Plethico Pharmaceuticals declared the results for the quarter ended & year ended December’08 and held a tele conference call on 1st April 2009 to discuss the results and its future growth strategies. The key takeaways from the con- call are as follows: Financial Performance
Net sales declined by 3% to Rs 116.97 crore for the quarter ended December’08 on the standalone basis. Operating profit margins expanded healthy 350 bps to 30.6% as a result operating Profit increased by 10% to Rs 35.81 crore. Higher interest and depreciation by 130% and 109% to Rs 6.39 crore and 3.48 crore resulted in PBT to report degrowth of 13% to Rs 26.16 crore. After accounting forex losses of Rs 68.25 crore due to increase in the forex loan liability, the company reported net losses of Rs 43.12 crore.
On consolidated basis
For the quarter ended December’08
- Net sales clocked at Rs 222.41 crore and net loss of Rs 11.08 crore
- Segment wise, Herbal/Nutraceutical contributed (91%) and Allopathic business (12%)
- Geographically, sales, in percentage terms, India (5%), US (54%), CIS (6%) Africa (8%) and Third-Front (26%)
For year ended December’08
- The net sales stood at Rs 969.89 crore and net profit clocked at Rs 191.61 crore.
- Segment wise, Herbal/Nutraceutical contributed (85%), Contract manufacturing (4%) and Allopathic business (11%).
- Geographically, sales, in percentage terms, stands at India (12%); US (45%); CIS (13%); Africa (10%) and Third-Front countries (23%)
Other Highlights
- Natrol product has contributed 37% of total sales; MRI 18%, Prolab 7% and other products contributes 38% to the sales.
- Debt on the books as on 31st December’08 is at Rs 173.15 crore.
- Cash on the books as on 31st December’08 is at Rs 24.41 crore.
- On consolidated basis Debtor’s days stands at 144 days and inventory at 35-40 days
- Natrol Global (subsidiary) Total income for the quarter ended December’08 stood at Rs 137.66 crore and PAT at Rs 32.07 crore.
- Company gave revenue guidance of Rs 1000 crore and PAT of Rs 200 crore for the CY’08 but achieved 969.89 crore and 123.35 crore. This is due to slow down in the CIS market and Forex losses of Rs 68.25 crore.
- Company incurred Capex of Rs 272 crore in 2008. Of which Rs 172 crore spent for the manufacturing plant in UAE which is expected to be operational by end of June 2009 and Rs 100 crore used to acquire 20% stake in the CIS retail Pharmaceutical chain Trixon Holdings.
- The company expects the revenues from the CIS region will decrease as Demand from the region dried up and hopes it may recover after two quarters. It also expects revenues from Central region may decrease as the tender business dried up in that region.
- Company expects 2009 to be a year of consolidation.
- Currently, PAT margin (excluding Forex losses) stood at 19% and company expects it will decrease to 16% in 2009.
- Expects a growth of 10% in revenues in 2009