Sanofi Consumer Healthcare India Limited (SANOFICONR) Q4 2023 earnings summary

Executive summary

• FY 2023 revenue grew 2.9% to ₹28,511 million; profit before exceptional items and tax rose 13.1% to ₹8,280 million, while PAT fell 2.8% to ₹6,032 million, partly reflecting prior-year exceptional income.

• The India for India strategy focused on diabetes, consumer healthcare, innovation and go-to-market efficiency; the proposed consumer healthcare demerger remained subject to NCLT approval.

Financial highlights

• FY 2023 revenue from operations was ₹28,511 million versus ₹27,701 million; domestic retained-business revenue grew 1.2%, or 5.4% excluding the Lantus NLEM impact, while exports grew 27% YoY.

• Profit before exceptional items and tax rose to ₹8,280 million from ₹7,323 million; PAT was ₹6,032 million versus ₹6,206 million, with prior-year exceptional income affecting comparability.

• Revenue from India was ₹23,227 million, 81.5% of total revenue; operating profit margin increased to 27.43% from 24.37%.

• Operating cash flow was ₹2,308 million versus ₹3,987 million; cash and cash equivalents closed at ₹3,929 million versus ₹10,049 million.

• EBITDA before exceptional items was ₹8,693 million; EPS was ₹261.91 versus ₹269.47.

Outlook and guidance

• New products, operational efficiencies, go-to-market initiatives, supply localization and partnerships were identified as growth drivers; no numerical FY 2024 financial guidance was stated.

• Soliqua was expected to launch in India in FY 2024; Insutage and Cetapin S were also planned for launch, with several pipeline launches expected over the next two years.

• The consumer healthcare business was expected to become operational as a separate entity in H2 2024, subject to approvals; the demerger was intended to enable focused growth in both businesses.