Let me take the communication further by focusing on how we have consolidatedcapabilities to build scale and expand our scope thereby putting in place strong growthpivots for the journey of Strides . Shasun 2.0.
In my last communication to you
I had spoken at length on how we had invested in a unique force multiplier whichcontinues to position us as one of the significant value creators in the industry.
Let me take the communication further by focusing on how we have consolidatedcapabilities to build scale and expand our scope thereby putting in place strong growthpivots for the journey of Strides Shasun 2.0.
The global opportunity landscape continues to encourage optimism; and I believe thereis no better time to aspire for the next altitude. Our strategy revolves around thescarcity theme in terms of markets domains and products. For decades we have not justfocused on organic growth but actively pursued inorganic opportunities.
FY 2015-16 was a landmark year in terms of inorganic growth as we undertook nineM&A transactions. Our strategic merger with Shasun provided us the API supply chainsecurity for the formulations business; and made us a fully integrated pharmaceuticalplayer.
We re-entered Australia in a leadership position through the acquisition of ArrowPharmaceuticals. Our acquisitions of Generic Partners an R&D outfit and long-termsupply agreement with Pharmacy Alliance (one of the largest independent pharmacy banners)fast-tracks our growth trajectory in Australia. Our acquisitions in India including Solusand Solus Care portfolio from Sun Pharmaceuticals brands portfolio from Johnson &Johnson and Probiotic portfolio from Medispan have strengthened our emerging marketportfolio.
We also announced the acquisition of Universal Corporation in East Africa whichfurther strengthens our footprint in the continent; and also provides access to one of theonly two WHO approved manufacturing facility in SubSaharan Africa. During the course ofthe year we acquired OTC brands from Moberg. We believe the OTC business has now reacheda critical size; and is showing promise to become an important part of the overall growthstrategy.
YEAR UNDER REVIEW
In FY 2015-16 we achieved a 25% turnover growth to ' 31776 million (' 25468million in 2014-15). Our EBITDA grew by 43% to ' 5617 million against ' 3928million in 2014-15. Our net profit was at ' 2089 million with earnings per shareat ' 25.30 for the year.
We are making steady progress across each of our businesses; and are moving ahead ofour execution plan under version 2.0. We witnessed strong business momentum acrossdeveloped markets and institutional business but our emerging market operations saw amarginal decline.
GLOBAL PHARMACEUTICAL DIVISION
We delivered robust performance in regulated markets driven by strong growth in NorthAmerica and Australia. In North America our front-end business was facilitated by ahealthy market share for key products. Moreover new product launches garnered sustainablemarket share too. Our product filings gained momentum during FY 2015-16 with 11 ANDAproducts filings taking our cumulative filings to 52. Moreover we received five ANDAproduct approvals. Arrow Pharmaceuticals business in Australia consolidated operations andcontinued to deliver steady performance.
On the other hand emerging markets saw a challenging operating environment. Weundertook multiple corporate initiatives to elevate the scale and scope of the business;and given the innate potential of these markets our investments are expected to seeattractive growth going forward.
A volatile currency regime impacted our demand for generic products in few Africancountries. However we have undertaken prudent strategies to counter headwinds; and wewill continue to stay invested in the immense potential of African markets.
In India we have a strong product portfolio in the fast growing therapeutic segmentsalong with a well-integrated field force which helps grow our pan-India presence.
We invested in new markets of Russia CIS and South East Asia one of the fastestgrowing pharmaceuticals markets globally for building a strong branded generics platform.
Our institutional business delivered its best annual performance driven by enhancedofftake in antiretrovirals segment and higher volumes of anti-malarials. We continue towork closely with global innovator companies for voluntary licensing opportunities.Moreover with our acquisition of Kenya-based Universal Corporation Ltd. (Universal) weare poised to supply locally manufactured products to our institutional customers.
Our API division has delivered a steady performance during the year. We have integratedour R&D capabilities for API and formulations; and have a consistent filing roadmapfor formulations.
We are gradually shifting focus towards backward integration for our formulations.
During FY 2015-16 in our biotech business there was momentum in the R&D Pipeline.Moreover we commenced the construction initiatives of bio-pharmaceutical facility atDoddaballapur Bengaluru. We have also stated our intent to spin off the Biotech businessinto a separate entity.
RESEARCH & DEVELOPMENT
We continue to focus on limited competition products as well as growing our presencein domains where we are currently present including soft gel capsules hard gel capsulestopicals ointments creams and tablets. During FY 2015-16 our R&D spend increased by28% over previous year. Our R&D spend is around 7% of regulated market sales.
We strengthened the leadership team to manage the growing scale and scope of operationsacross the world. We brought on board Shashank Sinha as the Chief Executive Officer (CEO)
Jitesh Devendra President (North America and Europe) and Leon Moore as CEO Australia.We also re-designated Sinhue Noronha as CEO Emerging Markets.
An agile flexible business model such as ours needs to constantly recalibrate itsstrategies in line with evolving realities.
We will continue to focus on a fully integrated business model to deliver significantshareholder value. Overall consolidation of our capabilities across products markets anddomains will pave the way for a whole new era of growth and opportunity for StridesShasun. I welcome you all to be a part of the exciting journey.