Cipla (CIPLA) Q1 24/25 earnings summary

Executive summary

• Branded prescription business grew 10% YoY, with chronic therapies at 61.5% share as per IQVIA MAT June 2024.

• North America achieved record quarterly revenue of $250 million, up 13% YoY, driven by differentiated portfolio and new launches.

• South Africa prescription business grew 19% YoY in local currency, maintaining its number one ranking.

• Unaudited standalone and consolidated financial results for the quarter ended 30 June 2024 were approved and released.

• Healthy net cash position maintained, with cash and cash equivalents near INR 9,000 crore as of June 2024.

Financial highlights

• Quarterly revenue reached INR 6,694 crore, up 7% YoY, led by India, North America, and South Africa.

• EBITDA margin (excluding other income) at 25.6%, up 154 bps YoY; EBITDA up 14% YoY.

• Profit after tax was INR 1,178 crore (17.6% of sales); effective tax rate at 27%.

• R&D expenses at INR 353 crore, 5.3% of revenue, with guidance for full-year R&D at 5-6% of sales.

• Cash and cash equivalents stood at INR 8,996 crore as of June 2024; total debt reduced to INR 547 crore.

Outlook and guidance

• Focus on growing ahead of market in India branded prescription, swift recovery in trade generics, and ramping up wellness portfolio.

• North America to focus on commercial execution and peptide launches, with sustainable quarterly run rate expected at $235-240 million.

• EBITDA margin guidance maintained at 24.5%-25.5% for the year; ROIC well over 30%.

• CapEx expected to rise to INR 1,500-1,800 crore annually, with 70% for growth and mostly India-focused.

• Chronic therapies and branded prescription portfolio expected to drive long-term growth in India.