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Company's Healthy Quarter Boosted by Global Sales
5 Feb
Summary
- Revenue and operating profit grew 13-14% in the December quarter.
- Global specialty segment and emerging markets powered performance.
- US generics market showed weakness with price erosion on key products.
The company achieved a healthy December quarter, announcing that revenue and operating profit both grew by 13-14% compared to the previous year. Net profit was notably higher, up by 17% over the same period. The operating profit margin also improved, reaching 30.9%, an increase of 24 basis points year-on-year.
This positive performance was largely driven by the global specialty segment, alongside strong growth in India formulations (16%), emerging markets (28%), and rest-of-the-world markets (21%). However, the company's US generics market showed some weakness, with a modest 6% year-on-year increase but a 4% sequential decline.
Factors contributing to the US market's slowdown included reduced sales for the generic version of the cancer drug Revlimid and broader price erosion across other products. The company anticipates potential improvements once compliance issues at certain manufacturing locations are resolved.
