Sanofi Consumer Healthcare India Limited has reported robust financial results for the first quarter, demonstrating significant growth in both revenue and profitability.

Revenue Surge

The company's revenue from operations for Q1 stood at ₹2,209.00 million, marking a substantial 28% increase from ₹1,723.00 million in the same quarter of the previous year. This impressive growth reflects the company's strong market position and successful product strategies.

Profit Boost

Net profit for the quarter rose by 109% to ₹607.00 million, compared to ₹290.00 million in Q1 of the previous year. This notable increase in profitability underscores the company's effective cost management and operational efficiency.

Financial Highlights

Operational Performance

The company's total income for Q1 reached ₹2,265.00 million, a 31% increase from ₹1,731.00 million in the corresponding quarter of the previous year. This growth was primarily driven by strong sales performance and an increase in other income.

Product Relaunch and Future Outlook

Sanofi Consumer Healthcare India successfully relaunched Combiflam Suspension during the quarter, following the relaunch of Depura Adult in the previous quarter. The company continues its efforts to bring back other recalled products to the market, which is expected to further boost its performance in the coming quarters.

Exceptional Items

The company recorded an exceptional gain of ₹66.00 million in Q1 from reversing excess demerger-related provisions made in the previous year, contributing to the overall profit growth.

Management Changes

In a separate announcement, the company's Board of Directors approved the appointment of Mr. Narahari Naidu as the Chief Financial Officer, effective August 4. Mr. Naidu brings over 14 years of diverse experience across various organizations in the healthcare, pharmaceuticals, manufacturing, and consulting sectors.

Sanofi Consumer Healthcare India's strong Q1 results demonstrate its resilience and growth potential in the competitive pharmaceutical market. The company's focus on product relaunches and strategic management appointments positions it well for continued success in the coming quarters.

Sanofi Consumer Healthcare India Limited (SCHIL) has released its financial results for the fourth quarter ended March 31, 2025, revealing a mixed performance impacted by recent product recalls.

Revenue and Profit

The company reported a revenue of ₹1,726.00 crore for Q4, marking a significant decrease from ₹2,216.00 crore in the same quarter last year. This 22% year-over-year decline can be attributed to the voluntary recall of several key products, including Allegra Suspension and Combiflam Suspension, which began in July 2024.

Despite the revenue setback, SCHIL managed to improve its profitability on a sequential basis. The company's net profit for Q4 stood at ₹500.00 crore, up from ₹443.00 crore in the previous quarter. However, this figure still represents a 20.3% decrease compared to the ₹627.00 crore reported in the same quarter of the previous year.

EBITDA and Margins

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q4 was ₹640.00 crore, down from ₹818.00 crore in the corresponding quarter of the previous year. Despite the lower EBITDA, SCHIL managed to slightly improve its EBITDA margin to 37.08% from 36.91% year-over-year, indicating some success in cost management efforts.

Key Financial Metrics

Product Recalls and Relaunch Efforts

SCHIL's performance in Q4 was significantly impacted by the voluntary recall of several key products. The company had recalled Allegra Suspension, Combiflam Suspension, Depura Adult, and Depura Kids as a precautionary measure. The recall process is substantially complete at the distributor level, with minor returns expected from retailers in the coming months.

In a positive development, SCHIL relaunched Depura Adult during the current quarter. The company stated its commitment to bringing back the remaining recalled products to the market as soon as possible, following a review and streamlining of manufacturing and quality processes at third-party manufacturers.

Financial Position

As of March 31, 2025, Sanofi Consumer Healthcare India Limited maintained a strong balance sheet with a paid-up equity share capital of ₹230.00 crore. The company's basic and diluted earnings per share for Q4 stood at ₹21.69, compared to ₹27.22 in the same quarter of the previous year.

Management Commentary

Himanshu Bakshi, Managing Director of Sanofi Consumer Healthcare India Limited, commented on the results, saying, "While our Q4 performance reflects the challenges posed by the product recalls, we are encouraged by the sequential improvement in our profitability. The successful relaunch of Depura Adult is a positive step, and we are working diligently to bring our other key products back to the market."

Future Outlook

The company faces the immediate challenge of successfully relaunching its recalled products and regaining market share. However, with the global restructuring of Sanofi's consumer healthcare division now complete, SCHIL may benefit from renewed focus and potential synergies in the coming quarters.

Investors and analysts will be closely watching the company's performance in the upcoming quarters to gauge the effectiveness of its recovery strategy and the impact of product relaunches on its financial results.