Balaxi Pharmaceuticals further diversifies geographical mix, reports 23% YoY increase in Profit After Tax for Q1FY22

HYDERABAD, India, July 20, 2021 /PRNewswire/ -- Balaxi Pharmaceuticals Limited (Balaxi), a branded IPR-based pharmaceutical company headquartered in Hyderabad, reported its results for the quarter and year ended 30^th June 2021.

Financial Highlights - Q1 FY22:

• The Company recorded a revenue of INR 583 million in Q1 FY22, registering a 12% growth year-on-year, led by Pharma and Branded consumer goods segments.
• Higher contribution from newer geographies such as Guatemala also led Pharma segment to grow by 11% YoY
• With new launches and increasing customer acceptance, Branded consumer segment Revenue increased by 128% YoY
• EBITDA of INR 126 million for Q1 FY22; EBITDA margin stood at 21.5% higher by 320 bps due to favourable product mix. Higher Branded products in overall mix led to margin improvement in Q1FY22
• Reported PAT of INR 107 million for Q1FY22, higher by 23% YoY

Revenue Mix:

Gross Profit Breakup

• For Q1FY22, Pharmaceutical business segment contributed 61% of the consolidated revenues and 75% of the total gross profit. Share of Pharmaceuticals business in Total revenue increased on account of contribution from newer geographies. In gross profits, the contribution from pharmaceutical segment increased by 200 bps YoY.
• Share of YAP branded consumer products revenue grew significantly, from 13% in Q1FY21 to 27% in Q1FY22. Biscuits continues to remain a major contributor in this segment, contributing more than 90% of Revenue to this segment. The Company has launched various new products like tooth paste, ketchup to its existing portfolio.
• Ancillary business contributed 12% to the revenue in Q1FY22

Update on Pharmaceutical Product Registrations/Import Permits:

Commenting on the performance, Mr. Ashish Maheshwari, Chairman and Managing Director said, "Balaxi has set its footprints into the newer geography of Nicaragua, with the registration pipeline of 90 products, reflecting the company's 'Land and Expand' strategy. As on date Balaxi has 556 pharmaceutical product registrations/import permits, spanning across 5 countries, and has a robust pipeline of 750 product registrations, including those submitted to MOH spanning across 6 countries.

Balaxi saw an increase in the share of pharmaceutical business from Guatemala and Dominican Republic, showcasing that the newer geographies have started contributing to the company's overall pharmaceutical segment. The Company continues with its endeavour of remaining debt free and maximise stakeholder value. The company remains confident about achieving its long-term growth aspirations and looks forward to expanding in additional geographies. Balaxi aims to expand in 20 frontier markets over the next 5 years."

Pharmaceutical Business Overview: 

• The Company generated 55% of the pharmaceutical revenue from Angola, followed Dominican Republic 31% and Guatemala 14% in Q1FY22.
• The share of Guatemala and Dominican Republic increased during the quarter, which would help the company in further strengthening its geographical mix.
• The product split between Branded & Generics is at 36:64 in Q1FY22. Product mix at Angola remains highly attractive at 55:45.

Branded Consumer Business overview:

• Branded consumer business saw strong revenue growth of 128% YoY and Operating profits growth of 165% YoY.
• Increasing recognition of YAP brand across region has helped the company to report higher revenue during Q1FY22. New product launches have also helped the company to gain more traction.

About Balaxi Pharmaceuticals Limited:

Balaxi Pharmaceuticals Ltd is a branded IPR-based pharmaceutical player focusing on frontier markets, with a vast and growing portfolio of prescription and OTC drugs, across multiple therapeutic segments. The Company is engaged in supplying branded and generic medicines through its well-built distribution network across Angola, Guatemala and Dominican Republic. These products are procured from WHO GMP certified contract manufacturers based in India, China and Portugal. Balaxi is present in Ancillary business and building a Branded Consumer Products business which complements pharmaceutical business and provides operating leverage on the back of well-established on-ground infrastructure and channel relationships.

Forward-Looking Statement:

Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, technological risks, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward-looking statements. Balaxi Pharmaceuticals Limited will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.