

    Rapid sales growth:

    EU: ~70%

    Japan: ~30% +229.6%

  • Key products (2/2)

    7

    Report, H1 2020

    WHC

    Nőgyógyászat

    Bemfola®

    Nőgyógyászat

    March 2020: another PRAC review

    procedure – suspension of sales of

    the product.

    Turnover

    HUF 6,887m (EUR 19.9m)

    Esmya®

    WHC

    -17.8%

    Due to the pandemic situation most

    of the fertility centres were closed for

    almost three months.

  • 27% 9% 29% 23% 12%

    CIS EU USA Other

    global

    markets

    HUN

    Sales by

    geographies (%)

    8

    Report, H1 2020

    HUF 229.9bn

    HUF 194.4bn

    +18.3%

    H12020

    H12019 30% 10% 32% 17% 11%

  • 0

    10 000

    20 000

    30 000

    40 000

    50 000

    60 000

    Hungary EU15 Russia USA

    H12019 H12020

    Sales by main

    regions (HUFm)

    9

    Report, H1 2020

    +1.4%

    +7.1%

    +0.2%

    +64.3%

    HUFm

    (HUFm) H12019 H12020 Change

    Hungary 20,159 20,436 277

    EU15 31,080 33,272 2,192

    Russia 41,362 41,441 79

    USA 32,225 52,948 20,723

  • Strengths and

    challenges in key

    markets

    10

    Report, H1 2020

    USA

    Significant increase in royalty income

    related to the sales of Vraylar®

    EU15

    Higher turnover of oral contraceptives

    and Terrosa®

    EU12

    Significant forestalling ahead of lockdown

    Russia

    Purchasing power under pressure

    Carry-over effect of 2019 price cuts

    China

    Delisting of Cavinton with effect from 1

    January 2020

    One-off sales related milestone income

    linked to Vraylar® EU15

    Decline in Bemfola®

    Loss of Esmya® sales

  • Consolidated

    Financials –

    Highlights

    11

    Report, H1 2020

    HUFbn Change % EURm as % of

    total revenues

    Total revenue 278.7 +15.4 806.2

    Gross profit 162.5 +18.2 470.0 58.3

    Profit from operations 52.3 +52.1 151.4 18.8

    Profit for the period* 60.5 +53.1 175.1 21.7

    HUF Change % EUR

    EPS (diluted) 326 +53.8 0.94

    * Net income attributable to owners of the parent.

  • 54%

    55%

    56%

    57%

    58%

    59%

    60%

    61%

    62%

    0

    100

    200

    300

    400

    500

    2 0 1 5

    2 0 1 6

    2 0 1 7

    2 0 1 8

    2 0 1 9

    H 1

    2 0

    1 9

    H 1

    2 0

    2 0

    COGS Gross profit Gross margin

    Increasing

    gross profit and

    margin (HUFbn)

    12

    Report, H1 2020

    HUFbn

    56,9%

    58,3%

    Increasing inventories eroded the gross

    profit

    Increases of wages in Central and

    Eastern Europe

    A significant increase in royalties

    receivable linked to the sales of Vraylar®

    (HUF 18,394m)

    Higher demand experienced linked to

    some of our products (Groprinosin –

    pandemic related forestalling)

    Favourable FX environment

    (%) H12019 H12020

    Pharmaceuticals 67.9 68.4

    Wholesale and retail 10.0 10.3

    Increasing turnover of certain higher

    margin OCs and EC

    China – delisting of Cavinton,

    Russia – compulsory price adjustment

  • 0%

    10%

    20%

    30%

    40%

    50%

    60%

    0

    20 000

    40 000

    60 000

    80 000

    100 000

    120 000

    140 000

    2015 2016 2017 2018 2019 H12019 H12020

    S&M costs S&M percentage of sales

    S&M costs

    (HUFm)

    13

    Report, H1 2020

    HUFm

  • 0%

    5%

    10%

    15%

    0

    10 000

    20 000

    30 000

    40 000

    50 000

    2015 2016 2017 2018 2019 H12019 H12020

    R&D costs R&D percentage of sales

    R&D costs

    (HUFm)

    14

    Report, H1 2020

    Split of R&D spending (%) – H1 2020

    HUFm

    25% 30% 28% 17%

    CNS original

    research (including

    cariprazine)

    Biosimilars WHC Branded

    generics

  • 0%

    2%

    4%

    6%

    8%

    10%

    12%

    14%

    16%

    18%

    20%

    0

    10 000

    20 000

    30 000

    40 000

    50 000

    60 000

    70 000

    2 0 1 5

    2 0 1 6

    2 0 1 7

    2 0 1 8

    2 0 1 9

    H 1

    2 0

    1 9

    H 1

    2 0

    2 0

    Profit from operation Operating margin

    Increasing operating

    profit and margin (HUFm)

    15

    Report, H1 2020

    HUFm

    Significant Vralyar® royalty and

    milestone income (similar amount of

    milestone income in the base period)

    14,2 %

    18,8%

    (%) H12019 H12020

    Pharmaceuticals 17.6 23.0

    Wholesale and retail 0.2 0.3

    Increase of gross profit

    Robust increase of sales in the

    pharmaceutical segment

    Impairment loss of HUF 4,202m linked to

    the WHC portfolio

  • Factors impacting

    pharma segment

    operating profit

    16

    Report, H1 2020 HUFm Increase Decrease Total

  • 17

    Report, H1 2020

    The effects of the

    COVID-19 pandemic

    Our employees

     Maintaining the health

    of our collegaues

    remains our most

    important aim

     Partial travel

    restrictions

     Social distancing,

    provision of protective

    gear, travel allowences

     Supporting remote

    work and providing the

    necessary equipment

     Continuous and up-to-

    date internal

    communication

    Sales

     Decrease in demand

    due to limitation of

    doctor-patient

    contact

     Reduction in supply

    due to stricter

    regulation of

    promotional activity

    based on personal visit

    Management Financials

     Increase in productivity

     Increase in inventory

    level

     Vertically integrated

    business model,

    flexible response

     Solid foundations:

    capital strength, no

    loans, constantly

    positive cash flow

     Mitigation of foreign

    exchange risks via

    natural hedging

View more