Corporate Briefing Notes
Sanofi-Aventis Pakistan Limited (SAPL) conducted its corporate briefing session today to discuss the financial results for CY22 and to highlight its future outlook.
Key Highlights
● To recall, company reported net sales of PKR18bn in CY22 (PKR4.8bn in 1QCY23) as compared to the PKR16bn (PKR4.3bnin 1QCY22) in the corresponding period last year. The increase in net sales was primarily driven by volumetric growth 12% YoY and price by 5% YoY, respectively.
● During CY22, Generic medicines contributed 15% followed by Consumer Healthcare (CHS) by 22% and vaccines by 45% to the topline of company.
● SAPL reported gross margin of 26%, while profit before tax of clocked in at PKR724mn in FY22.
● The company posted PAT to PKR167mn in CY22 as compared to PKR905mn in SPLY (LAT: PKR357mn in 1QCY23). The deviation in earnings was primarily affected by the growing inflation, extensive exchange loss and higher interest cost.
● Moreover, SAPL launched 503 products since January 2022.
● Other expenses experienced a substantial surge, showing a remarkable growth of 1.4x YoY in CY22. This significant increase was caused by massive exchange losses during the said period and it still continues in the present FY23.
● Similarly, the finance cost demonstrated a notable upward trajectory of 75% YoY to PKR49mn in CY22, on the back of rising interest rates during the period.
● The management also confirmed about the share purchase agreement between SAPL and Investor Consortium led by Packages Limited in May 2022.
Future Outlook
● Going-forward, the management highlighted the key challenges that the pharmaceutical industry is going through. It includes depleting foreign exchange reserves, shortages of medicines, higher interest rates, and high inflation. However, the company focuses on the expansion of business locally as well as on the international front to mitigate the uncertain risks.
Important Disclosures
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