Medplus Health Services Ltd. · NSE:MEDPLUS
Medplus Health Services — Q3 FY2023 Earnings Presentation
26 slides from Medplus Health Services's earnings presentation, Feb 4, 2023
Slide 1: Third Quarter FY2023 Investor Presentation
THIRD QUARTER FY2023 INVESTOR PRESENTATION Corporate information Performance update Financial results FEBRUARY 2023
Slide 2: 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 3: Executive Summary: Q3FY23
Executive Summary Executive Summary: Q3FY23 1 Revenue Growth 4 Stable operating performance of mature Revenue has grown by 27.5% vs Q3 FY22 stores (>12m) Operating EBITDA: ₹ 490mn Store Level EBITDA margin: 10% Store Level Operating ROCE: 60.8% 2 Accelerated store expansion Addition of 229 stores in
Slide 4: The MedPlus Story
The MedPlus Story Overview MedPlus caters to the healthcare and 2006 16 years c.860m+ household needs of Started in Hyderabad A Trusted Brand Bills Cut Since Inception the neighborhoods we operate in We are omni- 3,557 stores 7 497 channel: Digital and Stores States Cities neighborhood stores MedPlu
Slide 5: MedPlus – Leader In The Attractive Pharmacy Space
MedPlus – Leader In The Attractive Pharmacy Space Overview Fastest Growing Retail Segment Large Headroom to Grow 30% Pharmacy 25% 25% Food & Grocery 22% Jewellery 21% 20% Apparel 16% 16% 0% 20% 40% 60% 80% 100% 15% 14% Organized Retail Unorganized 10% 8% Better Unit Economics 5% Pharmacy: High reven
Slide 6: Cluster Based Network Enables Profitable Omni-Channel Service
Cluster Based Network Enables Profitable Omni-Channel Service Overview Stores As On Dec-22 Strong Cluster Based Network Strong network of 3,557 stores across Metros, Tier-One, Tier-Two and beyond. 3,557 stores 2- hour delivery Ability to service 100% market – acute + chronic Online only players cann
Slide 7: Scale Allows A Large Private Label Basket: 900+ SKUs
Scale Allows A Large Private Label Basket: 900+ SKUs Overview Pharma and Related Non-Pharma Pharma Over 645 products covering Chronic, Acute, OTC & Other Pharmaceutical products Non-Pharma Over 263 products covering, packaged food, baked goods, dry goods, cleaning products, cosmetics and toiletries
Slide 8: Poised for Growth
Poised for Growth Overview Key Pillars Of Growth MedPlus has an established base of operations in seven key 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 clust
Slide 9: Q3 FY2023 Highlights (1/2)
Results Update Q3 FY2023 Highlights (1/2) ₹ 11,903m Revenue ₹ 2,638m Gross Margin • ₹ 2,569m increase over Q3FY22 • 22.2% gross margin (1.4% yoy, 0.5% 27.5% yoy qoq) • ₹ 697m increase over Q2FY23. 6.2% qoq • 1.8% increase in private label over Q3FY22 229 Store Net Additions Stores > 12 months • 246
Slide 10: Q3 FY2023 Highlights (2/2)
Results Update Q3 FY2023 Highlights (2/2) Revenue, ₹m Gross Margin Operating EBITDA EBITDA, ₹m 11,903 22.2% 831 11,206 706 Consolidated 21.7% 688 653 9,937 3.9% 628 9,659 9,335 21.3% 21.2% 3.1% 3.1% 20.8% 2.5% 371 366 2.2% 295 283 222 11,765 21.7% 846 11,100 21.4% 745 21.3% 4.1% 724 Pharmacy 9,850 3
Slide 11: 1,080 Stores Added In Last 12 Months
Results Update 1,080 Stores Added In Last 12 Months As On Dec-21 As On Mar-22 As On Dec-22 Presence 2,477 2,748 3,557 We are present in stores stores stores key 7 states, accounting for c.38.4% of India’s population2. The key urban centers are: Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, Nagpur,
Slide 12: Stores Added In Last Quarter
Results Update 229 Stores Added In Last Quarter Q3 FY23 Openings Q3 FY23 Closures Q2 FY23 Closure Reasons 8.1 We opened 246 246 17 stores in Q3FY23. stores stores 4 There were 17 closures 5.0 7.4 10 3 Relocation Franchisee withdrawn Others Average age (years) 1. Color index for pie-chart as below: M
Slide 13: Young Store Network: 32% Less Than 12 Months Old
Results Update Young Store Network: 32% Less Than 12 Months Old Pharmacy: Count Pharmacy: Age Structure of Stores1 Stores 2,477 2,748 2,980 3,328 3,557 Openings 4,000 25% 27% 30% 33% 32% Maintaining an 3,500 229 increasing pace of 348 11% store openings 3,000 13% 232 15% 271 16% 17% 2,500 151 2,000
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% 61.0% 60.8% 10.0% 10.9% 60.0% 7.8% 10.0% 58.9% 4.2% 9.7% 9.7% 55.9% 9.5% -8.7% Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q3FY22 Q4F
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 2.5% 2.3% 2.4% 2.2% 2.4% Product mix 4.6% 4.9% 4.6% 5.0% 5.1% 8% 8% 9% 9% 10% 7.3% 8.1% 8.1% 8.9% 8.6% Trend of increasing share 11.4% 11.1% 10.5% 21% 22% 22% 22% 10.8%
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 720 8.0% 100% Hubs 377 392 391 453 583 709 Home Delivery Omni-Channel 7.0% Our online 700 693 80% presence grows 6.0% 2,014 on the back of 677 1,877 our rapid store
Slide 17: Income Statement
Results Update Income Statement Snapshot of Income Statement, ₹m Q3FY23 vs. Q3FY23 vs. 9m FY23 vs. Q3FY22 Q2FY23 Q3FY23 9m FY22 9m FY23 Q3FY22 (yoy) Q2FY23(qoq) 9m FY22 (yoy) Revenue 9,334.5 11,206.3 11,903.1 27.5% 6.2% 28,133.7 33,045.9 17.5% Gross Margin 1,938.1 2,427.6 2,638.1 36.1% 8.7% 5,910.1
Slide 18: Income Statement: Business Segments
Results Update Income Statement: Business Segments Snapshot of Income Statement, ₹m Q2FY23 Q3FY23 Pharmacy Pharmacy Diagnostic Others Total Diagnostic Others Total Retail Retail Revenue 11,099.6 57.7 49.0 11,206.2 11,764.7 96.9 41.5 11,903.1 COGs and Expenses 10,764.0 110.4 49.4 10,923.8 11,358.6 12
Slide 19: Operating EBITDA Deep Dive
Results Update Operating EBITDA Deep Dive Operating EBITDA Bridge: From 12+ Months Stores to Consolidated, ₹m Operating EBITDA Q3FY23 18
Slide 20: Balance Sheet
Results Update Balance Sheet Snapshot of Balance Sheet, ₹m Dec-21 Mar-22 Sep-22 Dec-22 Assets Non Current Assets PPE and CWIP 1,326.5 1,823.2 2,532.1 2,759.8 Intangible assets 477.2 477.0 473.6 476.7 Right-of-use asset 4,907.6 5,891.6 6,837.8 7,511.8 Others 1,399.5 1,431.6 1,602.1 1,648.5 Total Non
Slide 21: Capital Productivity
Results Update Capital Productivity Working Capital Cycle, days ROCE2: Operating EBIT/ Avg. Capital Employed NWC (days) 62 63 66 61 63 15.8% Year 1 Stores 47 48 47 47 45 109 days 10.5% inventory (on Year 1 stores 39 39 8.8% revenue) 38 36 37 6.8% Stores Older 5.5% Than 12 months 23 23 22 23 22 38 da
Slide 22: Cash Management
Results Update Cash Management Cash Management, Q3FY23, ₹m Operating Cash Flow ₹ 435m Free Cash Flow ₹ -737m PBT+ Inc. in Taxes Capex Payment Interest Interest Share Decrease D&A+ Int. Working of lease received paid Application in cash of Lease Capital liabilities Money and cash Liability1 equiv.3 +
Slide 23: Appendix
Appendix A. Board and key management B. Glossary 22
Slide 24: A. Board and Key Management
A. Board and Key Management Appendix Committed Board Experienced Management Team Gangadi Madhukar Reddy Anish Kumar Saraf Atul Gupta Dr. Bhaskar Reddy Dr. Surendranath Mantena Founded MedPlus and has MD at Warburg Pincus Investment partner at COO–Outlet Operations COO–MedPlus Mart led it since incep
Slide 25: B. 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 26: MedPlus Health Services Limited
MEDPLUS HEALTH SERVICES LIMITED www.medplusindia.com COMPANY SECRETARY Shilpi Keswani cs@medplusindia.com INVESTOR RELATIONS Prasad Reddy/ Tanushree Chaurasia ir@medplusindia.com MEDIA AND PRESS ENQUIRIES marketing@medplusindia.com
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