India's Gland Pharma posts Q2 profit drop hurt by Europe business

Gland Pharma

04/11/2024 13:34

Nov 4 (Reuters) - Indian generic injectables maker
Gland Pharma  GLAD.NS  reported a drop in second-quarter
profit on Monday, hurt by lower sales in its Europe business
and temporary production issues at its French unit Cenexi.
    The company reported consolidated net profit of 1.64
billion rupees ($19.5 million) for the quarter ended Sept.
30, a 15.7% decrease from the year-ago period.
    Revenue from operations climbed 2.4% to 14.06 billion
rupees.
    Sales from Gland Pharma's Europe business fell over 1%
for the quarter ended Sept. 30 from a year ago. 
    For further results highlights, click  urn:newsml:reuters.com:*:nFWN3MB10E
     
    KEY CONTEXT
    Gland Pharma acquired French pharmaceutical group
Cenexi, which makes sterile and injectable pharmaceutical
products, in January 2023. 
        The company said its overall revenue growth was hurt
by temporary production issues at Cenexi. The unit has
helped boost Gland's sales in Europe since its acquisition. 
    Excluding Cenexi, Gland Pharma's revenue grew 5% during
the quarter. Sales from the U.S., its biggest market,
increased 3%, and sales from its other markets of Canada,
Australia, and New Zealand rose 45%, the company said. 
    Most of India's generic drugmakers derive a significant
share of their revenue from the U.S., and the competition in
the generic drugs market has been weighing on these firms'
margins.
    Rivals Sun Pharma  SUN.NS  and Cipla  CIPL.NS  reported
second-quarter profit above estimates last week, helped by
strong demand, while Dr Reddy's  REDY.NS  will report its
results on Tuesday. 
     
    PEER COMPARISON
     
                         Estimates       Analysts'      
                          (next 12       sentiment      
                          months)                       
           RIC   PE  EV  Reve  Prof  Mean  # of  Stock  Div
                     /E  nue   it    rati  anal  to     yiel
                     BI  grow  grow  ng*   ysts  price  d
                     TD  th    th                targe  (%)
                     A   (%)   (%)               t**    
 Gland           0   1                                 
 Cipla           2   8                                 
 Dr              7   9                                 
 ries Ltd                                               
 Sun         .8  .6         1                       
 utical           1   0                                 
 Industri                                               
 es Ltd                                                 
     
     * Mean of analysts' ratings standardised to a scale of
Strong Buy, Buy, Hold, Sell, and Strong Sell
     ** Ratio of the stock's last close to analysts' mean
price target; a ratio above 1 means the stock is trading
above the PT  
     
    JULY TO SEPTEMBER STOCK PERFORMANCE
    -- All data from LSEG
    -- $1 = 84.0810 Indian rupees



   
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
JULY TO SEPTEMBER STOCK PERFORMANCE    https://tmsnrt.rs/3C8HVvy
   
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Kashish Tandon and Anuran Sadhu in Bengaluru;
Editing by Varun H K and Abinaya Vijayaraghavan)
 ((mailto:Kashish.Tandon@thomsonreuters.com; 8800437922;))