Innature Bhd · MYX:INNATURE
Innature Bhd — Q3 2022 Earnings Presentation
21 slides from Innature Bhd's earnings presentation, Nov 29, 2022
Slide 1: 3Q2022 Results
3Q2022 RESULTS 29 November 2022
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: Business Overview
BUSINESS OVERVIEW
Slide 4: Business Highlights: Continuous business normalisation post-pandemic
BUSINESS HIGHLIGHTS Continuous business normalisation post-pandemic RM35.3m Growth in 15.2% 3Q2022 revenue all Markets 9M2022 revenue contribution from +58.1% reported, Malaysia +55.2%, +56.7% constant forex, digital & remote Vietnam +112.3%, +60.2% same-store sales channels Cambodia +1.2% (was 2.6%
Slide 5: Business Highlights: A seasonally quieter 3Q ex major festivities
BUSINESS HIGHLIGHTS MCO 1.0 A seasonally quieter 3Q ex major festivities Quarterly Revenue (RM’000) 50,000 45,000 MCO 1.0 MCO 2.0 MCO 3.0 OMICRON 40,000 FMCO 35,000 30,000 25,000 20,000 15,000 10,000 5,000 - 1Q2O2O 2Q2020 3Q2020 4Q2020 1Q2021 2Q2021 3Q2021 4Q2021 1Q2022 2Q2022 3Q2022
Slide 6: Retail stores remain core, complemented by robust digital & remote channels
BUSINESS HIGHLIGHTS Retail stores remain core, complemented by robust digital & remote channels 113 124 124 118 113 108 108 Retail Store Count 2016 2017 2018 2019 2020 2021 30.9.2022 Cambodia - - - 1 2 2 2 Vietnam 20 22 26 34 37 39 38 Malaysia 88 86 87 89 85 77 73 28.6% Digital & Remote Contribution
Slide 7: Business Update: Strategic expansion of retail store network
BUSINESS UPDATE Strategic expansion of retail store network kiosk Saigon Centre, HCMC | Oct 2022 Pavilion Bukit Jalil, KL | Nov 2022 Aeon Mall 3, Phnom Penh | Dec 2022 Thiso Mall, HCMC | Dec 2022
Slide 8: Business Update: Completion of Disposal of Natura Malaysia
BUSINESS UPDATE Completion of Disposal of Natura Malaysia • a mutual decision enabling both parties to Historical Financials of Natura Malaysia focus on their core business post-pandemic. RM’000 2019 2020 2021 9M2022 • Disposed 100% equity interest in Ola Beleza to Natura Asia Pacific at RM2.2 milli
Slide 9: Financial Overview & Business Outlook
FINANCIAL OVERVIEW & BUSINESS OUTLOOK
Slide 10: 3Q2022 Financials at a Glance
3Q2022 FINANCIALS AT A GLANCE 3Q2022 Revenue 3Q2022 GP Margin Shareholders’ equity Net gearing ratio (1) RM35.3m 65.1% RM143.2m Net Cash 58% y-o-y 3Q2021: 61.7% as at 30.9.2022 as at 30.9.2022 3Q2022 PAT 3Q2022 PAT Margin 9M2022 Net operating Dividends paid during cashflow 9M2022 RM4.6m 12.9% RM34
Slide 11: Revenue by Market
REVENUE BY MARKET 3Q2022 YoY Growth 9M2022 YoY Growth Same Same 3Q2022 Constant 9M2022 Constant store Reported store Reported RM’000 forex RM’000 forex sales sales Malaysia 27,511 +55.2% +50.8% +50.8% 84,877 +30.0% +24.9% +24.9% Vietnam 6,850 +112.3% +104.7% +110.0% 21,010 +10.1% +12.0% +17.8% 9M202
Slide 12: Revenue by Channel
REVENUE BY CHANNEL Return of footfall to retail stores post-pandemic Digital & remote channels remain important revenue contributors 3Q YTD 30 September Conversational Social Conversational Social Retail Ecommerce Retail Ecommerce Commerce Selling Commerce Selling 2022 84.9% 9.9% 4.2% 1.0% 84.9% 9.7
Slide 13: 3Q2022 Profitability
3Q2022 PROFITABILITY Surge in profitability across all markets amid revenue rebound and margin improvement % change PAT by Market (RM’000) As a % As a % 3Q2022 5,000 RM'mil 3Q2022 of revenue 3Q2021 of revenue vs 3Q2021 4,000 Revenue 35.27 100.0% 22.31 100.0% 58.1% 3,000 2,000 GP 22.97 65.1% 13.75 61
Slide 14: 9M2022 Profitability
9M2022 PROFITABILITY Overall profitability doubled following business normalization post-pandemic % change PAT by Market (RM’000) As a % As a % 9M2022 16,000 RM'mil 9M2022 of revenue 9M2021 of revenue vs 9M2021 14,000 12,000 Revenue 108.58 100.0% 88.22 100.0% 23.1% 10,000 8,000 GP 71.64 66.0% 57.40
Slide 15: Solid Financial Position
SOLID FINANCIAL POSITION An asset-light, net cash balance sheet As at 30.9.2022 (RM’000)
Slide 16: Cash Generative Business
CASH GENERATIVE BUSINESS enabling flexibility in capital management and dividend policy 35,741 2020 2021 34,657 9M2022 29,528 21,883 16,629 17,647 17,647 14,081 7,059 -1,677 -2,261 -6,181 -11,222 -10,513 -15,479 (RM’000) Net cash generated from operations Capex MFRS16 leases Free Cashflow Dividends
Slide 17: Outlook
OUTLOOK ❑ Better 4Q2022 performance QoQ with year-end festivities around the corner. ❑ Store opening plan is on track. ❑ Group is on strong footing in the face of a challenging global economic outlook.
Slide 18: Thank You
THANK YOU
Slide 19: Annexes
ANNEXES
Slide 20: Balance Sheet
BALANCE SHEET RM'mil 30.9.2022 31.12.2021 % change RM'mil 30.9.2022 31.12.2021 % change Non-current assets Non-current liabilities Goodwill 50.44 50.44 0.0% Lease liabilities 7.72 9.70 -20.4% PPE & IA 10.02 11.17 -10.3% Hire puchase liabilities - 0.03 -100.0% Right-of-use assets 17.37 19.75 -12.0% O
Slide 21: Cashflow
CASHFLOW RM'mil 30.9.2022 30.9.2021 % change Operating cashflow before changes in working capital 33.21 21.32 55.8% Changes in working capital 4.50 3.78 18.9% Cash generated from operations 37.71 25.10 50.3% Income tax paid (3.05) (3.60) -15.2% Net cash generated from operating activities 34.66 21.5