Pharmaceutical company Wockhardt recently announced its financial results for the second quarter and first half of fiscal year 2023, ending September 30th, 2023. The results show strong revenue growth of 11% in Q2 and first half of FY2023, driven by Wockhardt’s international businesses in the UK, emerging markets, and Ireland.
Q2 FY2023 Revenue Up 11% YoY
In Q2 FY2023, Wockhardt reported total revenues of INR 762 crore, an 11% increase compared to INR 686 crore in Q2 FY2022. For the first half of FY2023, revenues were INR 1,420 crore, up 11% from INR 1,282 crore in H1 FY2022. This growth was led by robust performance across Wockhardt’s global businesses.
EBITDA More Than Doubles
Along with strong top-line growth, Wockhardt saw significant expansion in profitability in Q2 and first half of FY2023. EBITDA in Q2 was INR 81 crore, a 62% jump versus INR 50 crore in Q2 FY2022. EBITDA margins improved to 10.7% in Q2 FY2023 from 7.3% in Q2 FY2022.
In the first half of FY2023, EBITDA stood at INR 113 crore, a massive 223% increase from INR 35 crore in H1 FY2022. EBITDA margins expanded to 8.0% in H1 FY2023 from 2.7% in H1 FY2022. The jump in profitability was driven by operating leverage from higher revenues.
UK Business Growth Accelerates
Wockhardt’s largest business, the UK, saw revenues grow 12% year-over-year to INR 254 crore in Q2 FY2023. This growth accelerated from 6% growth in Q1. For the first half, UK revenues were up 19% to INR 501 crore. The UK business contributed 33% of global revenues in Q2 and 35% in H1 FY2023. Two new product launches in the UK boosted growth.
Emerging Markets Business
The emerging markets business saw the fastest growth, with Q2 revenues up 30% year-over-year to INR 152 crore. For the first half, emerging markets revenues grew 22% to INR 285 crore. This business accounted for 20% of global revenues in both Q2 and H1 FY2023. Strong volume growth across emerging markets drove the performance.
Irish Business Grows
Wockhardt’s Irish business maintained its steady growth trajectory, with revenues rising 18% year-over-year in Q2 to INR 45 crore. For the first half, Irish revenues were up 20% to INR 90 crore. The Irish business contributed 6% of global revenues in Q2 and H1 FY2023. New product filings and launches boosted Irish growth.
India Business Stable, US Impacted
The India business saw revenues of INR 140 crore in Q2, contributing 18% to global revenues. For H1, India revenues were INR 295 crore, 21% of global revenues. The US business has been impacted by the previously announced shutdown of a manufacturing plant, with Q2 revenues at INR 47 crore (6% of global) and H1 revenues at INR 95 crore (7% of global).
Wockhardt maintains a strong focus on drug discovery and R&D, which are key strategic priorities. In Q2, R&D expenses were INR 34 crore (4.4% of sales), while total R&D investments including capital expenditure were 8.8% of sales. For H1, R&D was 4.9% of sales and total R&D investments were 9.7% of sales.
Wockhardt currently has two key drug discovery programs – WCK 5222 for antibiotic-resistant infections and WCK 4873 for fungal infections. WCK 5222 is currently undergoing global clinical trials, while WCK 4873 is slated for DCGI approval and launch in 2024. The company also filed 11 new patents in Q2 FY2023, taking its total patents filed to 3,261.