Table of Contents
  1. Financial Performance Jan-Jun-19
  2. Analysis of Variances in Half Year Profit & Loss
  3. Financial Performance 2016-2019
  4. Corporate Information & Structural Changes
  5. Pharma Sector Overview
  6. Regulatory and Pricing Environment and 
     Updates
  7. Imports from India in Recent Times
  8. Challenges & Future Outlook 
   Note: 
   Actual results may vary from any forecast / expectations / opinions which may have been 
   shared in this presentation / session.
                                                                        2
  AGP Limited – Financial Performance Jan-Jun-19
      AGP  limited  (“AGPL”)  posted  net 
        profit of PKR 743 Mn for the period of 
        Jan-Jun 2019 translating into EPS of 
        PKR 2.65                                                              10.2%           23%             22%
      Interim dividend of PKR 1.25/share 
                                                    st
        Revenue  grew  by  10.2%  in  1   half 
        2019.                                                                Revenue        Net Profit     Return on
                                                                             Growth          Margin          Equity 
      Ignoring  the  impact  of  a  one-off 
        government  order,  sales  grew  by                             Specialty Areas
        20%, of which 8.2% is volumetric                                                Gynae / Orthopedic / Antibiotic 
        increase                                                        GYNAE           Products / Pain management / 
     Revenue Growth (PKR mn)                                                            Complimenting Nutraceuticals
      The        company’s            Gross        Margin 
        6,000                                                                           Antibiotics  for children/Anti-
        improved to 58% (55% last year)                                 PAEDS           asthmatic/Nutraceuticals
        5,000 
                                                                        INTERNAL        General GP/ GNT / Broad-
        4,000                                                           MEDICINE        Spectrum Antibiotics / 
                                                                                        Antiallergens
        3,000 
                                                                        CARDIO-         Cardio, Diabetes and 
        2,000                                                           METABOLI
                                                                        C-NEURO         Neuropsychiatry products
        1,000 
                                                                        ANTI            Hepatitis treatment (Mylan 
            -                                                           VIRAL           licensed)
              2014    2015     2016    2017     2018    1H 2019 
              (12 M)  (12 M)   (12 M)  (12 M)   (12 M)  (6 M)                           Breast cancer treatment (Mylan 
                                                                        ONCOLOGY licensed)
                       Jan-Jun Sales  Jul-Dec Sales                                                                      3
  Analysis of Variances - Profit & Loss  Jan-Jun-19 (PKR in Mn)
                              Jan-Jun          Jan-Jun      Var %      Remarks
                                 2019             2018
                                                                        With an overall growth of 10.2%, the growth in Q1 was 
                                                                          4% and 19% in Q2. 
  Sales                                                      10%  Ignoring non-recurring sales (of PKLI in 2018 and similar 
                          3,159.3          2,866.3                        tender sales in 2019) the sales grew by 20%. 
                                                                        The volumetric increase stood at 8.2%. 
                                                                        Gross profit percentage improved mainly due to change 
  Gross Profit            1,836.7          1,580.8           16%          in product mix. The devaluation impact was partially 
                                                                          mitigated by the one-off price increase of 15% allowed 
  GP %                        58.1%            55.2%                      by DRAP. 
                                                          
  EBITDA                  1,084.0             943.0          15%  Despite the significant inflationary impact (8.9% on YOY 
                                                                          basis) and other increases in operating expenses (admin 
  EBITDA %                    34.3%            32.9%                      expenses due to listing, increase in marketing expenses 
                                                                          due to new teams etc.), the company posted a healthy 
  Op Profit               1,022.0             895.6          14%          increase of 15% in EBITDA and 14% in Operating profit 
                                                                          vs. 10% increase in sales.
  OP %                        32.3%            31.2%
                                                                        Devaluation leading to higher exchange loss (PKR 10Mn) 
  PBT                        914.8            801.4          14%          and increase in finance cost of Sukuk Loan by PKR17.5 
                                                                          Mn due to higher markup rate were major expense 
  PBT %                       29.0%            28.0%                      variances - the base rate for AGP borrowing increased 
                                                                          from 10.96% in Dec-18 to 13.91% in Aug-19
                                                                        The increase in PBT lead to a net tax increase of PKR 26 
  Tax                        171.7            124.9          38%          Mn (net of listing tax credit). Furthermore, prior year tax 
                                                                          expense of PKR 31 Mn was recorded during the period. 
  Effective Rate              18.8%            15.6%                      Resultantly, the effective tax rate has increased to 
                                                                          18.8%
  PAT                                                        10%
                             743.1            676.5                    •  The PAT percentage was maintained at 23.5% even in 
                                                                          this challenging macro environment.
  PAT %                       23.5%            23.6%
                                                                                                                                       4
  Financial Performance
           Amount in PKR '000                     Dec-16 (12M)             Dec-17 (12M)            Dec-18 (12M)                 Jun-19 (6M)
           Income Statement
           Revenue                                      4,205,750               4,724,990                 5,382,055                                   
           Gross Profit                                 2,460,112               2,874,392                 3,040,649               3,159,327 
           EBITDA                                       1,634,426               1,718,688                 1,724,078                                   
                                                                                                                                  1,836,699 
           Operating Profit                             1,528,879               1,610,235                 1,625,558                                   
           Profit After Tax                             1,087,081               1,233,904                 1,206,690               1,084,008 
                                                                                                                                                      
           Balance Sheet                                                                                                          1,022,028 
           Non Current Assets                           6,804,379               6,874,933                 7,095,279                                    
           Current Assets                               1,708,624               1,651,904                 1,868,111                  740,787 
           Total Assets                                 8,513,004               8,526,836                 8,963,390 
           Share Capital                                2,800,000               2,800,000                 2,800,000                                   
           Total Equity                                 4,277,031               5,510,935                 6,367,625               7,324,061 
                                                                                                                                                      
           Non Current Liabilities                      2,257,643               1,713,826                 1,251,152               2,027,352 
           Current Liabilities                          1,978,330               1,302,075                 1,344,613                9,342,278
                                                                                                                                   2,800,000 
           Ratios                                                                                                                                     
           Gross Margin                                    58.49%                  60.83%                    56.5%                7,108,413 
           EBITDA Margin                                   38.86%                  36.37%                    32.0%                                    
                                                                                                                                  1,001,943 
           Net Margin                                      25.85%                  26.11%                    22.4%                                    
           Earnings Per Share                                  3.88                    4.41                       4.31            1,241,057 
           Dividend Per Share                                      -                        -                       1.25 
           Breakup Value Per Share                           15.28                    19.68                     22.74                       58.1% 
           Current Ratio                                       0.86                    1.27                       1.39                                
           Debt Equity Ratio                                   0.79                    0.39                       0.26                 34.3% 
                                                                                                                                        23.5%
           Return on Assets                                12.90%                  14.48%                    13.8%                        2.65
           Return on Equity                                29.12%                  25.21%                    20.3%                        1.25
                                                                                                                                        25.39      5
                                                                                                                                          1.63
                                                                                                                                          0.21
                                                                                                                                        16.2%
                                                                                                                                        22.0%
  Rigix – Billion Rupee Brand
                                                                                                                                      1066 mn
                                                                                                                          927 mn
                                                                      19%
                                                                   of 
                                                              AGR 
                                                            C                                                760 mn
                                                                                                 633 mn
                                                                                    522 mn
                                                           381 mn       415 mn
                                  269 mn      301 mn
         219 mn      245 mn
          2009        2010         2011         2012        2013         2014        2015         2016        2017         20182Q-2019 (MAT Basis)
                      2010          2011          2012         2013        2014         2015         2016          2017        2018            2019
       Price Growth   0.0%          0.0%          0.0%         0.0%        5.5%        10.4%         0.0%          1.1%        3.2%          13.2%
       Units Growth   8.4%         13.6%         19.3%        19.7%        6.2%        16.4%        14.7%        21.4%        21.4%          21.3%
       Growth         8.4%         13.6%         19.3%        19.7%       11.7%        26.8%        14.7%        22.5%        24.6%          34.4%
                                                                                                   Rigix has crossed PKR 1 Bn 
   * Sales are Ex-Distributor (Local) at Trade Price (in PKR Mns)                                    brand in latest IMS report 
       Source :           IMS Q2-2019                                                                                                           6