Healthlead Public Company Limited · SET:HL
Healthlead Public — Q2 2024 Earnings Presentation
42 slides from Healthlead Public's earnings presentation, Aug 26, 2024
Slide 1: Financial Performance Q2/2024 Opportunity Day
Financial Performance Q2/2024 OPPORTUNITY DAY 26 AUGUST 2024
Slide 2: Contents
CONTENTS Group Structure Business Overview Industry Overview Future Project Financial Highlights Q&A 2
Slide 3: Group Structure
GROUP STRUCTURE
Slide 4: Group Structure
GROUP STRUCTURE Holding Company Registered Capital : 136 million Baht Paid-up Capital : 136 million Baht 100.00% 100.00% Pharmacy Retailer Developer and Distributor of Health-related products Registered Capital : 165 million Baht Registered Capital : 35 million Baht Paid-up Capital : 165 million Bah
Slide 5: Business Overview
BUSINESS OVERVIEW
Slide 6: Business Model
BUSINESS MODEL Pharmacy retailer selling medicines, Co-operate with research medical supplies, medical equipment, institutes to develop and cosmeceutical, supplements, medical distribute innovative and health- food and all health-related products related products 6
Slide 7: Business Model: Icare Health Co., Ltd.
BUSINESS MODEL: Icare Health Co., Ltd. Our pharmacies carry products ranging over 10,000 SKUs including medicines, cosmeceutical, supplements, medical supplies and equipment and all health-related products divided into four categories: Professional Healthcare Home Healthcare Personal Healthcare Medi
Slide 8: Our Brands: Icare Health Co., Ltd.
OUR BRANDS: Icare Health Co., Ltd. Consists of four brands: iCare, Pharmax, vitaminclub and SuperDrug Community Pharmacy Professional Pharmacy Neighbourhood area Suburban residential area Discount Drug Store Lifestyle Pharmacy Near Siriraj Hospital, Thailand’s Leading shopping malls
Slide 9: Our Brands: Icare Health Co., Ltd.
OUR BRANDS: Icare Health Co., Ltd. 9
Slide 10: Current Branches: Icare Health Co., Ltd.
CURRENT BRANCHES: Icare Health Co., Ltd. 1. Thotsakan Intersection 11. La Salle 20. Tha It, Nonthaburi 2. Save Center 12. Ratchayothin 21. Thunya, Aom Yai 3. Sai 2 Market 13. Susco Ekkachai 101 22. Lat Phrao 136 4. Prachaniwet 1 14. Susco Phutta Bucha 23. Foody Farm, Bang Yai 5. Seri Market Rama 9 1
Slide 11: Current Branches: Icare Health Co., Ltd.
CURRENT BRANCHES: Icare Health Co., Ltd. 1. Pradit Manutham 11. Lotus Lat Krabang 21. PTT Borommaratchachonnani 99 2. Chamchuri Square 12. Robinson Lat Krabang 22. Paradise Park, 3rd Floor 3. Pure Place Ramkhamhaeng 110 13. Krungthep Kreetha 23. Sena Fest 4. Nuan Chan 14. Thonglor 13 24. The Mall Ba
Slide 12: Branch Location: Icare Health Co., Ltd.
BRANCH LOCATION: Icare Health Co., Ltd. Remark : Data as of 14 August 2024 12
Slide 13: Branch Location: Community Mall / Market
BRANCH LOCATION: Icare Health Co., Ltd. Community Mall / Market 34 1. Seri Market Rama 9 14. Thanya, Aom Yai 2. Senee Market, Phet Kasem 28 15. Foody Farm Bang Yai 3. Phet Kasem 56 16. Caltex Si Saman 4. Victoria Garden 17. Village Hub Pracha Uthit 90 5. Thanommit Market 18. Shell Phutta Monthon Sai
Slide 14: Branch Location: Community Mall / Market
BRANCH LOCATION: Icare Health Co., Ltd. Community Mall / Market 34 19. Pure Place, Ramkhamhaeng 110 29. Sena Fest 20. The Jas Wang Hin 30. Charn at The Avenue 21. The Nine Rama 9 Changwattana 22. Food Villa Ratchaphruek 31. Jas Green Village Prawet 23. The Crystal Ekamai – Ramindra 32. Golden Place
Slide 15: Branch Location: Stand Alone
BRANCH LOCATION: Icare Health Co., Ltd. Stand Alone 12 1. Thotsakan Intersection 2. Sai 2 Market 3. Prachaniwet 1 9. Pradit Manutham 4. The Trio 10. Nuan Chan 5. La Salle 11. Thonglor 13 6. Tha It Nonthaburi 12. Ratchapruek 7. Lat Phrao 136 8. Ramkhamkaeng 59 Remark : Data as of 14 August 2024 15
Slide 16: Branch Location: Shopping Mall / Hypermarket
BRANCH LOCATION: Icare Health Co., Ltd. Shopping Mall / Hypermarket 11 2. Chamchuri Square 3. Fashion Island 4. The Street Ratchada 5. Lotus Ladkrabang 1. Lotus Nong Chok 6. Robinson Ladkrabang 11. Central Pinklao 7. Seacon Srinakarin 8. Paradise Park, G Floor 9. Paradise Park, 3rd Floor 10. The Mal
Slide 17: New Branches and Progress
NEW BRANCHES AND PROGRESS: Icare Health Co., Ltd. Ramkhamhaeng 59 Village Hub Prcha Uthit 90 On Nut Lotus North Rathcapruek Paradise Park, G Floor Charn at The Avenue Lat Phrao 136 Paradise Park, 3rd Floor JAS Green Village Boonthavorn, Bang Na PTT Station, Borommaratchachonnani 99 Shell Phutta Mont
Slide 18: Additional Programs & Facilities
ADDITIONAL PROGRAMS & FACILITIES: Icare Health Co., Ltd. 18
Slide 19: Business Model: Healthiness Co., Ltd.
BUSINESS MODEL: Healthiness Co., Ltd. Supplement Products Sanitizing Products/Odor Eliminator /Medical Mask Personal Care / Personal Hygiene BRAND Products 19
Slide 20: Products: Healthiness Co., Ltd.
PRODUCTS: Healthiness Co., Ltd. 20
Slide 21: Rewards: Healthlead PCL.
REWARDS: HEALTHLEAD PCL. Best Innovative Company Awards : Business Excellence Company listed on mai Innovation : BESUTO12 PLUS Hand Cleansing Wash Outstanding Deal Awards : Business Excellence Capital market fund raising deal (Offering size up to 3 bn THB) (Corporate) 21
Slide 22: Rewards: Healthiness Co., Ltd.
REWARDS: Healthiness Co., Ltd. 22
Slide 23: Rewards: Healthiness Co., Ltd.
REWARDS: Healthiness Co., Ltd. 23
Slide 24: Part III Industry Overview
INDUSTRY OVERVIEW Part III Industry Overview
Slide 25: Industry Overview: Thai Healthcare Spending Growth
INDUSTRY OVERVIEW THAIS’ HEALTHCARE SPENDING GROWTH RATE 2017-2024F 10.0% 9.1% 9.2% 9.0% 8.0% 7.0% 6.4% 6.2% 6.0% 6.0% 5.3% 5.0% 5.0% 4.1% 4.0% 3.0% 2.0% CAGR 2017-2023 = +5.8% 1.0% 0.0% 2017 2018 2019 2020 2021 2022 2023 2024F Source : KASIKORN RESEARCH CENTER, Vol.30 No.3480, dated 4 April 2024 25
Slide 26: Industry Overview: Pharmacy Sales and Type
INDUSTRY OVERVIEW Thailand’s Pharmacy Sales Thailand’s Pharmacy Type 44,000 4.0% 4.5% 43,000 4.0% 3.3% 42,000 3.0% 3.5% 3.0% 41,000 72% 72% 71% 70% MN THB 2.0% 2.5% 40,000 43,000 2.0% 39,000 41,300 1.5% 38,000 40,000 1.0% 38,800 29% 30% 37,000 0.5% 28% 28% 36,000 0.0% 2021 2022 2023 2024F 2021 2022
Slide 27: Industry Overview: Outpatient Care Channels
INDUSTRY OVERVIEW Outpatient Care Channels People Used by Region Southern 6.2 23.9 16.4 14.4 23.0 3.8 12.3 Northeastern 5.3 20.7 29.8 15.2 19.0 0.8 9.1 Northern 5.4 18.3 26.4 14.6 20.2 2.4 12.7 Central 4.8 23.8 12.0 8.1 33.8 4.9 12.5 Bangkok 8.5 34.7 9.2 9.2 22.1 16.3 Nationwide 5.8 23.5 19.5 10.9 2
Slide 28: Industry Overview: Number of Drug Stores
INDUSTRY OVERVIEW Number of Drug Stores (Type : Khor Yor 1) 25,000 20,000 18,900 17,156 18,396 17,919 19,126 16,319 16,816 3,429 5,233 3,485 3,268 13,906 No. of stores 15,000 4,895 3,427 3,447 3,558 10,000 14,911 14,651 15,697 13,667 12,892 13,369 12,261 5,000 10,348 0 2017 2018 2019 2020 2021 2022
Slide 29: Industry Overview: Elderly in Thailand
INDUSTRY OVERVIEW Elderly in Thailand (>60years) Source : NATIONAL STATISTICAL OFFICE (NSO), MINISTRY OF DIGITAL ECONOMY AND SOCIETY 29
Slide 30: Part IV Future Projects
FUTURE PROJECTS Part IV Future Project
Slide 31: Future Projects: Branch Expansion and Renovation
FUTURE PROJECTS Branch Expansion and Renovation Plan to open 20 new stores in Bangkok and Metropolitan Area in 2024 HL will expand the new innovative products into Healthiness’s portfolio and expand channels of distribution for Prime and Besuto outside the Group. 31
Slide 32: Estimated Capital Expenditure per Branch
ESTIMATED CAPITAL EXPENDITURE PER BRANCH S M L (80 m2) (80-150 m2) (150-300 m2) ~ 2.00 MN THB 2.00 – 3.75 MN THB 3.75 – 6.00 MN THB Note: *CAPEX not include inventory 32
Slide 33: Business Plan 2024
BUSINESS PLAN 2024 Golden Place Nirvana Porch 2 branches under renovation Sena Fest 2 branches signed contracts / reservation agreements The Mall Bang Kae herbal personal care products 1Q24 2Q24 3Q24 4Q24 Charn at The Avenue Changwattana 7 branches signed contract / reservation agreement JAS Green V
Slide 34: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 35: Sales Breakdown by Categories
SALES BREAKDOWN BY CATEGORIES – Quarter 1/2024 Q2/2024 Q2/2023 Q1/2024 YOY QOQ Total Revenue from Sales MN THB % MN THB % MN THB % MN THB % MN THB % Revenues from Professional healthcare 322.00 69.26 271.47 68.37 332.01 68.82 50.53 18.61 -10.01 -3.02 Revenues from Home healthcare 65.66 14.12 63.70 1
Slide 36: Sales by Distribution Channels
SALES BY DISTRIBUTION CHANNELS – Quarter 1/2024 Q2/2024 Q2/2023 Q1/2024 YoY QoQ Distribution Channels MN THB % MN THB % MN THB % MN THB % MN THB % Revenue from Retail Sales 460.15 98.97 391.55 98.61 477.65 99.01 68.60 17.52 -17.50 -3.66 Revenue from Wholesales 4.79 1.03 5.50 1.39 4.76 0.99 -0.71 -12
Slide 37: Group Performance – Quarter 2/2024
GROUP PERFORMANCE – Quarter 2/2024 TOTAL REVENUES OTHER REVENUES NET PROFIT 472,087,582 THB 7,146,684 THB 11,722,276 THB 16.92% YOY 6.41% YOY 26.59% YOY GROSS MARGIN EBITDA MARGIN NET MARGIN 23.16% 7.35% 2.48% 18.96% YOY 4.08% YOY 26.59% YOY (Amount Changes) (Amount Changes) (Amount Changes) 37
Slide 38: Group Performance – Quarter 2/2024
GROUP PERFORMANCE – Quarter 2/2024 Q2/2024 Distribution Costs Others, 8.17% Maketing, DISTRIBUTION COSTS TO 4.15% REVENUE FROM SALES 17.04% Staff, 49.95% 43.17% YOY Rent D&A, (Amount Changes) 37.73% Q2/2024 Administrative Expenses Others, 21.74% ADMINISTRATIVE EXPENSES TO TOTAL REVENUES 4.39% Staff,
Slide 39: Group Performance
GROUP PERFORMANCE Liquidity Ratios Return on Asset 7.00 12.00 6.15 10.40 9.83 6.00 10.00 4.76 4.77 7.72 5.00 4.26 8.00 3.74 4.00 5.59 5.64 6.00 % X 3.00 4.00 2.00 1.00 2.00 0.00 0.00 2021 2022 2023 Q2 2023 Q2 2024 2021 2022 2023 Q2 2023 Q2 2024 Debt to Equity Ratio Return on Equity 0.60 18.00 15.83
Slide 40: Group Performance
GROUP PERFORMANCE EBIT Margin Inventory Days 12.00 80.00 68.91 9.78 70.00 63.22 63.44 10.00 8.57 56.62 58.18 60.00 8.00 50.00 6.29 5.59 40.00 6.00 Days % 3.46 30.00 4.00 20.00 2.00 10.00 0.00 0.00 2021 2022 2023 Q2 2023 Q2 2024 2021 2022 2023 Q2 2023 Q2 2024 EBITDA Margin Account Payable Days 14.00
Slide 41: Others: Same Store Sales Growth
OTHERS Same Store Sales Growth Details YE2021 YE2022 YE2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Same Store Sales Growth (SSSG) 14.9% 16.4% -2.4% -2.8% -7.1% 8.5% 17.3% 7.9% Sales / Ticket (All branches) 551 509 483 483 482 474 496 466 Tickets / Day (All branches) 5,913 8,023 9,143 8,905 9,150 10
Slide 42: Thank You
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Healthlead Public Company — Q2 2024 Earnings Presentation on 6ix