JB Pharma records revenue growth of 30% to Rs 785 cr in Q1FY23

Mumbai, Aug 5 JB Pharma, one of the fastest growing pharmaceutical companies in India, announced its financial results for the first quarter ended on June 30, 2022.

For the first quarter, the company recorded revenue of Rs 785 crore as compared to Rs 606 crore, registering growth of 30 per cent over the corresponding quarter. Operating EBITDA (Earnings Before Interest Depreciation and Taxes) increased by 16 per cent to Rs 190 crore as compared to Rs 164 crore. Profit after tax stood at Rs 105 crore as compared to Rs 119 crore on account of higher treasury income in Q1FY 22, non-cash ESOP cost, Depreciation on account of acquired brands and finance costs in Q1FY23.

Commenting on financial results, Nikhil Chopra, CEO and Wholetime Director, JB Pharma said: "Our operating performance in FY23 started on a strong note. We continued the momentum in our domestic business, registering market beating growth and achieving a new milestone in quarterly run-rate revenue of over Rs 400 crore. Integration of Sanzyme's product range and Azmarda have progressed as per plan. We also completed the acquisition of a portfolio of paediatric brands which will enable us to offer a more comprehensive product basket to paediatricians, helping us to serve them better. International business also saw strong growth with a robust order pipeline and out-performance in the CMO segment. With this start, I believe we have built good momentum for the year ahead and together with our continued focus on productivity enhancement and cost optimisation, we are confident of delivering profitable growth."

JB recorded robust revenue growth at 30 per cent despite a challenging operating environment, while the organic growth was pegged at around 20 per cent.

Domestic Formulations business continued its strong performance growing at 34 per cent to Rs 418 crore. International business revenues grew by a healthy 28 per cent to Rs 366 crore. All the three businesses -- Exports formulations, CMO and API business -- performed well in the quarter. Operating EBITDA grew by 16 per cent to Rs 190 crore, while gross margins were at a healthy 62.7 per cent v/s 64.2 per cent. Non-cash ESOP cost as a percentage to reported EBITDA was at 10 per cent as compared to 20 per cent of reported EBITDA in Q4 FY22. Other expenses included the normalization of marketing expense as compared to Q1 FY22, and increase in fuel, freight and logistics in the exports business on a YOY basis, whilst some softening was seen in international freight

Domestic business records highest ever sales in a quarter of Rs 418 crore registering growth of 34 per cent, while organic revenues from the domestic business also outpaced the industry growth. JB Pharma continues to remain the fastest growing company among the top 25 as per IQVIA MAT June '22 data and as per MAT June '22 data, JB Pharma ranked 23rd as compared to 25th in Q4 FY22. The acquired brands from Sanzyme performed well with Sporlac gaining market share during the quarter and good revenue traction achieved from the successful transition of the acquired brand Azmarda.

International business recorded robust revenue growth of 28 per cent to Rs 366 crore with exports formulations, CMO and API business recorded growth of 11 per cent, 108 per cent and 17 per cent, respectively. South Africa unit registered growth in both public & private markets riding on robust tender demand and new launches in private market. Russia local sales remained steady with receivables looking positive from the region. The CMO revenue crossed Rs 100 crore for the first time in a quarter due to strong surge on account of demand in lozenges and liquids from key partners. Overall the order book continues to remain robust.