Medplus Health Services Ltd. · NSE:MEDPLUS
Medplus Health Services — Q2 FY2024 Earnings Presentation
31 slides from Medplus Health Services's earnings presentation, Nov 8, 2023
Slide 1: Filing cover letter to stock exchanges
MedPlus Health Services Limited November 8, 2023 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
Slide 2: Second Qtr & H1 FY2024 Investor Presentation
SECOND QTR & H1 FY2024 INVESTOR PRESENTATION Corporate information Performance update Financial results Nov 8, 2023
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 4000+ Stores Spread across 9 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 21K+ Employees 47K+ SKU’s acr
Slide 5: Q2 FY2024 Highlights (1/2)
Results Update Q2 FY2024 Highlights (1/2) ₹ 14,086m Revenue ₹ 3,045m Gross Margin • ₹ 2,880m increase over Q2FY23 • 21.6% gross margin (0.33% qoq) 25.7% yoy • ₹ 1,243m increase over Q1FY24. 9.7% qoq • 0.1% increase in private label over Q2FY23 114 Store Net Additions Stores > 12 months • 139 gross a
Slide 6: Q2 FY2024 Highlights (2/2)
Results Update Q2 FY2024 Highlights (2/2) Revenue, ₹m Gross Margin Operating EBITDA EBITDA, ₹m 14,086 953 955 22.6% 12,530 12,843 Consolidated 11,903 831 807 22.2% 11,206 706 21.7% 21.6% 3.1% 3.2% 2.9% 21.3% 2.5% 371 406 2.3% 410 283 291 13,885 994 985 22.0% 12,382 12,690 21.7% 846 860 11,765 21.4%
Slide 7: H1 FY2024 Highlights
Results Update H1 FY2024 Highlights ₹ 26,929m Revenue ₹ 5,779m Gross Margin • ₹ 5,786m increase over H1FY23 • 21.5% gross margin 27.4% yoy • 0.34% increase in private label over H1FY23 267 Store Net Additions Stores > 12 months • 307 gross additions • 19.1% revenue growth over H1FY23 • 144 net addit
Slide 8: 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 9: Special Update: Indian Pharmacy Retail
Special Update Indian Pharmacy Retail Fragmented Retail Market Balance of power between • India's retail market, with ~900,000 organized chains and small retailers for 1.4 billion people, is independent operators fragmented compared to the US, with 46,000 retailers for 350 million. Despite even lowe
Slide 10: Special Update: MedPlus – Scale and Size allows to disrupt status-quo
Special Update MedPlus – Scale and Size allows to disrupt status-quo Net work of 4,000+ Stores Counter unorganized small • With the size of 4000+ stores, MedPlus players is uniquely positioned to offer Store • MedPlus strategically attracts customers Brands/ Store Generics by offering its Store Bran
Slide 11: Impact of MedPlus Pharma Products launch (GMV per day)
Special Update Impact of MedPlus Pharma Products launch… GMV per day, ₹m Hyderabad’s overall revenue has grown by 15% in Rest of Telangana and AP has seen significant growth September over June which is 3x higher than Bangalore compared to similar territories in KA and TN and Chennai Growth of Overa
Slide 12: Impact of MedPlus Pharma Products launch (private label share)
Special Update Impact of MedPlus Pharma Products launch… Private Label Pharma (Including MedPlus Brand products) GMV as% of Total GMV 20.0 18.4 17.9 18.0 16.0 15.3 14.2 14.5 14.1 14.0 12.0 11.6 10.0 9.6 9.6 8.7 8.6 8.7 8.7 8.7 8.7 8.3 8.0 7.8 7.7 7.6 7.3 8.0 7.2 7.0 6.9 6.9 6.3 6.6 6.0 5.1 4.0 2.0 -
Slide 13: Cluster Based Network Enables Profitable Omni-Channel Service
Cluster Based Network Enables Profitable Omni-Channel Service Overview Stores As On Sep-23 Strong Cluster Based Network Strong network of 4,089 stores across Metros, Tier-One, Tier-Two and beyond. 4,089 stores 2- hour delivery Ability to service 100% market – acute + chronic Online only players cann
Slide 14: Scale Allows A Large Private Label Basket: 1400+ SKUs
Scale Allows A Large Private Label Basket: 1400+ SKUs Overview Pharma Over 1,142 products covering Chronic, Acute, OTC & Other Pharmaceutical products Non-Pharma Over 293 products covering, packaged food, baked goods, dry goods, cleaning products, cosmetics and toiletries Q2FY24 12
Slide 15: Poised for Growth
Poised for Growth Overview Key Pillars Of Growth MedPlus has an established base of operations in nine 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 •
Slide 16: Stores Added In Last 12 Months
Results Update 761 Stores Added In Last 12 Months As On Sep-22 As On Mar-23 As On Sep-23 Presence 3,328 3,822 4,089 We are present in stores stores stores key 9 states, accounting for c.38.4% of India’s population2. The key urban centers are: Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, Nagpur, P
Slide 17: Stores Added In Last Quarter
Results Update 114 Stores Added In Last Quarter Q2 FY24 Openings Q2 FY24 Closures Q2 FY24 Closure Reasons We opened 139 139 25 stores in Q2FY24. stores stores There were 25 7 closures 5.6 7.6 14 4 5.7 Relocation Franchisee withdrawn Others Average age (years) 1. Color index for pie-chart as below: M
Slide 18: Young Store Network: 21% Less Than 12 Months Old
Results Update Young Store Network: 21% Less Than 12 Months Old Pharmacy: Count Pharmacy: Age Structure of Stores1 Stores 3,328 3,557 3,822 3,975 4,089 21% Openings 30% 27% 4,000 114 33% 32% Maintaining an 153 265 increasing pace of 3,500 229 store openings 26% 348 3,000 19% 22% 16% 17% 2,500 2,000
Slide 19: 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% 60.0% 60.8% 60.5% 16.0% 9.7% 10.0% 15.3% 15.7% 9.0% 8.9% 49.1% 50.6% 10.9% 10.0% Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q2FY23 Q
Slide 20: 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 2.2% 2.4% 2.2% 2.3% 2.7% Product mix 5.0% 5.1% 5.7% 5.6% 6.1% 9% 10% 10% 11% 11% Trend of 8.9% 8.6% 8.4% 7.8% 7.9% increasing share 10.7% 22% 10.8% 11.0% 10.9% 10.9% 23%
Slide 21: Omni-channel: Profitable With Negligible Acquisition Costs
Results Update Omni-channel: Profitable With Negligible Acquisition Costs Channel Revenue Channel Delivery Pincodes1 and Delivery Hubs 850 6.0% 100% Hubs 453 583 630 618 619 6.0% Home Delivery Omni-Channel 795 Our online 800 5.9% 80% presence grows 2,419 5.9% on the back of 749 2,273 our rapid store
Slide 22: Income Statement
Results Update Income Statement Snapshot of Income Statement, ₹m Q2FY24 vs. Q2FY24 vs. 6m FY24 vs. Q2FY23 Q1FY24 Q2FY24 6m FY23 6m FY24 Q2FY23 (yoy) Q1FY24(qoq) 6m FY23 (yoy) Revenue 11,206.3 12,843.0 14,085.9 25.7% 9.7% 21,142.8 26,928.9 27.4% Gross Margin 2,427.6 2,734.0 3,044.9 25.4% 11.4% 4,530.
Slide 23: Income Statement: Business Segments
Results Update Income Statement: Business Segments Snapshot of Income Statement, ₹m Q1FY24 Q2FY24 Pharmacy Pharmacy Diagnostic Others Total Diagnostic Others Total Retail Retail Revenue 12,689.9 139.0 14.1 12,843.0 13,884.8 181.5 19.5 14,085.9 COGs and Expenses 12,346.5 185.1 20.3 12,551.9 13,444.6
Slide 24: Operating EBITDA Deep Dive
Results Update Operating EBITDA Deep Dive Operating EBITDA Bridge: From 12+ Months Stores to Consolidated, ₹m Operating EBITDA Q2FY24 22
Slide 25: Balance Sheet
Results Update Balance Sheet Snapshot of Balance Sheet, ₹m Sep-22 Mar-23 Jun-23 Sep-23 Assets Non Current Assets PPE and CWIP 2,532.1 3,122.4 3,133.2 3,153.1 Intangible assets 473.6 489.9 497.0 505.2 Right-of-use asset 6,837.8 8,022.0 8,338.4 8,427.6 Others 1,602.1 1,525.7 1,568.6 1,674.6 Total Non
Slide 26: Capital Productivity
Results Update Capital Productivity Working Capital Cycle, days ROCE2: Operating EBIT/ Avg. Capital Employed NWC (days) 9.4% 61 63 64 66 64 8.8% 7.7% Year 1 Stores 49 47 47 46 6.8% 47 110 days inventory (on Year 1 stores revenue) 36 37 4.4% 37 35 35 Stores Older Than 12 months 23 22 41 days inventor
Slide 27: Cash Management
Results Update Cash Management Cash Management, Q2FY24, ₹m Operating Cash Flow ₹ 322m Free Cash Flow ₹ -375m 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 I
Slide 28: Appendix
Appendix A. Board and key management B. Glossary 26
Slide 29: 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 Dr. Surendranath Mantena Founded MedPlus and has MD at Warburg Pincus Chief Operating Officer and Chief Financial Officer COO–MedPlus Mart led it s
Slide 30: 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 Nine cit
Slide 31: MedPlus Health Services Limited
MEDPLUS HEALTH SERVICES LIMITED www.medplusindia.com COMPANY SECRETARY Manoj Kumar Srivastava cs@medplusindia.com INVESTOR RELATIONS Prasad Reddy/ Tanushree Chaurasia ir@medplusindia.com MEDIA AND PRESS ENQUIRIES marketing@medplusindia.com
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