Aventis Pharma Limited announced unaudited results for the quarter ended 30th June 2003. The Company is 50.1 per cent owned by a subsidiary of Aventis SA, which has a leading international presence in the prescription drug business.
The net sales (excl. excise duty) increased by 9.4 per cent to Rs. 175.30 crore in quarter ended 30th June 2003 compared with quarter ended 30th June 2002. EBIDTA (before exceptional items) was Rs 39.10 crore (22.3 per cent of sales) compared to Rs 27.70 crore (17.3 per cent of sales) – an increase of 41 per cent. PBT before exceptional items rose 47 per cent to Rs 35.10 crore. The net profit after tax & exceptional items was Rs 23.30 crore compared to Rs 17 crore – an increase of 37 per cent. Earnings Per Share (EPS) for the quarter was Rs 10.13. Exceptional expense was on account of amortization of marketing and technical rights.
Domestic net sales grew by 8.5 per cent to Rs 130.10 crore in the quarter under review, compared to Rs 120 crore in the corresponding quarter of 2002. After excluding the impact of discontinued brands, sales growth was 10 per cent.
Strategic brands continued to perform strongly, growing as a group by 17 per cent in the quarter, led by Cardace (27 per cent), Targocid (24 per cent), Clexane (23 per cent), Amaryl (20 per cent) & Allegra (17 per cent) reflecting the strong brand equity and secondary demand for these brands. Tavanic declined by 26 per cent as the Company reduced its investments in this highly competitive category.
The Company’s other major brands continue to maintain their strong leadership positions in their segments, with double-digit growths achieved in Combiflam (+27 per cent), Rabipur (20 per cent), and Trental (+36 per cent). Avil, and Daonil showed single-digit growths, while Soframycin declined in the quarter, but remained leader in its category.
Exports were Rs 45.20 crore (Direct Rs 45.10 crore and Indirect Rs 0.1 crore) in the quarter under review as against Rs 40.40 crore (Direct Rs 37.80 crore and Indirect Rs 2.60 crore) in the corresponding quarter of 2002, a growth of 12 per cent.
EBIDTA increased by 41 per cent over the same period last year to reach Rs. 39.10 crore, with EBIDTA margins increasing to 22.3 per cent in Q2 2002 (versus 17.3 per cent in Q2 2002). This improvement reflects an overall strong business performance. A favorable domestic product mix and growth in exports drives gross margin improvements. In addition, medico-marketing investments continue to be optimized and other efficiency measures keep costs well under control.
The Board has declared an Interim Dividend of Rs 3.50 per share at their meeting. The dividend will absorb Rs 9.10 crore (inclusive of Dividend Distribution Tax).
Commenting on the Company’s results, Ramesh Subrahmanian, Managing Director, Aventis Pharma Limited, said: “Our brand and market leadership strategy continues to deliver stand-out results in a very competitive and sluggish domestic market. The continued focus on tight execution and improved business processes, is generating strong business growth, and continues to deliver improved quality of care to patients and physicians in India.
“The launch of LANTUS (on 22nd July 2003), the world’s first and only once daily 24-hour basal insulin, reflects Aventis’ commitment to bringing the latest innovative therapies in a speedy manner to the Indian population. We expect LANTUS to become the flagship of our diabetes portfolio and a vital tool in the fight against diabetes.”