Binnopharm Group announces financial results for the full year 2023

LLC Binnopharm Group (the "Company", part of Sistema PJSFC) publishes consolidated financial results of the Company and its production facilities for the full year ended December 31, 2023 in accordance with International Financial Reporting Standards (IFRS). 

Net revenue in 2023 increased by 14 % year-on-year to RUB 32.5 billion, mainly due to increased production and sales of pharmaceuticals in the Russian retail segment and in foreign countries. Adjusted EBITDA increased by 19 % year-on-year to RUB 9.5 billion. Net debt at the end of the period amounted to RUB 12.7 bln, as raw material inventories increased to ensure uninterrupted production process due to changes in logistics chains in the new environment. Net debt / EBITDA ratio is at the target level of 1.3x.

In 2023, production facilities cumulatively increased the output of pharmaceuticals to 371 million packs.

In 2023, the Company's investments in development, including production and R&D center, amounted to RUB 4 billion, thanks to which the enterprises are expanding product lines and increasing production of antibacterials, painkillers, antipyretics, venotonics and other drugs.

The Company's sales in the Russian retail segment increased by 29 % year-on-year, which is four times higher than the market growth rate (8 %, AlphaRM). As of December 2023, the Company ranked 4th among the top 10 largest companies in this segment. The main growth drivers were sales of Neobutin®, Angiorus, Diclofenac-ACOS (gel), Omeprazole-OBL, Venarus®, Maxilac®, Lorotricin®-ALIUM.

The foundation for the Company's outstanding sales results is the development and diversification of the drug portfolio, as well as the focus on the promotion of Binnopharm Group's largest driver brands. The Company actively uses digital platforms to build cooperation with pharmacy chains, direct TV and digital advertising. In 2023, the Company was recognized with the largest Internet communications award AdIndex Awards.

Sales of the Company's products abroad grew by 11 % in packs, outpacing the market growth by more than 5 times (2 % in packs, AlphaRM). The company promotes its products in the countries where it operates through teams of medical representatives and advertising campaigns aimed at the end consumer.According to IQVIA, Binnopharm Group maintains its leadership among Russian companies that export their products to foreign countries.

Rustem Muratov, Chief Executive Officer of Binnopharm Group: "We have consistently demonstrated above-market growth, and we are confident that our products will continue to perform well and confirm consumer loyalty in all markets where we operate. The company invests heavily in modernization of production facilities and R&D, drug portfolio development and international expansion. We also continue to improve our strategy for promoting our focus products, increase R&D, and develop our personnel. Thanks to these efforts, we demonstrate a steady growth rate and high profitability of the business".