Innature Bhd · MYX:INNATURE
Innature Bhd — Q1 2020 Earnings Presentation
16 slides from Innature Bhd's earnings presentation, May 29, 2020
Slide 1: Financial Results for the 1st Quarter ended 31 March 2020 (1Q2020)
Financial Results for the 1st Quarter ended 31 March 2020 (“1Q2020”) 29 May 2020
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: 1Q2020 Financial Highlights
1Q2020 Financial Highlights Still profitable despite Covid-19 + closure of all stores in Malaysia during MCO + gloomy economic outlook impacted performance. REVENUE GROSS PROFIT RM37.4m 21.5% y-o-y RM25.6m 22.0% y-o-y Margin: 68.6% (1Q2019: 68.9%) Online sales of RM1.8m 75.4% y-o-y CORE PROFIT AFTER
Slide 4: 1Q2020 Financial Highlights: Cash and Balance Sheet
1Q2020 Financial Highlights Group continues to be cash generative with healthy balance sheet and net cash position as at 31 March 2020 ADJUSTED NET CASH FROM OPERATIONS SHAREHOLDERS’ EQUITY RM3.0m RM129.5m WORKING CAPITAL CASH + OTHER INVESTMENTS RM45.3m RM48.3m NET GEARING RATIO Net Cash Note: (1)
Slide 5: 1Q2020 Overview: Revenue and Gross Profits
1Q2020 Overview: Revenue and Gross Profits Revenue Gross Profits 47,609 21.5% 37,387 32,821 22.0% 25,614 100% 100% 70.0% 69.0% 90% 90% 68.0% 67.0% 80% 80% % contribution % contribution 66.0% GP margin 70% 70% 65.0% 64.0% 60% 60% 63.0% 62.0% 50% 50% 61.0% 40% 60.0% 40% 1Q2019 1Q2020 1Q2019 1Q2020 Nat
Slide 6: 1Q2020 Overview: PAT Analysis
1Q2020 Overview: PAT Analysis Page 6
Slide 7: Store Network as at 31 March 2020
Store Network as at 31 March 2020 Page 7
Slide 8: Business Continuity Plan: Work-from-home arrangement
Business Continuity Plan (“BCP”) Work-from-home (“WFH”) arrangement • WFH arrangements for staff were made with IT equipment and access to systems • Communication amongst team members and agencies/business partners was facilitated via various forms of technology including e-meetings • Online availab
Slide 9: Business Continuity Plan: Pivot Marketing Initiatives for Ecommerce
Business Continuity Plan (“BCP”) Pivot Marketing Initiatives for Ecommerce during CMCO To capitalise on opportunity created by the restriction of travel and lack of choices for consumers: • Stay at Home Pamper Kits to meet new needs • Free Delivery during non-Sale periods to encourage transactions •
Slide 10: Business Continuity Plan: Post-MCO re-opening measures
Business Continuity Plan (“BCP”) Post-MCO re-opening measures • All our stores are now open except Genting and KLIA – this has been publicised via our social media platforms • Implement SOP for safety measures at HQ and Stores • Temperature screening, hand-sanitising etc • Provide personal protectiv
Slide 11: Business Continuity Plan: Premium service for personal consultation & fast delivery
Business Continuity Plan (“BCP”) Premium service for personal consultation & fast delivery • To address customer’s hesitation to visit the malls • Teleorder • Drive-thru • Click N Collect Page 11
Slide 12: Business Continuity Plan: Frugal cost and careful cash flow management
Business Continuity Plan (“BCP”) Frugal cost and careful cash flow management • Variable expenses reduced following store closure • Suspended hiring of new headcounts • Engaged landlords and suppliers for rental waiver, rebates, discounts or extension of credit terms • Pursued various applicable gov
Slide 13: Capital Investment
Capital Investment Cautious store expansion plan • The Body Shop - 5 new openings (4 in Vietnam, 1 in Cambodia) • Natura - 1 new opening (Malaysia) Continue to invest in • Enhancing and accelerating our omnichannel capabilities • Developing our Natura social selling channel - To capitalise on opport
Slide 14: Prospects
Prospects • 2Q2020 performance will continue to be significantly impacted by MCO • Consumers remain cautious beyond MCO period, social-distancing become the new normal • Our omnichannel readiness is expected to benefit e-commerce and social selling channels • Assuming that consumer sentiment to reco
Slide 15: Dividend Payment
Dividend Payment Payment of 2019 special dividend of 1 sen per share (total of RM7.0 million) on 30 April 2020 Page 15
Slide 16: Thank You
InNature Thank You