Medplus Health Services Ltd. · NSE:MEDPLUS
Medplus Health Services — Q4 FY2024 Earnings Presentation
28 slides from Medplus Health Services's earnings presentation, May 28, 2024
Slide 1: Filing cover letter to stock exchanges
MedPlus Health Services Limited May 28, 2024 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 Cod
Slide 2: Fourth Qtr FY2024 Investor Presentation
FOURTH QTR FY2024 INVESTOR PRESENTATION Corporate information Performance update Financial results May 2024
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 4,400+ Stores Spread across 10 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 23K+ Employees 46K SKU’s ac
Slide 5: FY2024 Highlights
Results Update FY2024 Highlights ₹ 56,249m Revenue ₹ 12,332m Gross Margin • Increase by 23.4% vs FY23 • 21.9% gross margin • 14.3% private label (+0.6% vs FY23) Picture to be 585 Store Net Additions 20.5% yoy: Stores > 12 months change • 670 gross additions • 20.5% revenue growth vs. FY23 • 333 net
Slide 6: Q4 FY2024 Highlights (1/2)
Results Update Q4 FY2024 Highlights (1/2) ₹ 14,905m Revenue ₹ 3,366m Gross Margin • ₹ 2,375m increase over Q4FY23 • 22.6% gross margin (0.5% qoq) 19.0% yoy • ₹ 490m increase over Q3FY24. 3.4% qoq • 1.1% increase in private label over Q4FY23 174 Store Net Additions Stores > 12 months • 199 gross addi
Slide 7: Q4 FY2024 Highlights (2/2)
Results Update Q4 FY2024 Highlights (2/2) Revenue, ₹m Gross Margin Operating EBITDA EBITDA, ₹m 14,905 22.6% 22.6% 1,163 14,086 14,415 Consolidated 1,016 12,530 12,843 22.1% 3.9% 953 955 807 21.6% 3.2% 3.2% 581 2.9% 21.3% 406 466 2.3% 410 291 14,653 22.0% 1,175 13,885 14,203 21.6% 1,055 21.3% 994 985
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: Cluster Based Network Enables Profitable Omni-Channel Service
Cluster Based Network Enables Profitable Omni-Channel Service Overview Stores As On Mar-24 Strong Cluster Based Network Strong network of 4,407 stores across Metros, Tier-One, Tier-Two and beyond. 4,407 stores 2- hour delivery Ability to service 100% market – acute + chronic Online only players cann
Slide 10: Scale Allows A Large Private Label Basket: 1100+ SKUs
Scale Allows A Large Private Label Basket: 1100+ SKUs Overview Pharma Over 801products covering Chronic, Acute, OTC & Other Pharmaceutical products Non-Pharma Over 323 products covering, packaged food, baked goods, dry goods, cleaning products, cosmetics and toiletries Q4FY24 8
Slide 11: Poised for Growth
Poised for Growth Overview Key Pillars Of Growth MedPlus has an established base of operations in 10 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 • R
Slide 12: Stores Added In Last Months
Results Update 585 Stores Added In Last 12 Months As On Mar-23 As On Dec-23 As On Mar-24 Presence 3,822 4,233 4,407 We are present in stores stores stores 10 states, accounting for c.38.4% of India’s population2. The key urban centers are: Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, Nagpur, Pune
Slide 13: Stores Added In Last Quarter
Results Update 174 Stores Added In Last Quarter Q4 FY24 Openings Q4 FY24 Closures Q4 FY24 Closure Reasons 4.8 We opened 199 199 25 stores in Q4FY24. stores stores 5 There were 25 closures 10 7.3 4.1 10 Relocation Franchisee withdrawn/ Converted to Franchisee Others Average age (years) 1. Color index
Slide 14: Store Network: 41% Less Than 24 Months Old
Results Update Store Network: 41% Less Than 2 Years Old Pharmacy: Count Pharmacy: Age Structure of Stores1 Stores 3,822 3,975 4,089 4,233 4,407 18% 15% 21% Openings 4,500 30% 27% 174 Maintaining 4,000 144 114 steady store 153 265 26% openings 3,500 27% 26% 19% 22% 3,000 2,500 4,089 4,233 2,000 3,822
Slide 15: 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% 10.3% 60.5% 16.0% 15.7% 9.6% 15.3% 8.9% 9.0% 50.6% 52.5% 52.2% 49.1% 12.9% 11.7% Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q4FY23 Q
Slide 16: 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% 2.3% 2.7% 2.9% 3.6% Product mix 5.7% 5.6% 6.1% 6.3% 6.7% 10% 11% 11% 12% 12% Trend of 8.4% 7.8% 7.9% 8.1% 8.5% increasing share 10.7% 10.9% 10.9% 11.8% 23% 23% 23%
Slide 17: Omni-channel: Profitable With Negligible Acquisition Costs
Results Update Omni-channel: Profitable With Negligible Acquisition Costs Channel Revenue Channel Delivery Pincodes1 and Delivery Hubs 840 8.0% 100% Hubs 630 616 619 619 620 821 Home Delivery Omni-Channel 820 7.0% 806 Our online 80% 795 presence grows 800 6.0% 2,419 2,461 2,508 on the back of 2,273
Slide 18: Income Statement
Results Update Income Statement Snapshot of Income Statement, ₹m Q4FY24 vs. Q4FY24 vs. FY24 vs. Q4FY23 Q3FY24 Q4FY24 FY23 FY24 Q4FY23 (yoy) Q3FY24(qoq) FY23 (yoy) Revenue 12,529.8 14,414.7 14,905.0 19.0% 3.4% 45,575.8 56,248.6 23.4% Gross Margin 2,830.0 3,187.3 3,366.0 18.9% 5.6% 9,998.8 12,332.3 23
Slide 19: Income Statement: Business Segments
Results Update Income Statement: Business Segments Snapshot of Income Statement, ₹m Q3FY24 Q4FY24 FY24 Pharmacy Pharmacy Pharmacy Diagnostic Others Total Diagnostic Others Total Diagnostic Others Total Retail Retail Retail Revenue 14,203.5 196.0 15.2 14,414.7 14,652.7 232.4 20.0 14,905.0 55,430.9 74
Slide 20: Income Statement: Ind AS Adjustments
Results Update Income Statement: Ind AS Adjustments Snapshot of Income Statement: Ind AS Adjustments, ₹m Q4FY24 FY24 Reported Ind AS Impact Ind AS Adjusted Reported Ind AS Impact Ind AS Adjusted Revenue 14,905.0 - 14,905.0 56,248.6 - 56,248.6 Gross Margin 3,366.0 - 3,366.0 12,332.3 - 12,332.3 Gross
Slide 21: Operating EBITDA Deep Dive
Results Update Operating EBITDA Deep Dive Operating EBITDA Bridge: From 12+ Months Stores to Consolidated, ₹m Operating EBITDA Q4FY24 19
Slide 22: Balance Sheet
Results Update Balance Sheet Snapshot of Balance Sheet, ₹m Mar-23 Dec-23 Mar-24 Assets Non Current Assets PPE and CWIP 3,122.4 3,172.0 3,240.4 Intangible assets 489.9 509.1 515.3 Right-of-use asset 8,022.0 8,542.6 8,773.4 Others 1,525.7 1,691.7 1,843.4 Total Non Current Assets (A) 13,160.0 13,915.4
Slide 23: Capital Productivity
Results Update Capital Productivity Working Capital Cycle, days ROCE2: Operating EBIT/ Avg. Capital Employed NWC (days) 64 66 64 66 68 11.7% 49 49 Year 1 Stores 46 46 9.4% 47 8.9% 118 days inventory (on 7.7% Year 1 stores 37 38 revenue) 35 35 33 Stores Older 4.4% Than 12 months 47 days inventory 19
Slide 24: Cash Management
Results Update Cash Management Cash Management, Q4FY24, ₹m Operating Cash Flow ₹ 406m Free Cash Flow ₹ -377m 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 25: Appendix
Appendix A. Board and key management B. Glossary 23
Slide 26: A. 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 Lakshman Kandarpa Founded MedPlus and has MD at Warburg Pincus Chief Operating Officer and Chief Financial Officer Chetan Dikshit Chief Retail Offi
Slide 27: 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 28: MedPlus Health Services Limited
MEDPLUS HEALTH SERVICES LIMITED www.medplusindia.com COMPANY SECRETARY Manoj Kumar Srivastava cs@medplusindia.com INVESTOR RELATIONS Tanushree Chaurasia ir@medplusindia.com MEDIA AND PRESS ENQUIRIES marketing@medplusindia.com
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