Gland Pharma (GLAND) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 consolidated revenue grew 16% year-over-year to INR 14,070 million, driven by strong US market performance, new product launches, and Cenexi's incremental contribution.

• Base business (excluding Cenexi) revenue increased 14% YoY to INR 10,134 million, maintaining robust profitability.

• US market revenue surged 27% YoY, now contributing 54% of group revenue, supported by eight new molecule launches.

• Cenexi revenue rose 21% YoY to INR 3,883 million but posted a negative EBITDA of INR 286 million; turnaround efforts are ongoing.

Financial highlights

• Consolidated EBITDA for Q1 FY25 was INR 2,664 million, down 11% YoY, with a margin of 19% (down from 25%).

• Net profit (PAT) was INR 1,438 million, a 26% decrease YoY, mainly due to Cenexi's impact; PAT margin at 10% vs 16% last year.

• Gross margin for Q1 FY25 was 60%, down from 63% last year, affected by product mix.

• R&D expenses were INR 489 million (5% of revenue); cash flow from operations at INR 4,277 million.

• CapEx investment was INR 637 million, mainly for Cenexi upgrades.

Outlook and guidance

• Cenexi is expected to achieve positive EBITDA in Q4 FY25 and for the next fiscal year, with revenue projected to exceed EUR 200 million.

• Q2 FY25 for Cenexi will be impacted by European holidays and planned maintenance shutdowns.

• Base business (ex-Cenexi) is guided to grow in the mid-teens for the full year, with EBITDA margin expected around 30-33%.

• Strategic collaborations and biologics CDMO expansion are key growth levers.