Innature Bhd · MYX:INNATURE
Innature Bhd — 4Q2023 Earnings Presentation
27 slides from Innature Bhd's earnings presentation, Feb 29, 2024
Slide 1: 4Q2023 Results Earnings Call
4Q2023 RESULTS EARNINGS CALL 29TH FEBRUARY 2024
Slide 2: Disclaimer
DISCLAIMER This presentation contains certain forward looking statements with respect to InNature Berhad’s (“InNature”) financial condition, results of operations and business, and management’s strategy, plans and objectives for InNature. These statements include, without limitation, those that expr
Slide 3: FY2023 Performance at a Glance
FY2023 PERFORMANCE AT A GLANCE RM135.3m 68.1% RM145.5m Net Cash Revenue GP margin Net assets Net gearing ratio 9.4% reported 12.6% same store FY2022: 66.2% as at 31.12.2023 as at 31.12.2023 RM12.7m RM11.2m RM7.1m RM22.4m Final dividend for Core operating profit Core PAT Net operating cashflow FY
Slide 4: One: 4Q2023 Financial Performance
ONE 4Q2023 FINANCIAL PERFORMANCE
Slide 5: 4Q2023 Topline
4Q2023 TOPLINE 4Q2023 YoY change YoY change YoY change Revenue RM’000 same store constant currency reported Malaysia 28,351 -5.8% -11.9% -11.9% Vietnam 7,877 -7.9% -2.5% 2.5% Cambodia 902 -20.9% -13.3% -5.1% Group Total 37,130 -6.7% -10.1% -9.0% • Consumer sentiment weighed down by cost-of-living is
Slide 6: Seasonally Stronger Quarter
SEASONALLY STRONGER QUARTER Quarterly Revenue RM’000 37,130 32,425 33,747 32,023 902 955 858 923 7,877 6,839 6,185 5,127 26,607 26,038 28,351 24,663 1Q2023 2Q2023 3Q2023 4Q2023 Malaysia Vietnam Cambodia
Slide 7: Softer Core Operating Profit Impacted by Revenue & Opex
SOFTER CORE OPERATING PROFIT IMPACTED BY REVENUE & OPEX Core Operating Results 4Q2023 % of 4Q2022 % of constant currency RM’000 Revenue RM’000 Revenue Gross profit 25,091 67.2% 27,772 66.9% EBITDA 6,310 16.9% 8,881 21.4% Operating profit 4,978 13.3% 8,048 19.4% 4Q2023 Movement in Core Operating Prof
Slide 8: 4Q2023 Opex Breakdown
4Q2023 OPEX BREAKDOWN YoY YoY OPEX 4Q2023 % of 4Q2022 % of change change constant currency RM’000 Revenue RM’000 Revenue RM’000 % Rental Note 1 6,032 16.2% 5,421 13.1% 611 +11.3% Staff 9,067 24.3% 9,524 22.9% (457) -4.8% Distribution 660 1.8% 637 1.5% 23 +3.6% Marketing 1,044 2.8% 1,011 2.4% 33 +3.3
Slide 9: From Core Operating Profit to Core PAT
FROM CORE OPERATING PROFIT TO CORE PAT Core Operating Profit to Core PAT 4Q2023 % of 4Q2022 % of YoY constant currency RM’000 Revenue RM’000 Revenue change Core operating profit 4,978 13.3% 8,048 19.4% -38.1% Interest income 390 456 Forex gain 100 269 Others 110 71 Core PBT 5,578 14.9% 8,844 21.3% -
Slide 10: All Markets Remained Profitable
ALL MARKETS REMAINED PROFITABLE Core PAT 4Q2023 % of 4Q2022 % of constant currency RM’000 Revenue RM’000 Revenue Malaysia 4,475 15.8% 5,925 18.4% Vietnam 355 4.4% 702 8.5% Cambodia 44 4.7% 129 12.0% Market Total 4,874 13.1% 6,756 16.3% Corporate (113) (0.4)% (261) (0.7)% Group Total 4,761 12.7% 6,49
Slide 11: Reconciliation from Core to Reported PAT
RECONCILIATION FROM CORE TO REPORTED PAT 4Q2023 4Q2022 PAT reconciliation RM’000 RM’000 Core PAT (constant currency) 4,761 6,495 Forex effect - (78) MFRS 16 effect (155) (33) Business development expenses 16 (37) Service charges income from Natura - 270 Natura results - 7 Reported PAT 4,622 6,624
Slide 12: Two: FY2023 Financial Performance
TWO FY2023 FINANCIAL PERFORMANCE
Slide 13: Full Year Topline
FULL YEAR TOPLINE FY2023 YoY change YoY change YoY change Revenue RM’000 same store constant currency reported Malaysia 105,659 -11.1% -9.7% -9.7% Vietnam 26,028 -17.3% -11.0% -9.3% Cambodia 3,638 -19.3% -4.8% -0.1% Group Total 135,325 -12.6% -9.9% -9.4% • Subdued consumer sentiment affected by infl
Slide 14: Softer Core Operating Profit Impacted by Revenue & Opex
SOFTER CORE OPERATING PROFIT IMPACTED BY REVENUE & OPEX Core Operating Results FY2023 % of FY2022 % of constant currency RM’000 Revenue RM’000 Revenue Gross profit 92,214 68.1% 99,269 66.8% EBITDA 17,218 12.7% 30,606 20.6% Operating profit 12,745 9.4% 26,514 17.8% FY2023 Movement in Core Operating P
Slide 15: FY2023 Opex Breakdown
FY2023 OPEX BREAKDOWN YoY YoY OPEX FY2023 % of FY2022 % of change change constant currency RM’000 Revenue RM’000 Revenue RM’000 % Rental Note 1 22,447 16.6% 21,325 14.3% 1,122 +5.3% Staff 38,409 28.4% 34,950 23.5% 3,459 +9.9% Distribution 2,470 1.8% 2,363 1.6% 107 +4.5% Marketing 3,788 2.8% 3,446 2.
Slide 16: From Core Operating Profit to Core PAT
FROM CORE OPERATING PROFIT TO CORE PAT Core Operating Profit to Core PAT FY2023 % of FY2022 % of YoY constant currency RM’000 Revenue RM’000 Revenue change Core operating profit 12,745 9.4% 26,514 17.8% -51.9% Interest income 1,873 937 Forex (loss)/gain (158) 650 Fair value gain on fixed income - 19
Slide 17: Operating Deleverage Impacted All Markets
OPERATING DELEVERAGE IMPACTED ALL MARKETS Core PAT FY2023 % of FY2022 % of constant currency RM’000 Revenue RM’000 Revenue Malaysia 12,816 12.1% 20,395 17.4% Vietnam (983) (3.8)% 957 3.3% Cambodia 205 5.6% 443 11.6% Market Total 12,038 8.9% 21,795 14.7% Corporate (849) (0.6)% (736) (0.5)% Group Tota
Slide 18: Reconciliation from Core to Reported PAT
RECONCILIATION FROM CORE TO REPORTED PAT FY2023 FY2022 PAT reconciliation RM’000 RM’000 Core PAT (constant currency) 11,189 21,059 Forex effect - (77) MFRS 16 effect (259) 93 Business development expenses (856) (37) One-off gains 277 - Service charges income from Natura 153 270 Natura results - 27 R
Slide 19: Three: Financial Position & Cashflow
THREE FINANCIAL POSITION & CASHFLOW
Slide 20: Balance Sheet Remains Asset Light & Net Cash
BALANCE SHEET REMAINS ASSET LIGHT & NET CASH Components of Balance Sheet 31.12.2023 RM’000 Arose from the Group’s acquisition Mainly rent deposits, of TBS operations in prepayments and trade West Malaysia, Mainly trade dues and receivables (credit card Sabah and Labuan in accruals for operating sale
Slide 21: Cash Generative Business
CASH GENERATIVE BUSINESS Net Operating Cashflow, Dividend & Capex Paid RM’000 Lower net operating 37,690 cashflow following 35,741 revenue downtrend & 29,528 higher opex 22,376 17,647 17,647 14,118 7,059 6,181 7,181 1,677 3,444 2020 2021 2022 2023 Net operating cashflow Dividend paid Capex paid • Fl
Slide 22: Four: Next Steps
NEXT STEPS €3 THE Boy sHoP
Slide 23: 2023 Progress
2023 PROGRESS • GP margin up 2 percentage points to 68.1%. • Reoptimised retail store network, having closed 5 and opened at 5 new locations, including TRX. • Pop-up stores grew 150%, contributed 2.3% to Group topline. Converted a pop-up store in Malaysia to full-fledged store. • Ecomm in Vietnam gr
Slide 24: 2024 Priorities
2024 PRIORITIES • 40 years in business. • Ignite growth in all markets, focusing on: • Customer recruitment • Productivity improvement • Acceleration of digital channels’ contribution • 2 confirmed store openings in Vietnam.
Slide 25: Thank You
THANK YOU HE BEAUTY! wo Vv Effective. Ethical. Vegan.
Slide 26: Supplementary Information
30 SUPPLEMENTARY INFORMATION
Slide 27: Retail Store Count
RETAIL STORE COUNT Malaysia Vietnam Cambodia Group Retail stores at 1.1.2023 73 38 3 114 Opening 3 2 - 5 Conversion from pop-up to full-fledged 1 - - 1 store Closure (1) (4) - (5) Retail stores at 31.12.2023 76 36 3 115 Pop-up stores at 31.12.2023 2 4 - 6 Retail + pop-up stores at 31.12.2023 78 40 3