HYPERA S.A. Hypera Pharma reports Net Revenue growth of 17.7% and reaches the highest ever
recorded EBITDA from Continuing Operations of R$790.7 million in 2Q23
São Paulo, July 27, 2023 - Hypera S.A. ("Hypera Pharma" or "Company"; B3: HYPE3; Bloomberg: HYPE3 BZ; ISIN:
BRHYPEACNOR0; Reuters: HYPE3.SA; ADR: HYPMY) announces its financial results for the 2nd quarter of 2023. Financial data disclosed here are taken from the consolidated financial statements of Hypera S.A., prepared in accordance with the Brazilian Accounting Pronouncement Committee (CPC) and the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB).
2Q23 Highlights
- Net Revenue of R$2,231.1 million, up 17.7% versus 2Q22
- Highest ever recorded EBITDA from Continuing Operations (excl. Others) of R$772.7 million, up 14.6% vs. 2Q22
- Cash Flow From Operations of R$578.1 million, highest level ever recorded in a second quarter
- Interest on Equity approval of R$194.8 million
Table 1
(R$ million) | 2Q22 | % NR | 2Q23 | % NR | Δ % | 1H22 | % NR | 1H23 | % NR | ∆ % |
Gross Revenue, net of Returns and Unconditional Discounts | 2,154.7 | 113.7% | 2,549.6 | 114.3% | 18.3% | 3,864.1 | 114.0% | 4,489.8 | 114.3% | 16.2% |
Net Revenue | 1,895.6 | 100.0% | 2,231.1 | 100.0% | 17.7% | 3,389.2 | 100.0% | 3,929.3 | 100.0% | 15.9% |
Gross Profit | 1,208.0 | 63.7% | 1,409.2 | 63.2% | 16.7% | 2,147.2 | 63.4% | 2,495.3 | 63.5% | 16.2% |
SG&A (excl. Marketing and R&D) | (225.3) | -11.9% | (291.8) | -13.1% | 29.5% | (432.0) | -12.7% | (540.9) | -13.8% | 25.2% |
Research & Development | (33.9) | -1.8% | (42.5) | -1.9% | 25.3% | (76.4) | -2.3% | (83.6) | -2.1% | 9.4% |
Marketing | (312.2) | -16.5% | (354.2) | -15.9% | 13.5% | (545.2) | -16.1% | (622.5) | -15.8% | 14.2% |
EBITDA from Continuing Operations (excl. Others) | 674.1 | 35.6% | 772.7 | 34.6% | 14.6% | 1,174.1 | 34.6% | 1,353.0 | 34.4% | 15.2% |
EBITDA from Continuing Operations | 683.3 | 36.0% | 790.7 | 35.4% | 15.7% | 1,188.9 | 35.1% | 1,378.2 | 35.1% | 15.9% |
Net Income from Continuing Operations | 455.5 | 24.0% | 504.4 | 22.6% | 10.7% | 805.0 | 23.8% | 843.8 | 21.5% | 4.8% |
Cash Flow from Operations | 535.1 | 28.2% | 578.1 | 25.9% | 8.0% | 846.8 | 25.0% | 879.6 | 22.4% | 3.9% |
EARNINGS CONFERENCE CALL - PORTUGUESE: 07/28/2023, 11am (Brasília) / 10am (New York)
Webcast:click here/ Phone: +55 (11) 4700-9668ID: 895 0813 5463 Passcode: 559812
Replay: ri.hypera.com.br
EARNINGS CONFERENCE CALL - ENGLISH: (Simultaneous translation): 07/28/2023, 11am (Brasília) / 10am (New York)
Webcast:click here/ Phone: +1 (646) 558-8656ID: 895 0813 5463 Passcode: 559812
Replay: ir.hypera.com
IR contacts
+55 (11) 3627-4206
1+55 (11) 3627-4097 ri@hypera.com.br
Operating Scenario
Hypera Pharma's Net Revenue grew 17.7% in 2Q23, when compared to 2Q22, and reached R$2,231.1 million, mainly driven by: (i) the sell-out growth of Company's important Power Brands¹; and (ii) the contribution of products launched in the last 2 years, which represented 73.8% of the Net Revenue added in the period, when compared to the same period of the previous year, with emphasis on the launches focused in gynecology, orthopedics, gastroenterology, central nervous system and cardiology, major categories in which Hypera Pharma has been strengthening its participation in the last years and has several projects in its innovation pipeline.
Sell-out growth in 2Q23 was 8.6%², or 4.7 percentage points lower than market growth³, and was affected by the strong year-on-year growth recorded in June 2022, when the Company grew 33.0% over June 2021, or 9.6 percentage points above the market growth, benefiting from its internal inventory policies for raw materials and finished products at customers that ensured the supply of its products in pharmacies during the period of more significant unavailability of medicines in Brazil.
The sell-out compounded annual growth rate for the last 2 years (CAGR 2Q23 vs. 2Q21) was 17.0% in the quarter, or
0.4 percentage point higher than the market, reflecting the acceleration in the pace of launches in the last few years and the recent investments in leading brands and in increasing the Company's production capacity.
Non-Retail contributed with R$97.2 million to Net Revenue, reaching 54.9% growth over the same period of the previous year when excluding the revenue from the non-recurring sale of Immunoglobulin recorded mainly in 2Q22.
Net Revenue growth contributed to Hypera Pharma's: (i) highest ever recorded EBITDA from Continuing Operations of R$790.7 million; and (ii) operating cash generation of R$578.1 million, the highest level ever recorded by the Company in a second quarter.
Hypera Pharma also approved Interest on Equity of R$194.8 million, or R$0.31/share, and published its 2022 Integrated Annual Report, which presents its main highlights and initiatives in the environmental, social and economic areas.
The 2022 Integrated Annual Report, aligned with the UN Sustainable Development Goals (SDGs) and assured by an independent third party, followed the Integrated Reporting Council (IIRC) framework and GRI guidelines, and considered the global frameworks of the Sustainability Accounting Standards Board (SASB) and the Task Force on Climate-Related Financial Disclosures (TCFD).
In 2Q23, the new composition of the Board of Directors proposed by the Company was approved at the general shareholders' meeting, and now has among its independent members Eliana Chimenti, partner at Machado, Meyer, Sendacz e Opice Advogados and member of the Market Arbitration Chamber, and Mauro Cunha, former president of the Brazilian Institute of Corporate Governance - IBGC and of the Association of Capital Market Investors - Amec and with participation in important boards of directors in Brazil for more than 20 years.
The arrival of Eliana Chimenti and Mauro Cunha is in line with Hypera Pharma's strategy of constantly looking for the evolution of the Board of Directors' governance, without losing sight of the complementary profiles and skills of its members.
Also in this quarter, the Company was once again certified by Great Place to Work as an excellent place to work in Brazil, and had a notable participation in the 20th edition of IstoÉ Dinheiro's ranking The Most Valuable Brands in Brazil. The ranking was prepared by TM20 Branding and Design Bridge and Partners based on 17,000 interviews and financial data provided by TradeMap, and included 20 consumer goods brands among the 50 most valuable, being 6 of which from Hypera Pharma (Neo Química, Coristina D, Benegrip, Engov, Doril and Neosaldina).
The performance presented in the first semester of the year, the strength and resilience of the Company's portfolio of leading brands and the contribution of recent launches reinforce Hypera Pharma's confidence in achieving the financial targets and projections set for 2023.
Note: (1) Power Brands are brands with +R$100 million sell-out; (2) Sell-out PPP (Pharmacy Purchase Price), as informed by IQVIA, considers the average purchase price by pharmacies and chains; (3) As informed by IQVIA, excludes the infant formula segment
2
Innovation & Launches
Graph 1
R&D Investments (R$ million)
152.2
122.8
74.7 72.6
57.1
Total R&D investments, including the amount capitalized as intangible assets, totaled R$152.2 million in 2Q23, evidencing the Company's commitment to the constant innovation of its portfolio of products and additional investments in R&D to develop the innovation pipeline to support the growth in Non- Retail.
The Freshness Index², corresponding to the percentage of Net Revenue from products launched in the last five years, was 23% in the 2Q23, compared to 24% in 2Q22.
In 2Q23, the Company launched several new products in all its business units.
In Prescription Products, the main highlights were the line extensions Bifilac Lipid, a supplement with probiotics that contributes to cholesterol reduction, and Bifilac Mind, a supplement that in addition to contributing to the balance of intestinal flora, also helps to reduce the feeling of stress and anxiety.
2Q19 | 2Q20 | 2Q21 | 2Q22 | 2Q23 |
Dual Fit and Maracugina Kids.
In Consumer Health, the main highlights were Coristina D Congest, a decongestant and antiallergic for the treatment of common symptoms of flu, colds, rhinitis and sinusitis, Tamarine
In Skincare, the highlights were the line extensions of the Pielus brand, and in Similars and Generics, the antiepileptic Levetiracetam. In Non-Retail, the main highlight was the launch of the antibiotic Ceftriaxone.
Note: (1) Considers the R&D expenses and the amount capitalized as intangible assets. Excludes the effect of the Lei do Bem and the R&D amortization; (2) Does not consider the non-recurring revenue with immunoglobulin.
3
Earnings Discussion
Income Statement
Table 2
(R$ million) | 2Q22 | % NR | 2Q23 | % NR | Δ % | 1H22 | % NR | 1H23 | % NR | ∆ % |
Net Revenue | 1,895.6 | 100.0% | 2,231.1 | 100.0% | 17.7% | 3,389.2 | 100.0% | 3,929.3 | 100.0% | 15.9% |
Gross Profit | 1,208.0 | 63.7% | 1,409.2 | 63.2% | 16.7% | 2,147.2 | 63.4% | 2,495.3 | 63.5% | 16.2% |
Marketing Expenses | (312.2) | -16.5% | (354.2) | -15.9% | 13.5% | (545.2) | -16.1% | (622.5) | -15.8% | 14.2% |
Selling Expenses | (188.7) | -10.0% | (244.3) | -11.0% | 29.5% | (372.4) | -11.0% | (453.7) | -11.5% | 21.8% |
General and Administrative Expenses | (70.5) | -3.7% | (90.0) | -4.0% | 27.6% | (136.0) | -4.0% | (170.7) | -4.3% | 25.5% |
Other Operating Revenues (Expenses) | 9.2 | 0.5% | 18.0 | 0.8% | 95.5% | 14.8 | 0.4% | 25.2 | 0.6% | 70.0% |
Equity in Subsidiaries | (1.8) | -0.1% | (4.5) | -0.2% | 154.9% | 3.7 | 0.1% | (3.6) | -0.1% | - |
EBIT from Continuing Operations | 644.0 | 34.0% | 734.1 | 32.9% | 14.0% | 1,112.1 | 32.8% | 1,269.9 | 32.3% | 14.2% |
Net Financial Expenses | (210.4) | -11.1% | (262.3) | -11.8% | 24.7% | (384.0) | -11.3% | (528.1) | -13.4% | 37.5% |
Income Tax and CSLL | 21.9 | 1.2% | 32.5 | 1.5% | 49.0% | 76.9 | 2.3% | 101.9 | 2.6% | 32.6% |
Net Income (Loss) from Continuing Operations | 455.5 | 24.0% | 504.4 | 22.6% | 10.7% | 805.0 | 23.8% | 843.8 | 21.5% | 4.8% |
Net Income from Discontinued Operations | 0.4 | 0.0% | (0.5) | 0.0% | - | (2.2) | -0.1% | (0.6) | 0.0% | -71.0% |
Net Income (Loss) | 455.9 | 24.1% | 503.9 | 22.6% | 10.5% | 802.8 | 23.7% | 843.2 | 21.5% | 5.0% |
EBITDA from Continuing Operations | 683.3 | 36.0% | 790.7 | 35.4% | 15.7% | 1,188.9 | 35.1% | 1,378.2 | 35.1% | 15.9% |
4
Net Revenue
Graph 2 | Graph 3 | |
Gross Revenue, net of Returns and | ||
Unconditional Discounts (R$ mm) | ||
Δ 2Q23 vs 2Q22 | 18.3% | |
2,549.6 | ||
2,154.7 |
Gross Revenue, net of Returns and Unconditional Discounts (R$ mm)
Δ 1H23 vs 1H22 16.2% 4,489.8 3,864.1
2Q22 | 2Q23 |
1H22 | 1H23 |
Graph 4 | Graph 5 | |
Net Revenue (R$ mm) | ||
Δ 2Q23 vs 2Q22 | ||
17.7% | ||
1,895.6 | 2,231.1 | |
Net Revenue (R$ mm) Δ 1H23 vs 1H22 15.9%
3,929.3 3,389.2
2Q22 | 2Q23 |
1H22 | 1H23 |
Table 3
(R$ million) Gross Revenue, net of Returns and Unconditional Discounts Promotional Discounts Taxes Net Revenue
2Q22 | 2Q23 | Δ % | 1H22 | 1H23 | ∆ % |
2,154.7 | 2,549.6 | 18.3% | 3,864.1 | 4,489.8 | 16.2% |
(106.0) | (143.0) | 34.9% | (199.9) | (245.5) | 22.8% |
(153.1) | (175.6) | 14.7% | (275.0) | (315.1) | 14.6% |
1,895.6 | 2,231.1 | 17.7% | 3,389.2 | 3,929.3 | 15.9% |
Hypera Pharma's Net Revenue grew 17.7% in 2Q23 to R$2,231.1 million, driven primarily by the sell-outgrowth of the Company's main Power Brands and by the contribution of the products launched in the last 2 years.
In this quarter, Non-Retail contributed with R$97.2 million to Net Revenue, an increase of 54.9% over the same period of the previous year when excluding the revenue from the non-recurring sale of Immunoglobulin recorded mainly in 2Q22.
5
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Hypera SA published this content on 27 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 July 2023 21:32:00 UTC.
