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Vistin Pharma Earnings Release 2024
3782_rns_2024-10-31_2089ccf0-0183-4cf2-b31d-177a99183888.pdf
Earnings Release
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Presentation 2024
Magnus Tolleshaug (CEO) / Alexander Karlsen (CFO) 31 October 2024
Agenda
Highlights Market overview Financial review Summary Appendix
Highlights
Third quarter 2024 results
MNOK 106 in revenue vs. MNOK 120 in Q3 2023
- Revenue decrease compared to same quarter last year driven by lower sales volume, safety stock build and lower global Metformin prices
- MNOK 316 in revenue YTD 2024 compared to MNOK 328 YTD last year
Record high EBITDA of MNOK 29 vs. MNOK 27 in Q3 2023
- EBITDA positively affected by product mix, favorable material cost prices and good cost control in quarter
- EBITDA YTD of MNOK 76.6 compared to MNOK 61 YTD 2023, an increase of 26%
Other
- All-time high production volume in the quarter reflecting good operational utilization of both production lines
- Cash dividend of NOK 1.25 per share distributed YTD 2024. Additional cash dividend of NOK 0.50 per share to be distributed in Q4
Vistin has high focus on reducing local and global emissions, and programs are in place to consume responsibly and recycle where possible
Agenda
Highlights Market overview Financial review Summary Appendix
A pure play metformin company – supporting patients worldwide in a growing market
Diabetes
One of the largest health emergencies in the 21st century
Metformin
The gold standard treatment of type 2 diabetes + =
Vistin Pharma growth opportunity A leading global producer of premium metformin
- Market demand for Metformin is expected to grow 4-6% annually
- Vistin's global market share will be approx. 10% when new capacity expansion is fully utilized
Diabetes – A global emergency
Number of people with diabetes expected to increase by 50% from 2019-2045 to 750 million people
Key diabetes facts:
Vistin Pharma produces about 10% of the world's demand of metformin and has a world-wide sales coverage
World sales map
Agenda
Highlights Market review Financial review Summary
Appendix
Long and successful growth track record
Sales volume lower than Q3'23, mainly driven by safety stock rebuild and customer order pattern
Figures in Metric Tons (MT)
Revenue lower compared to Q3'23 driven by limited sales volume and decreased global metformin prices
- Revenue of MNOK 106 in Q3'24 vs 120 in Q3'23
- Parts of production volume in Q3 used to rebuild safety stock levels after the unplanned stop in Q1
- Global Metformin prices are lower past twelve months as raw material prices have decreased from high post pandemic levels
- MNOK 316 in revenue YTD 2024 compared to MNOK 328 YTD last year
Figures in MNOK
Positive development in gross margin with stable production volumes and economies of scale in raw material purchasing
- Positive development in gross margin due to stable production and favorable economies of scale in raw material purchasing, in addition to product mix
- Vistin' s ambition for long-term gross margin is >60%
Gross margin (revenue – raw materials & freight costs)
Record high EBITDA of MNOK 28.8 vs. MNOK 27.3 in Q3 2023
- EBITDA positively affected by product mix, favorable material cost prices and good cost control in quarter
- Incentive plan expense of MNOK 3 booked in quarter (2.7 in Q3'23)
- EBITDA YTD of MNOK 76.6 compared to MNOK 61 YTD 2023, an increase of 26%
Figures in MNOK
Key figures: income statement
| (NOK 1 000) | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | FY 2023 |
|---|---|---|---|---|---|
| Total revenue and other income | |||||
| Total revenue and other income | 105 838 | 119 938 | 315 803 | 327 607 | 438 328 |
| EBITDA | |||||
| EBITDA | 28 828 | 27 251 | 76 606 | 60 938 | 85 944 |
| Depreciation & amortisation | -4 765 | -4 427 | -14 456 | -12 859 | -17 347 |
| EBIT | |||||
| EBIT | 24 063 | 22 824 | 62 150 | 48 079 | 68 597 |
| Net finance income/(expense) | -2 826 | 7 295 | - 6 530 |
-12 682 | -10 079 |
| Profit/(loss) before tax | 21 237 | 30 120 | 55 620 | 35 397 | 58 517 |
| Profit/(loss) for the period | 16 565 | 23 493 | 43 383 | 27 610 | 45 595 |
Balance sheet
Assets
| 30.09.2024 | 30.09.2023 | 31.12.2023 | |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Fixed assets | 230 286 | 216 608 | 219 984 |
| Financial Assets | 11 433 | - | - |
| Deferred tax assets | 2 401 | 20 814 | 14 638 |
| Total non-current assets | 244 120 | 237 423 | 234 622 |
| Current assets | |||
| Inventory | 72 433 | 85 088 | 80 171 |
| Trade receivables | 61 279 | 55 319 | 47 023 |
| Other receivables | 4 481 | 6 294 | 15 376 |
| Cash & cash equivalents | 5 631 | 2 416 | 26 204 |
| Total current assets | 143 824 | 149 117 | 168 774 |
| Total Assets | 387 944 | 386 540 | 403 397 |
- Deferred tax asset in relation to realized loss for Energy Trading in Q1 2020
- Inventory consisting of approx. 50/50 raw materials and finished goods
- Reduced sea transportation through the Suez canal has significantly increased freight lead times. However, no impact on production YTD, due to safety stock of critical raw materials
Balance sheet
Equity and liabilities
| 30.09.2024 | 30.09.2023 | 31.12.2023 | |
|---|---|---|---|
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Share capital | 44 345 | 44 345 | 44 345 |
| Share premium | 151 470 | 206 885 | 206 885 |
| Retained earnings | 114 924 | 49 865 | 71 540 |
| Total equity | 310 739 | 301 095 | 322 770 |
| Non-current liabilities | |||
| Other non-current liablites | 8 265 | 13 199 | 2 287 |
| Pension liabilites | 1 541 | 2 584 | 8 864 |
| Total non-current | 9 806 | 15 782 | 11 151 |
| liabilities | |||
| Current liabilities | |||
| Trade payables | 18 295 | 47 931 | 18 916 |
| Short term debt | 5 642 | 0 | - |
| Other current liabilities | 43 462 | 21 730 | 50 558 |
| Total current liabilities | 67 398 | 69 660 | 69 473 |
| Total liabilities | 77 204 | 85 443 | 80 624 |
| Total Equity and Liabilities |
387 944 | 386 540 | 403 397 |
- Strong balance sheet with an equity ratio of 80%
- The Company had no remaining interestbearing debt as of end September 2024. Change from net cash as of end 2023, are driven by dividend payout in January and June (total NOK 1.25 per share) and the acquisition of 15% of the shares in CF Pharma
- Vistin has credit facilities available if needed
Agenda
Highlights Market overview Financial review Summary Appendix
All time high EBITDA of 29 MNOK in Q3'2024 with gross margin of 68%
Metformin market expected to continue to grow by 4-6% annually
Freight prices have started to stabilize after significant increased freight rates 1H 2024
Sales prices and volume for remaining 2024 are booked
The long-term renewable energy supply agreement signed with Statkraft until 2032 provides predictable cost as we enter the winter season and secures 100% green renewable hydropower long term
Attractive growth potential to be realized when the remaining manufacturing capacity is fully available and utilized
Vistin is strategically well positioned as many European clients prefer high quality supplies, near-shore production and an attractive ESGprofile
Vistin has an ambition to pay out 50 percent of net annual profit as dividend. However, the size of the dividend will be dependent on the company's financial capability and capital requirements for future growth
After the purchase of 15% of CF Pharma in Q1, Vistin is exploring our various strategic options for further growth.
Agenda
Highlights Market overview Financial review Summary Appendix
Double capacity double care metformin strategy
Strategically positioned producer of two different metformin products: Metformin HCl and DC
- Enhance our capability to supply tailor-made products
- Improve COGS by investing in costefficient supply of raw materials, waste handling and LEAN
- Strategically well positioned as many European clients prefer high quality supplies, near-shore production and a leading ESGprofile
Attractive growth potential with new production line installed in 2022
- Decided in April '20 to invest MNOK 100 to increase the annual production capacity up to 7000MT
- Sales volume increased by ~44% from 2022 to 2023
- Vistin is experiencing a strong demand for it's Metformin
A premium producer in a competitive market
- Sales to reputable international pharmaceutical companies
- State-of-the-art, fully automated manufacturing plant in Kragerø, Norway
- Certified by all significant international regulatory bodies
Metformin market expected to continue to grow by 4-6% annually
- Diabetes is one of the largest health crises of the 21st century
- Metformin is expected to maintain its position as the Gold Standard baseline treatment for T2D in the foreseeable future
- The additional demand for metformin HCl is by industry experts forecasted to grow by approx. 27.000MT to 98.000MT by 2029
Appendix
Top 20 shareholders as of end September 2024
| NAME | SHAREHOLDING | % SHARE |
|---|---|---|
| INTERTRADE SHIPPING AS* | 12 575 000 | 28,36 % |
| HOLMEN SPESIALFOND | 4 200 379 | 9,47 % |
| PACTUM VEKST AS* | 2 991 773 | 6,75 % |
| MP PENSJON PK | 1 719 848 | 3,88 % |
| FERNCLIFF LISTED DAI AS* | 1 234 280 | 2,78 % |
| STORKLEIVEN AS | 751 000 | 1,69 % |
| AUGUST RINGVOLD AGENTUR AS | 750 315 | 1,69 % |
| LUCELLUM AS | 720 000 | 1,62 % |
| SAGA PURE ASA | 700 000 | 1,58 % |
| HENRIK MIDTTUN HAAVIE | 693 617 | 1,56 % |
| IVAR LØGES STIFTELSE | 550 000 | 1,24 % |
| SURFSIDE HOLDING AS | 527 960 | 1,19 % |
| TOM RAGNAR PRESTEGÅRD STAAVI | 526 324 | 1,19 % |
| TIGERSTADEN AS | 522 430 | 1,18 % |
| CORTEX AS | 508 989 | 1,15 % |
| SANDEN EQUITY AS | 500 000 | 1,13 % |
| DNB BANK ASA | 482 219 | 1,09 % |
| WEM INVEST AS | 415 000 | 0,94 % |
| DELTA AS | 410 000 | 0,92 % |
| GINKO AS | 400 000 | 0,90 % |
| Total 20 largest shareholders |
31 179 134 | 70,13 % |
| Other shareholders | 13 165 458 | 29,69 % |
| Total number of shareholders | 44 344 592 | 100,00 % |
*Board members of Vistin Pharma ASA
Thank you for your attention
Magnus Tolleshaug (CEO) Alexander Karlsen (CFO) 31 October 2024