Medplus Health Services Ltd. · NSE:MEDPLUS
Medplus Health Services — Q1 FY2025 Earnings Presentation
27 slides from Medplus Health Services's earnings presentation, Aug 2, 2024
Slide 1: Exchange filing cover letter: earnings call presentation
MedPlus Health Services Limited August 2, 2024 The Listing Department The Listing Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, Bandra Kurla Complex, Dalal Street, Fort, Bandra (East), Mumbai – 400 051 Mumbai 400 001 Symbol: MEDPLUS Scrip C
Slide 2: First Qtr FY2025 Investor Presentation
FIRST QTR FY2025 INVESTOR PRESENTATION Corporate information Performance update Financial results Aug 2024
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by MedPlus Health Services Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for
Slide 4: The MedPlus Story
The MedPlus Story Overview Network of 4,400+ Stores Spread across 10 States, Leadership position in 4 out of top 6 cities in India Cluster based expansion strategy: ‘Continue 2nd Largest Pharma Retailer deeper penetration Vs. Wider reach’ Well curated SKU’s at Outlets and 23K+ Employees 46K SKU’s ac
Slide 5: Q1 FY2025 Highlights (1/2)
Results Update Q1 FY2025 Highlights (1/2) ₹ 14,888m Revenue ₹ 3,293m Gross Margin • ₹ 2,045m increase over Q1FY24 • 22.1% gross margin (-0.5% qoq) 15.9% yoy • ₹ 17m decrease over Q4FY24. -0.1% qoq • 2.5% increase in private label over Q1FY24 37 Store Net Additions Stores > 12 months • 66 gross addit
Slide 6: Q1 FY2025 Highlights (2/2)
Results Update Q1 FY2025 Highlights (2/2) Revenue, ₹m Gross Margin Operating EBITDA EBITDA, ₹m 14,905 14,888 22.6% 1,163 14,086 14,415 Consolidated 1,016 1,025 12,843 22.1% 22.1% 955 3.9% 807 21.6% 3.2% 581 2.9% 2.9% 21.3% 466 2.3% 410 435 291 14,653 14,629 1,175 13,885 14,203 21.6% 1,055 21.3% 985
Slide 7: Pharmacy Retail is Most Attractive Segment of Indian Retail
Pharmacy Retail is Most Attractive Segment of Indian Retail Overview High Growth Profile Amongst Various Indian Growth Rate To Continue in Foreseeable Highly Replicable Model Retail Formats Future on Back of High Unorganized Salience Given Best in Class Return Metrics Avg Revenue per Sq.ft p.a (INR
Slide 8: Cluster Based Network Enables Profitable Omni-Channel Service
Cluster Based Network Enables Profitable Omni-Channel Service Overview Stores As On Jun-24 Strong Cluster Based Network Strong network of 4,444 stores across Metros, Tier-One, Tier-Two and beyond. 4,444 stores 2- hour delivery Ability to service 100% market – acute + chronic Online only players cann
Slide 9: Scale Allows A Large Private Label Basket: 880+ SKUs
Scale Allows A Large Private Label Basket: 880+ SKUs Overview Pharma Over 542products covering Chronic, Acute, OTC & Other Pharmaceutical products Non-Pharma Over 341 products covering, packaged food, baked goods, dry goods, cleaning products, cosmetics and toiletries Q1FY25 7
Slide 10: Poised for Growth
Poised for Growth Overview Key Pillars Of Growth MedPlus has an established base of operations in 10 states. Therefore, we will: Growth in existing clusters and • Further grow in cities where we have market leadership. Metro and Tier - One followed A by Tier - Two and beyond develop new clusters • R
Slide 11: Stores Added In Last Months
Results Update 469 Stores Added In Last 12 Months As On Jun-23 As On Mar-24 As On Jun-24 Presence 3,975 4,407 4,444 We are present in stores stores stores 10 states, accounting for c.38.4% of India’s population2. The key urban centers are: Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, Nagpur, Pune
Slide 12: Stores Added In Last Quarter
Results Update 37 Stores Added In Last Quarter Q1 FY25 Openings Q1 FY25 Closures Q1 FY25 Closure Reasons 6.2 We opened 66 66 29 stores in Q1FY25. stores stores There were 29 9 closures 11 5.0 5.5 9 Relocation Franchisee withdrawn/ Converted to Franchisee Others 1. Color index for pie-chart as below
Slide 13: Store Network: 37% Less Than 2 Years Old
Results Update Store Network: 37% Less Than 2 Years Old Pharmacy: Count Pharmacy: Age Structure of Stores1 Stores 3,975 4,089 4,233 4,407 4,444 15% 13% 21% 18% Openings 4,500 174 37 27% 144 Maintaining 4,000 153 114 24% steady store 26% openings 3,500 27% 26% 22% 3,000 2,500 4,233 4,407 2,000 3,975
Slide 14: Profitable Older Stores: 12+ Months
Results Update Profitable Older Stores: 12+ Months Store Level Revenue Growth1 Store Level EBITDA Margin Store Level Operating ROCE2,3 10.3% 52.5% 52.2% 16.0% 15.7% 9.6% 9.3% 8.9% 9.0% 50.6% 12.9% 11.7% 49.1% 9.8% 46.1% Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1FY24 Q2F
Slide 15: Revenue Mix: Increasing Share Of Private Label
Results Update Revenue Mix: Increasing Share Of Private Label Revenue Mix: By Product Category Revenue Mix3: By Location of Stores 2.3% 2.7% 2.9% 3.6% 3.5% Product mix 5.6% 6.1% 6.3% 6.7% 6.7% 11% 11% 12% 12% 12% Trend of 7.8% 7.9% 8.1% 8.5% 9.1% increasing share 10.7% 10.9% 11.8% 23% 23% 23% 23% 23
Slide 16: Omni-channel: Profitable With Negligible Acquisition Costs
Results Update Omni-channel: Profitable With Negligible Acquisition Costs Channel Revenue Channel Delivery Pincodes1 and Delivery Hubs 840 8.0% 100% 829 Hubs 616 619 619 620 632 821 Home Delivery Omni-Channel 7.0% 820 Our online 806 80% 2,591 presence grows 6.0% 2,419 2,461 2,508 on the back of 800
Slide 17: Income Statement
Results Update Income Statement Snapshot of Income Statement, ₹m Q1FY25 vs. Q1FY25 vs. Q1FY24 Q4FY24 Q1FY25 Q1FY24 (yoy) Q4FY24(qoq) Revenue 12,843.0 14,905.0 14,888.3 15.9% -0.1% Gross Margin 2,734.0 3,366.0 3,292.6 20.4% -2.2% Gross Margin 21.3% 22.6% 22.1% Expenses 2,443.2 2,784.7 2,858.0 17.0% 2
Slide 18: Income Statement: Business Segments
Results Update Income Statement: Business Segments Snapshot of Income Statement, ₹m Q4FY24 Q1FY25 Pharmacy Pharmacy Diagnostic Others Total Diagnostic Others Total Retail Retail Revenue 14,652.7 232.4 20.0 14,905.0 14,629.0 242.4 16.8 14,888.2 COGs and Expenses 14,059.6 243.6 20.6 14,323.7 14,197.0
Slide 19: Income Statement: Ind AS Adjustments
Results Update Income Statement: Ind AS Adjustments Snapshot of Income Statement: Ind AS Adjustments, ₹m Q4FY24 Q1FY25 Reported Ind AS Impact Ind AS Adjusted Reported Ind AS Impact Ind AS Adjusted Revenue 14,905.0 - 14,905.0 14,888.3 - 14,888.3 Gross Margin 3,366.0 - 3,366.0 3,292.6 - 3,292.6 Gross
Slide 20: Operating EBITDA Deep Dive
Results Update Operating EBITDA Deep Dive Operating EBITDA Bridge: From 12+ Months Stores to Consolidated, ₹m Operating EBITDA Q1FY25 18
Slide 21: Balance Sheet
Results Update Balance Sheet Key Balance Sheet items, ₹m Jun-23 Mar-24 Jun-24 Assets PPE and CWIP 3,133.2 3,240.4 3,122.9 Inventories 11,861.6 13,402.3 14,480.6 Cash 2,499.2 1,701.8 1,592.5 Liabilities Trade payables 2,618.0 2,530.4 3,376.0 1. Cash includes cash, bank balances and bank deposits Q1FY
Slide 22: Capital Productivity
Results Update Capital Productivity Working Capital Cycle, days ROCE2: Operating EBIT/ Avg. Capital Employed NWC (days) 66 64 66 68 69 11.7% Year 1 Stores 49 48 49 46 46 8.9% 104 days inventory (on 7.7% Year 1 stores 40 6.9% 38 revenue) 35 37 33 Stores Older 4.4% Than 12 months 20 21 47 days invento
Slide 23: Cash Management
Results Update Cash Management Cash Management, Q1FY25, ₹m Operating Cash Flow ₹ 585m Free Cash Flow ₹ -98m PBT+ Inc. in Taxes Capex Payment Interest Decrease D&A+ Int. Working of lease received in cash of Lease Capital liabilities & others and cash Liability1 equiv.3 + Others2 1. Computed as per IN
Slide 24: Appendix
Appendix A. Board and key management B. Glossary 22
Slide 25: Board and Key Management
A. Board and Key Management Appendix Committed Board Experienced Management Team Gangadi Madhukar Reddy Anish Kumar Saraf Dr. Bhaskar Reddy Sujit Mahato Lakshman Kandarpa Founded MedPlus and has MD at Warburg Pincus Chief Operating Officer and Chief Financial Officer Chetan Dikshit Chief Retail Offi
Slide 26: Glossary
B. Glossary Appendix Term Description Metro: Bengaluru, Chennai (and Avadi), Hyderabad, Kolkata (and Howrah), Mumbai (and Thane) City Categorization Tier One: Ahmednagar, Baramati, Kharagpur, Nagpur, Nashik, Panruti, Pune, Ranaghat, Vijayawada, Visakhapatnam (internal) Tier Two: Hundred and Twenty-E
Slide 27: MedPlus Health Services Limited
MEDPLUS HEALTH SERVICES LIMITED www.medplusindia.com COMPANY SECRETARY Manoj Kumar Srivastava cs@medplusindia.com INVESTOR RELATIONS Tanushree Chaurasia ir@medplusindia.com MEDIA AND PRESS ENQUIRIES marketing@medplusindia.com
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