Lupin Limited [BSE: 500257 | NSE: LUPIN], a leading pharmaceutical company, released its financial results for the quarter and fiscal year ending March 31, 2023. The Board of Directors recorded these audited results during a meeting that was held today. Based on the long-term forecast, the Board has suggested a 200% dividend.
Income Statement highlights – Q4 FY2023
With a gross margin of 59.6%, the gross profit was INR 25,802 million as opposed to INR 25,375 mn in Q3 FY2023. Compared to Q3 FY2023, when personnel costs were INR 7,640 mn, they were INR 7,730 mn, or 17.9% of sales. Compared to INR 13,351 mn in Q3 FY202, manufacturing and other expenses were 30.1% of sales at INR 13,030 mn. For the quarter, INR 3,050 mn (7.0% of revenues) was allocated on R&D.
Balance Sheet highlights.
As of March 31, 2023, operating working capital was INR 57,321 million.
The quarter’s capital expenditure came to INR 1,502 million.
As of March 31, 2023, there was INR 25,265 million in net debt.
As of March 31, 2023, the company’s Net Debt-Equity ratio was 0.20.
Nilesh Gupta, the managing director of Lupin Limited, commented on the results, saying, “We were able to drive continued improvement in operating margins on account of improved growth in India, improvement of margins in the U.S., as well as growth in other areas like our API business, EMEA and APAC regions. According to IQVIA, our India business experienced ex-diabetes growth of 15%+.
We increased our margins for the third consecutive quarter by maximizing our portfolio, streamlining our spending, and concentrating more R&D funds on complicated goods. We are dedicated to maintaining this good momentum into the new year and fostering robust regional growth, particularly in India and the United States, helped by our most recent increases in our sales force and major new product releases, respectively.
Highlights of the operation.
N. America.
In FY2023, North America accounted for 33% of Lupin’s global revenues with sales of INR 54,173 million as opposed to INR 57,556 mn in FY2022. Sales during the fourth quarter of FY2023 totaled INR 15,503 million, up 1.5% from INR 15,271 mn in the third quarter and up 9.5% from INR 14,162 mn in the fourth quarter of FY2022, accounting for 36% of Lupin’s global sales.
Sales in the US for FY2023 were USD 632 million as opposed to USD 738 in FY2022. Sales for Q4 FY2023 were USD 175 million, down from USD 177 million for Q3 FY2023 and USD 181 million for Q4 FY2022.
The company released 1 product in the United States during the quarter and submitted 10 ANDAs, seven of which were approved by the American Food and Drug Administration. The company currently sells 162 generic medications in the United States.
According to prescriptions, Lupin is still the third-largest pharmaceutical company in both the generic and overall US markets (IQVIA March 2023). In the United States, Lupin is the market leader in 41 of its generic drugs and ranks in the top three in 109 of them (IQVIA March 2023).
India accounted for 37% of Lupin’s worldwide sales in FY 2023 with formulation sales of INR 60,759 mn, up 1.2% from INR 60,042 mn in FY2022. The INR 14,786 million in Q4 FY2023 represented 34% of Lupin’s global revenues, down 2.8% from INR 15,213 million in Q3 FY2023 but up 9.4% from INR 13,511 million in Q4 FY2022.
Sales of Formulations for the India Region decreased by 3.1% in the quarter compared to Q3 FY2023 but increased by 8.9% compared to Q4 FY2022. During the quarter, the company introduced 4 brands across various therapies.
According to IQVIA MAT Mar 2023, Lupin is the sixth-largest pharmaceutical firm in India.
Growth Markets (LATAM and APAC)
The growth markets segment accounted for 11% of Lupin’s global sales in FY2023 with sales of INR 17,258 mn, up 23.1% from INR 14,019 mn in FY2022. Sales for the fourth quarter of FY2023 were INR 4,385 mn, up 4.7% from INR 4,187 mn in the previous quarter and up 15.1% from INR 3,810 mn in the previous quarter. This amount represented 10% of Lupin’s global sales.
Brazil saw sales of BRL 273 million in FY2023, up from BRL 224 million in FY2022.
Sales for Q4 FY2023 were BRL 75 million, up from BRL 70 million for Q3 FY2023 and BRL 64 million for Q4 FY2022.
Sales in Mexico were MXN 806 million in FY2023, up from MXN 713 million in FY2022.
Sales for Q4 FY2023 were MXN 152 million, down from MXN 183 mn and MXN 217 mn for Q3 FY2023 and Q4 FY2022, respectively. Sales in the Philippines totaled PHP 1,895 million in FY2023, up from PHP 1,881 million in FY2022.
Sales for Q4 FY2023 totaled PHP 542 mn, up from PHP 475 mn and PHP 452 mn for Q3 FY2023 and Q4 FY2022, respectively.
Sales in Australia totaled AUD 96 million in FY2023, up from AUD 74 million in FY2022.
Sales for Q4 FY2023 were AUD 24 million, up from AUD 21 million for Q3 FY2023 and AUD 21 million for Q4 FY2022.
Europe, Middle-East and Africa (EMEA)
The EMEA region accounted for 10% of Lupin’s global sales in FY2023 with INR 15,514 mn in sales, an increase of 14.1% over INR 13,592 mn in FY 2022. Sales for the fourth quarter of FY2023 totaled INR 4,535 million, up 19.3% from Q3 FY2023’s INR 3,802 mn and 11.4% over Q4 FY2022’s INR 4,072 mn, accounting for 11% of Lupin’s worldwide sales.
Sales in South Africa were ZAR 1,364 million in FY2023, down from ZAR 1,375 million in FY2022.
Sales for Q4 FY2023 were ZAR 417 million, down from ZAR 426 million for Q4 FY2022 and ZAR 308 million for Q3 FY2023. According to IQVIA’s February 2023 report, Lupin is the eighth-largest player in South Africa’s generics market.
Sales in Germany were EUR 40 million in FY2023, up from EUR 32 million in FY2022.
Sales for Q4 FY2023 were EUR 10 million, down from EUR 11 million for Q3 FY2023 and EUR 8 million for Q4 FY2022.
Worldwide API sales for FY2023 totaled INR 11,092 mn, an increase of 12.0% over INR 9,904 mn in FY2022; these sales represented 7% of Lupin’s global sales.
Global API
Worldwide API sales for FY2023 totaled INR 11,092 mn, an increase of 12.0% over INR 9,904 mn in FY2022; these sales represented 7% of Lupin’s global sales. Sales for the fourth quarter of FY2023 totaled INR 3,226 mn, up 14.6% from the third quarter and 46.5% from the fourth quarter of FY2022, accounting for 7% of Lupin’s global sales.
Research and Development
In comparison to INR 3,441 million (8.9% of sales) for Q4 FY2022, investment in R&D was INR 12,800 mn (7.9% of sales) for FY2023 and INR 3,050 mn (7.0% of sales) for Q4 FY2023. The U.S. FDA granted permission to Lupin for 7 ANDAs during the quarter. As of March 31, 2023, the company has submitted a total of 463 ANDAs to the American FDA, and 308 had been approved. As of right now, the company has filed 55 First-to-File (FTF) documents, including 22 unique FTF chances. The total number of U.S. DMF filings as of March 31, 2023, is 169.
About Lupin
Lupin is an innovation-led transnational pharmaceutical company headquartered in Mumbai, India. The Company develops and commercializes a wide range of branded and generic formulations, biotechnology products, and APIs in over 100 markets in the U.S., India, South Africa, and across the Asia Pacific (APAC), Latin America (LATAM), Europe, and Middle East regions.
The Company enjoys a leadership position in the cardiovascular, anti-diabetic, and respiratory segments and has a significant presence in the anti-infective, gastro-intestinal (GI), central nervous system (CNS), and women’s health areas. Lupin is the third-largest pharmaceutical company in the U.S. by prescriptions. The Company invested 7.9% of its revenue in research and development in FY23.
Lupin has 15 manufacturing sites, 7 research centers, more than 20,000 professionals working globally, and has been consistently recognized as a ‘Great Place to Work’ in the Biotechnology & Pharmaceuticals sector.
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