Lupin Q1 Results FY2023, Net loss at Rs. 868 million

On 3rd August 2022, Lupin announced its quarterly results for the first quarter of FY2023.

Q1FY23 Key Highlights:

- The company reported its revenue from operations stood at Rs. 36040 million, with a drop of 14.9% YoY.

- The EBITDA was reported at Rs. 2379 million with a drop of 76% YoY.

- The Profit Before Tax stood at Rs. 23 million with a drop of 99% YoY.

- The company reported a Net loss of Rs. 868 million

Business Highlights:

- North America sales for Q1 FY2023 were Rs. 10,104 million, down 24.2% YoY accounting for 28% of Lupin’s global sales. The Company filed 4 ANDAs in the quarter, received 4 ANDA approvals from the U.S. FDA, and launched 1 product in the quarter in the U.S. The Company now has 167 generic products in the U.S.

- India formulation sales for Q1 FY2023 were Rs. 14,920 million, down 8.8% YoY accounting for 41% of Lupin’s global sales. The company launched 6 brands across therapies during the quarter. 

- Growth Markets registered sales of Rs. 4,237 million for Q1 FY2023, up 27.3% YoY. 

- Brazil sales were BRL 57 million for Q1 FY2023

- Mexico sales were MXN 213 million for Q1 FY2023.

- Philippines sales were PHP 434 million for Q1 FY2023

- Australia's sales were AUD 25.2 million for Q1 FY2023

- Europe, Middle-East and Africa sales for Q1 FY2023 were Rs. 3,335 million, up 27.6% YoY. 

- South Africa's sales were ZAR 282 million for Q1 FY2023. Lupin is the 6th largest player in South Africa in the total generics market (IQVIA May 2022). 

- Germany's sales were EUR 9.2 million for Q1 FY2023, compared to EUR 8.4 million for Q4 FY2022 and EUR 7.4 million for Q1 FY2022.

- Global API Sales for Q1 FY2023 were Rs. 2,551 million, up 3.7% YoY.

- Investment in R&D was Rs. 3,477.8 million (9.6% of sales) for Q1 FY2023 as compared to Rs. 3442 million (8.9% of sales) for Q4 FY2022.

- Lupin received approval for 4 ANDAs from the U.S. FDA in the quarter. Cumulative ANDA filings with the U.S. FDA stand at 459 as of June 30, 2022, with the company having received 301 approvals to date. The Company now has 54 First-to-File (FTF) filings including 21 exclusive FTF opportunities. Cumulative U.S. DMF filings stand at 173 as of June 30, 2022. 

Commenting on the results, Mr. Nilesh Gupta, Managing Director, Lupin Limited said, “Our numbers are muted this quarter, but we expect a strong bounce back Q2 onwards. Our U.S. sales took a significant dip as we took several strategic decisions to pave the way for building a sustainable and profitable business. During the quarter we pared down inventories and we took shelf stock adjustments on select products. While we continue to see price erosion in our US business and inflation in input materials, our India business continues to do well growing ahead of the market. All other geographies continue to perform well, and we have now implemented several optimization measures including addressing our workforce in operations and supporting functions to improve our cost position and ensure competitiveness. While the benefits of this optimization will start accruing Q2 onwards, we are now focused on getting back on the growth path driven by growth in key markets like India and multiple important complex generic launches in the US and other developed markets. On the compliance front, we have now satisfactorily addressed both Goa and Somerset, and continue our efforts to be best in class in quality and compliance across our network.”