Sun Pharma Q4 Results 2022: Net loss at Rs.22772 million for Q4FY22

On 30th May 2022, Sun Pharma announced its quarterly results for the last quarter of FY2022.

Key Highlights:

Q4FY22:

- Consolidated sales from operations at Rs. 93,861 million, growth of 11% YoY

- India formulation sales at Rs. 30,956 million, up 16% YoY  

- US formulation sales at US$ 389 million, growth of 5% YoY

- Emerging Markets formulation sales at US$ 206 million, up by 7% YoY

- Rest of World formulation sales at US$ 178 million, up by 7% YoY 

- R&D investments at Rs. 5,433 million compared to Rs. 5,571 million for Q4FY21  

- EBITDA at Rs. 22,797 million, up by about 14.6% YoY, with an EBITDA margin of 24.3% 

- The reported net loss for Q4FY22 was at Rs. 22,772 million.

FY22:

- Consolidated sales from operations at Rs. 384,264 million, a growth of 15.6% 

- India formulation sales at Rs. 127,593 million, up by 23%.  

- US formulation sales at US$ 1,526 million up by 12%. 

- Emerging Markets formulation sales at US$ 905 million up by 16%

- Rest of World formulation sales at US$ 732 million, up by 11%.  

- R&D investments at Rs. 22,194 million compared to Rs. 21,499 million for FY22 

- EBITDA at Rs. 101,697 million up about 23.6%, with an EBITDA margin of 26.5%, an expansion of 170bps YoY.

- Reported net profit for full-year FY22 was at Rs. 32,727 million compared to Rs. 29,038 million, up by about 13% YoY.  

India Business – Market Leadership:

- For FY22, sales of formulations in India were at 127,593 million, up by 23% YoY. 

- For Q4FY22 sales were at Rs. 30,956 million, up by 16% over Q4FY22 and accounting for 33% of total sales. 

- Sun Pharma is ranked No.1 and holds 8.3% market share in the over Rs.1,688 Billion Indian pharmaceutical market as per AIOCD AWACS MAT March-2022 report.

- For Q4FY22, the company launched 11 new products in the Indian market. 

US Formulations (including Taro):

- Formulation sales in the US for the full year FY22 were $1,526 million recording a growth of 12% over the same period last year.

- For Q4FY22, sales were US$ 389 million, a growth of 5% over Q4 last year and accounting for about 31% of total consolidated sales

Taro Performance:

- Taro’s FY22 sales were $561 million, up by about 2% over same period last year. 

- Excluding the impact from the settlement and loss contingencies charges in both periods, adjusted net profit for FY22 was $126.4 million compared to US$ 141.4 million in FY21. 

- Taro’s reported net profit for FY22 was $58.3 million. Taro posted Q4FY22 sales of $143 million, down 3% YoY, and net profit of about $27.4 million, lower by 11.6% over adjusted net profit of Q4 last year

Emerging Markets:

- Our formulation sales in Emerging Markets for the full year FY22 were at US$ 905 million, up by 16% over the same period last year. 

- Emerging Markets sales were at US$ 206 million for Q4, a growth of 7% over Q4 last year and accounting for about 17% of total consolidated sales for the quarter.  

Rest of World Markets:

- Formulation sales in Rest of World (RoW) markets, excluding US and Emerging Markets, for the full year FY22 were at $732 million, up by about 11% over the same period last year. 

- RoW market sales were at $178 million in Q4FY22, up by about 7% over Q4 last year and accounting for approximately 14% of total consolidated sales.

Active Pharmaceutical Ingredients (API):

- For the full year FY22, external API sales were at Rs.18,354 million, lower by about 6% over the same period last year.

- For Q4FY22, external sales of API were at Rs.4,137 million, lower by about 5% over Q4 last year. 

Dilip Shanghvi, Managing Director of the Company said, “FY22 was a good year with strong topline and EBITDA growth. All our geographies have recorded double-digit growth and profitability has improved despite rising costs. The specialty business continues to ramp up strongly with global Ilumya sales recording 81% growth to reach US$315 million in FY22. Our India business continues to grow faster than the market, leading to an increase in market share. We continue to focus on expanding our global specialty business, growing all our businesses, and improving operational efficiencies.”

The Board has proposed a final dividend of Rs. 3.0 per share for the year FY22. This is in addition to the interim dividend of Rs. 7.0 per share paid in FY22, taking the total dividend for FY22 to Rs. 10.0 per share compared to Rs. 7.5 per share for FY21.