Taro Provides Results for Year Ended March 31, 2024
Taro Pharmaceutical Industries announced unaudited financial results for the year ended March 31, 2024. Net sales rose by 12.5% for the quarter and 9.8% for the year, driven mainly by new launches and GTN adjustments. Gross profit margins improved slightly, and net income for the quarter more than doubled to $15.1 million, with an EPS of $0.40. For the year, net income surged to $53.9 million, resulting in an EPS of $1.43. However, operating income declined when excluding GTN adjustments and one-time charges. R&D and SG&A expenses saw significant increases, including $14.2 million in one-time charges. The company reported strong cash flows and a robust cash position of $1.3 billion as of March 31, 2024.
- Quarterly net sales increased by $18.4 million (12.5%) to $164.9 million.
- Annual net sales rose by $56.2 million (9.8%) to $629.2 million.
- Quarterly gross profit improved to 53.0% from 51.6%.
- Annual gross profit increased to 48.5% from 46.8%.
- Quarterly net income more than doubled to $15.1 million, with an EPS of $0.40.
- Annual net income soared to $53.9 million, with an EPS of $1.43.
- Interest and other financial income increased by $7.8 million for the quarter.
- Annual interest and other financial income rose by $35.3 million.
- Cash flow from operations for the year was $124.6 million, up from $31.8 million.
- Cash and cash equivalents increased to $1.3 billion.
- Operating income declined when excluding GTN adjustments and one-time charges.
- Quarterly R&D expenses rose by $4.2 million to $20.5 million.
- Annual R&D expenses increased by $12.3 million to $64.5 million.
- Quarterly SG&A expenses included $1 million in one-time charges.
- Annual SG&A expenses included $14.2 million in one-time charges and transitional expenses.
- Tax expenses for the year increased by $16.0 million to $28.8 million.
Insights
Taro Pharmaceutical Industries Ltd. reports a solid financial year, marked by notable net sales growth of
Gross profit as a percentage of net sales improved to
The operating income was
Net income more than doubled to
Overall, Taro's financials suggest a company managing to grow in a competitive market, yet facing underlying cost pressures and operational challenges. The attention to one-time adjustments and charges is important for investors to assess the true financial health and performance trajectory.
Taro's increased R&D expenses reflect a strategic commitment to innovation, which is vital in the highly competitive pharmaceutical industry. The jump in R&D spending to
Considering the R&D intensity, it's important to monitor the pipeline's progress and the potential for new therapeutic approvals. Investors should be aware that higher R&D spending often impacts short-term profitability but can lead to substantial long-term gains if new products successfully enter the market and gain significant market share.
The increase in R&D expenditure also highlights Taro's focus on sustaining its competitive edge. With the pharmaceutical landscape rapidly evolving, maintaining a robust pipeline is essential for long-term viability and growth.
Taro's performance metrics, especially the rise in net sales and net income, provide a positive outlook for investors. The significant GTN adjustments played a important role in boosting sales, a factor that investors should consider when evaluating the sustainability of this growth.
Moreover, the company's ability to enhance its gross profit margin from
However, the notable increase in SG&A expenses, driven by one-time charges related to corporate restructuring and relocations, reflects transitional costs that can affect short-term profitability. The strategic move to relocate operations could lead to long-term operational efficiencies but also poses integration and execution risks in the near term.
Overall, the revenue growth, enhanced gross margins and improved cash flow position present a cautiously optimistic picture for shareholders, balanced with the awareness of potential cost pressures and execution risks in the backdrop.
Quarter ended March 31, 2024 Highlights ─ compared to March 31, 2023
-
Net sales of
$164.9 million $18.4 million 12.5% , principally due to new launches and gross-to-net (“GTN”) adjustments. Excluding the impact of GTN adjustments, sales growth was high single digits. -
Gross profit of
$87.4 million 53.0% of net sales) compared to$75.7 million 51.6% of net sales). -
Research and development (R&D) expenses of
$20.5 million $4.2 million -
Selling, marketing, general and administrative expenses (SG&A) of
$58.1 million $1 million $7.0 million -
Operating income was
$ 8.8 million -
Interest and other financial income of
$15.8 million $7.8 million -
Tax expense of
$11.2 million $11.0 million -
Net income attributable to Taro was
$15.1 million $6.9 million $0.40 $0.18 $16.1 million $0.43
Year ended March 31, 2024 Highlights ─ compared to March 31, 2023
-
Net sales of
$629.2 million $56.2 million 9.8% , principally due to new launches and one-time GTN adjustments. Excluding these adjustments, the sales growth was mid-single-digits. -
Gross profit of
$305.0 million 48.5% of net sales compared to46.8% ) increased$36.6 million -
R&D expenses of
$64.5 million $12.3 million -
SG&A of
$219.0 million $14.2 million California toNew York . Excluding these charges, SG&A was$204.7 million 3.2% above the prior year. -
Operating income was
$21.5 million -
Interest and other financial income of
$56.2 million $35.3 million $20.9 million -
Tax expense of
$28.8 million $12.8 million $16.0 million -
Net income attributable to Taro was
$53.9 million $25.4 million $1.43 $0.68 $66.3 million $1.77
Cash Flow and Balance Sheet Highlights
-
Cash flow provided by operations for the year ended March 31, 2024 was
$124.6 million $31.8 million $137.0 million $99.0 million -
As of March 31, 2024, cash and cash equivalents, short-term bank deposits and marketable securities (both short- and long-term) was
$1.3 billion $82.2 million
The Company cautions that the foregoing 2024 financial information is unaudited and is subject to change.
************************
About Taro
Taro Pharmaceutical Industries Ltd. is a multinational, science-based pharmaceutical company dedicated to meeting the needs of its customers through the discovery, development, manufacturing and marketing of the highest quality healthcare products. For further information on Taro Pharmaceutical Industries Ltd., please visit the Company’s website at www.taro.com.
SAFE HARBOR STATEMENT
The unaudited consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements, and, in the opinion of management, reflect all adjustments necessary to present fairly the financial condition and results of operations of the Company. The unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 20-F, as filed with the SEC.
Certain statements in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements that do not describe historical facts or that refer or relate to events or circumstances the Company “estimates,” “believes,” or “expects” to happen or similar language, and statements with respect to the Company’s financial performance, availability of financial information, and estimates of financial results and information for fiscal year 2025. Although the Company believes the expectations reflected in such forward-looking statements to be based on reasonable assumptions, it can give no assurances that its expectations will be attained. Factors that could cause actual results to differ include general domestic and international economic conditions, industry and market conditions, changes in the Company's financial position, litigation brought by any party in any court in
**Financial Tables Follow**
| TARO PHARMACEUTICAL INDUSTRIES LTD. | |||||||||||||||
| SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
| ( |
|||||||||||||||
| Quarter Ended | Twelve Months Ended | ||||||||||||||
| March 31, | March 31, | ||||||||||||||
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
| Sales, net | $ |
164,941 |
|
$ |
146,587 |
|
$ |
629,182 |
|
$ |
572,952 |
|
|||
| Cost of sales |
|
77,552 |
|
|
70,879 |
|
|
324,203 |
|
|
304,629 |
|
|||
| Impairment |
|
— |
|
|
— |
|
|
23 |
|
|
— |
|
|||
| Gross profit |
|
87,389 |
|
|
75,708 |
|
|
304,956 |
|
|
268,323 |
|
|||
| Operating Expenses: | |||||||||||||||
| Research and development |
|
20,478 |
|
|
16,306 |
|
|
64,536 |
|
|
52,243 |
|
|||
| Selling, marketing, general and administrative |
|
58,127 |
|
|
50,128 |
|
|
218,935 |
|
|
198,366 |
|
|||
| Operating income * |
|
8,784 |
|
|
9,274 |
|
|
21,485 |
|
|
17,714 |
|
|||
| Financial (income)/expense, net: | |||||||||||||||
| Interest and other financial income |
|
(15,834 |
) |
|
(8,036 |
) |
|
(56,192 |
) |
|
(20,850 |
) |
|||
| Foreign exchange expense/(income) |
|
588 |
|
|
469 |
|
|
(9 |
) |
|
2,813 |
|
|||
| Other gain, net |
|
2,198 |
|
|
1,059 |
|
|
4,981 |
|
|
2,462 |
|
|||
| Income before income taxes |
|
26,228 |
|
|
17,900 |
|
|
82,668 |
|
|
38,213 |
|
|||
| Tax expense |
|
11,150 |
|
|
10,987 |
|
|
28,801 |
|
|
12,768 |
|
|||
| Net income * | $ |
15,078 |
|
$ |
6,913 |
|
$ |
53,867 |
|
$ |
25,445 |
|
|||
| Net income/ per ordinary share: | |||||||||||||||
| Basic and Diluted * | $ |
0.40 |
|
$ |
0.18 |
|
$ |
1.43 |
|
$ |
0.68 |
|
|||
| Weighted-average number of shares used to compute net income per share: | |||||||||||||||
| Basic and Diluted |
|
37,584,891 |
|
|
37,584,891 |
|
|
37,584,891 |
|
|
37,584,891 |
|
|||
| May not foot due to rounding. | |||||||||||||||
* For the quarter ended March 31, 2024, excluding the impact from the certain one-time charges of
* For the full year ended March 31, 2024, excluding the impact from the certain one-time charges of
| TARO PHARMACEUTICAL INDUSTRIES LTD. | ||||||
| SUMMARY CONSOLIDATED BALANCE SHEETS | ||||||
| ( |
||||||
| March 31, | March 31, | |||||
2024 |
2023 |
|||||
| ASSETS | (unaudited) | (audited) | ||||
| CURRENT ASSETS: | ||||||
| Cash and cash equivalents | $ |
362,909 |
$ |
154,495 |
||
| Short-term bank deposits |
|
58,947 |
|
119,980 |
||
| Marketable securities |
|
457,495 |
|
575,814 |
||
| Accounts receivable and other: | ||||||
| Trade, net |
|
177,463 |
|
202,260 |
||
| Other receivables and prepaid expenses |
|
41,772 |
|
57,210 |
||
| Inventories |
|
204,817 |
|
226,669 |
||
| TOTAL CURRENT ASSETS |
|
1,303,403 |
|
1,336,428 |
||
| Marketable securities |
|
457,991 |
|
404,896 |
||
| Property, plant and equipment, net |
|
217,592 |
|
190,139 |
||
| Deferred income taxes |
|
83,397 |
|
103,672 |
||
| Goodwill |
|
17,231 |
|
17,231 |
||
| Other assets |
|
82,455 |
|
83,147 |
||
| TOTAL ASSETS | $ |
2,162,069 |
$ |
2,135,513 |
||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
| CURRENT LIABILITIES: | ||||||
| Trade payables | $ |
44,664 |
$ |
68,484 |
||
| Other current liabilities |
|
316,443 |
|
317,064 |
||
| TOTAL CURRENT LIABILITIES |
|
361,107 |
|
385,548 |
||
| Deferred taxes and other long-term liabilities |
|
7,956 |
|
19,106 |
||
| TOTAL LIABILITIES |
|
369,063 |
|
404,654 |
||
| Taro shareholders' equity |
|
1,793,006 |
|
1,730,859 |
||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ |
2,162,069 |
$ |
2,135,513 |
||
| TARO PHARMACEUTICAL INDUSTRIES LTD. | ||||||||
| SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| ( |
||||||||
| Twelve Months Ended March 31, | ||||||||
|
2024 |
|
|
2023 |
|
|||
| Cash flows from operating activities: | ||||||||
| Net income | $ |
53,867 |
|
$ |
25,445 |
|
||
| Adjustments required to reconcile net income (loss) to net cash used in operating activities: | ||||||||
| Depreciation and amortization |
|
31,094 |
|
|
32,127 |
|
||
| Impairment of long-lived assets |
|
23 |
|
|
— |
|
||
| Realized loss on sale of long-lived assets |
|
— |
|
|
136 |
|
||
| Change in derivative instruments, net |
|
— |
|
|
(24 |
) |
||
| Adjustments to opening balance sheet (PPA) |
|
— |
|
|
(15,292 |
) |
||
| Decrease in goodwill and intangible assets |
|
242 |
|
|
— |
|
||
| Effect of change in exchange rate on marketable securities and bank deposits |
|
(86 |
) |
|
2,291 |
|
||
| Deferred income taxes, net |
|
19,148 |
|
|
16,802 |
|
||
| Decrease in trade receivables, net |
|
24,481 |
|
|
37,482 |
|
||
| Decrease (increase) in inventories, net |
|
21,728 |
|
|
(16,922 |
) |
||
| Decrease in other receivables, income tax receivables, prepaid expenses and other |
|
15,730 |
|
|
2,240 |
|
||
| Decrease in trade, income tax, accrued expenses and other payables |
|
(33,839 |
) |
|
(60,707 |
) |
||
| (Income)/expense from amortization of marketable securities bonds, net |
|
(7,833 |
) |
|
8,172 |
|
||
| Net cash provided by operating activities |
|
124,555 |
|
|
31,750 |
|
||
| Cash flows from investing activities: | ||||||||
| Purchase of plant, property & equipment, net |
|
(53,971 |
) |
|
(17,553 |
) |
||
| Investment in other intangible assets |
|
(247 |
) |
|
(294 |
) |
||
| Proceeds from (Investment in) short-term bank deposits, net |
|
58,338 |
|
|
(72,394 |
) |
||
| Proceeds from (Investment in) marketable securities, net |
|
81,723 |
|
|
(33,315 |
) |
||
| Investment in other investments |
|
(1,500 |
) |
|
(2,000 |
) |
||
| Net cash provided by (used in) investing activities |
|
84,343 |
|
|
(125,556 |
) |
||
| Effect of exchange rate changes on cash and cash equivalents |
|
(483 |
) |
|
(2,833 |
) |
||
| Increase (decrease) in cash and cash equivalents |
|
208,415 |
|
|
(96,639 |
) |
||
| Cash and cash equivalents at beginning of period |
|
154,495 |
|
|
251,134 |
|
||
| Cash and cash equivalents at end of period | $ |
362,910 |
|
$ |
154,495 |
|
||
| Cash Paid during the year for: | ||||||||
| Income taxes | $ |
18,309 |
|
$ |
4,175 |
|
||
| Cash Received during the year for: | ||||||||
| Income taxes | $ |
12,931 |
|
$ |
14,156 |
|
||
| Non-cash investing transactions: | ||||||||
| Purchase of property, plant and equipment included in accounts payable | $ |
2,041 |
|
$ |
1,242 |
|
||
| Non-cash financing transactions: | ||||||||
| Purchase of marketable securities, net | $ |
4,602 |
|
$ |
3,038 |
|
||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240520647281/en/
William J. Coote
VP, CFO
(914) 345-9001
William.Coote@taro.com
Source: Taro Pharmaceutical Industries Ltd.
FAQ
What were Taro's net sales for the quarter ended March 31, 2024?
How did Taro's quarterly net income change compared to the previous year?
What was Taro's earnings per share for the year ended March 31, 2024?
What was the impact of one-time charges on Taro's SG&A expenses?
How much did Taro's cash and cash equivalents increase by the end of March 31, 2024?
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