Medplus Health Services Ltd. · NSE:MEDPLUS
Medplus Health Services — Q1 FY2023 Earnings Presentation
25 slides from Medplus Health Services's earnings presentation, Aug 10, 2022
Slide 1: First Quarter FY2023 Investor Presentation
FIRST QUARTER FY2023 INVESTOR PRESENTATION Corporate information Performance update Financial results AUGUST 2022
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: Q1FY23
Executive Summary Executive Summary: Q1FY23 1 Accelerated store expansion 4 Stable operating performance of mature stores (>12m) Gross addition of 252 stores in Q1FY23 9.5% Store Level EBITDA margin 127 net additions beyond Tier One 55.9% Store Level Operating ROCE 2 Strong unit economics 5 Diagnost
Slide 4: 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 5: The MedPlus Story
The MedPlus Story Overview MedPlus caters to the healthcare and 2006 16 years c.779m+ household needs of Started in Hyderabad A Trusted Brand Bills Cut Since Inception the neighborhoods we operate in We are omni- 2,980 stores 7 374 channel: Digital and Stores States Cities neighborhood stores MedPlu
Slide 6: Cluster Based Network Enables Profitable Omni-Channel Service
Cluster Based Network Enables Profitable Omni-Channel Service Overview Stores As On Jun-22 Strong Cluster Based Network Strong network of 2,980 stores across Metros, Tier-One, Tier-Two and beyond. 2,980 stores 2- hour delivery Ability to service 100% market – acute + chronic Online only players cann
Slide 7: Scale Allows A Large Private Label Basket: 880+ SKUs
Scale Allows A Large Private Label Basket: 880+ SKUs Overview Pharma and Related Non-Pharma Pharma Over 605 products covering Chronic, Acute, OTC & Other Pharmaceutical products Non-Pharma Over 280 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: Q1 FY2023 Highlights (1/2)
Results Update Q1 FY2023 Highlights (1/2) ₹ 9,937m Revenue ₹ 2,103m Gross Margin • ₹ 385m increase vs. Q1FY22. 4.0% • 21.2% gross margin (-1.0% yoy, -0.1% yoy qoq) • ₹ 277m increase vs. Q4FY22. 2.9% qoq • 12.7% private label (-2.0% yoy) Stores > 12 months • YoY growth impacted by Covid–19 232 Store
Slide 10: Q1 FY2023 Highlights (2/2)
Results Update Q1 FY2023 Highlights (2/2) Revenue, ₹m EBITDA and Operating EBITDA, ₹m 4.0%, Q1FY23 over Q1FY22 Pharmacy 7.5% 4.1% 4.3% 4.1% 3.0% 9,937 Operating 1,007 EBITDA Margin 9,659 9,552 704 689 688 653 628 9,335 9,247 374 366 295 222 Gross 22.1% 20.1% 20.8% 21.3% 21.2% Operating 7.4% 4.0% 3.9
Slide 11: Stores Added In Last Months
Results Update 815 Stores Added In Last 12 Months As On Jun-21 As On Mar-22 As On Jun-22 411 Presence 2,165 2,748 2,980 142 stores stores 778 stores 9 We are present in key 7 states, 362 accounting for c.38.4% of India’s population2. The key urban centers are: Bangalore, Chennai, Hyderabad, Kolkata,
Slide 12: Stores Added In Last Quarter
Results Update 232 Stores Added In Last Quarter Q1 FY23 Openings Q1 FY23 Closures Q1 FY23 Closure Reasons 3.7 We opened 252 1 252 20 stores in Q1FY23. stores stores There were 20 7 closures 6.6 4.8 12 Relocation Franchisee withdrawn Others Average age (years) 1. Color index for pie-chart as below: M
Slide 13: Young Store Network: 30% Less Than Months Old
Results Update Young Store Network: 30% Less Than 12 Months Old Pharmacy: Count Pharmacy: Age Structure of Stores1 Stores 2,165 2,326 2,477 2,748 2,980 Openings 3,500 21% 24% 25% 27% 30% Maintaining an 232 increasing pace of 3,000 271 10% 10% 11% store openings 13% 2,500 151 161 15% 84 2,000 1,500 2
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 82.8% 12.4% 28.4% 10.0% 10.3% 9.7% 9.5% 61.4% 61.0% 58.9% 55.9% 7.8% 4.2% 2.8% -8.7% 1. Growth is yoy 2. See Glossary for definition 3. Annualized by multiplying the
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 2.6% 6.1% 2.5% 2.3% 2.4% Product mix 7% 7% 8% 8% 9% 14.7% 11.9% 13.0% 12.7% Trend of 11.1% increasing share 21% 21% 21% 22% 11.4% 11.1% 10.5% 22% from Private 11.3% 10.9
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 1,000 10.0% 100% Hubs 292 352 377 392 391 Home Delivery Omni-Channel 900 864 9.0% Our online 800 8.0% 80% 1,769 presence grows 724 1,681 693 677 1,578 1,556 1,571 on
Slide 17: Income Statement
Results Update Income Statement Snapshot of Income Statement, ₹m Q1FY23 vs. Q1FY23 vs. Q1FY22 Q4FY22 Q1FY23 Q1FY22 (yoy) Q4FY22(qoq) Revenue 9,551.8 9,659.1 9,936.5 4.0% 2.9% Gross Margin 2,115.0 2,059.0 2,103.1 -0.6% 2.1% Gross Margin 22.1% 21.3% 21.2% Expenses (1,410.5) (1,763.8) (1,881.4) 33.4% 6
Slide 18: Income Statement: Business Segments
Results Update Income Statement: Business Segments Snapshot of Income Statement, ₹m Q4FY22 Q1FY23 Pharmacy Pharmacy Diagnostic Others Total Diagnostic Others Total Retail Retail Revenue 9,595.7 13.9 49.5 9,659.1 9,850.0 31.5 55.0 9,936.5 COGs and Expenses 9,199.1 89.9 74.9 9,363.9 9,557.7 83.4 73.7
Slide 19: Balance Sheet
Results Update Balance Sheet Snapshot of Balance Sheet, ₹m Mar-22 Jun-22 Assets Non Current Assets PPE and CWIP 1,823.2 2,108.1 Intangible assets 477.0 476.7 Right-of-use asset 5,891.6 6,528.5 Others 1,431.6 1,492.9 Total Non Current Assets (A) 9,623.4 10,606.2 Current Assets Inventories 9,149.8 9,5
Slide 20: Capital Productivity
Results Update Capital Productivity Working Capital Cycle, days ROCE2: Operating EBIT/ Avg. Capital Employed NWC (days) 58 59 62 63 66 36.0% Year 1 Stores 47 48 45 43 115 days 41 inventory (on Year 1 stores 40 39 39 38 revenue) 38 16.9% 15.8% Stores Older Than 12 months 24 10.5% 22 23 23 22 39 days
Slide 21: Cash Management
Results Update Cash Management Cash Management, Q1FY23, ₹m Operating Cash Flow ₹ 202m Free Cash Flow ₹ -572m PBT+ Inc. in Taxes Capex Payment Interest Interest Decrease D&A+ Int. Working of lease received paid in cash of Lease Capital liabilities and cash Liability1 equiv.3 + Others2 1. Computed as
Slide 22: Appendix
Appendix A. Board and key management B. Glossary 21
Slide 23: 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 24: 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 25: 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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