Medplus Health Services Ltd. · NSE:MEDPLUS
Medplus Health Services — Q3 FY2024 Earnings Presentation
26 slides from Medplus Health Services's earnings presentation, Feb 2, 2024
Slide 1: Cover letter to stock exchanges on earnings call presentation
MedPlus Health Services Limited February 2, 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
Slide 2: Third Qtr FY2024 Investor Presentation
THIRD QTR FY2024 INVESTOR PRESENTATION Corporate information Performance update Financial results Feb 2, 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 4,200+ 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 22K+ Employees 47K SKU’s ac
Slide 5: Q3 FY2024 Highlights (1/2)
Results Update Q3 FY2024 Highlights (1/2) ₹ 14,415m Revenue ₹ 3,187m Gross Margin • ₹ 2,512m increase over Q3FY23 • 22.1% gross margin (0.5% qoq) 21.1% yoy • ₹ 329m increase over Q2FY24. 2.3% qoq • 0.7% increase in private label over Q3FY23 144 Store Net Additions Stores > 12 months • 164 gross addi
Slide 6: Q3 FY2024 Highlights (2/2)
Results Update Q3 FY2024 Highlights (2/2) Revenue, ₹m Gross Margin Operating EBITDA EBITDA, ₹m 14,086 14,415 1,016 22.6% 953 955 12,530 12,843 Consolidated 831 807 11,903 22.2% 22.1% 21.6% 3.1% 3.2% 3.2% 2.9% 21.3% 406 466 371 2.3% 410 291 13,885 14,203 1,055 22.0% 994 985 12,382 12,690 21.7% 1000 1
Slide 7: 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 8: Cluster Based Network Enables Profitable Omni-Channel Service
Cluster Based Network Enables Profitable Omni-Channel Service Overview Stores As On Dec-23 Strong Cluster Based Network Strong network of 4,233 stores across Metros, Tier-One, Tier-Two and beyond. 4,233 stores 2- hour delivery Ability to service 100% market – acute + chronic Online only players cann
Slide 9: Scale Allows A Large Private Label Basket: 1000+ SKUs
Scale Allows A Large Private Label Basket: 1000+ SKUs Overview Pharma Over 783 products covering Chronic, Acute, OTC & Other Pharmaceutical products Non-Pharma Over 313 products covering, packaged food, baked goods, dry goods, cleaning products, cosmetics and toiletries Q3FY24 7
Slide 10: 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 11: Stores Added In Last Months
Results Update 676 Stores Added In Last 12 Months As On Dec-22 As On Mar-23 As On Dec-23 Presence 3,557 3,822 4,233 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 12: Stores Added In Last Quarter
Results Update 144 Stores Added In Last Quarter Q3 FY24 Openings Q3 FY24 Closures Q3 FY24 Closure Reasons 6.3 We opened 164 164 20 stores in Q3FY24. stores stores 4 There were 20 closures 1.9 2 14 5.8 Relocation Franchisee withdrawn Others Average age (years) 1. Color index for pie-chart as below: M
Slide 13: Young Store Network: 18% Less Than Months Old
Results Update Young Store Network: 18% Less Than 12 Months Old Pharmacy: Count Pharmacy: Age Structure of Stores1 Stores 3,557 3,822 3,975 4,089 4,233 21% 18% Openings 144 30% 27% 4,000 114 32% Maintaining an 153 265 increasing pace of 3,500 229 store openings 27% 26% 3,000 19% 22% 17% 2,500 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% 60.8% 60.5% 16.0% 10.0% 9.6% 15.3% 15.7% 9.0% 52.5% 8.9% 49.1% 50.6% 12.9% 10.9% Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q
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 2.4% 2.2% 2.3% 2.7% 2.9% Product mix 5.1% 5.7% 5.6% 6.1% 6.3% 10% 10% 11% 11% 12% Trend of 8.6% 8.4% 7.8% 7.9% 8.1% increasing share 10.7% 11.0% 10.9% 10.9% 11.8% 23% 23
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 820 6.0% 100% Hubs 583 630 618 619 619 806 Home Delivery Omni-Channel 795 800 Our online 5.9% 80% presence grows 780 2,419 2,461 on the back of 2,273 5.8% 2,158 our
Slide 17: Income Statement
Results Update Income Statement Snapshot of Income Statement, ₹m Q3FY24 vs. Q3FY24 vs. 9m FY24 vs. Q3FY23 Q2FY24 Q3FY24 9m FY23 9m FY24 Q3FY23 (yoy) Q2FY24(qoq) 9m FY23 (yoy) Revenue 11,903.1 14,085.9 14,414.7 21.1% 2.3% 33,045.9 41,343.6 25.1% Gross Margin 2,638.1 3,044.9 3,187.3 20.8% 4.7% 7,168.8
Slide 18: Income Statement: Business Segments
Results Update Income Statement: Business Segments Snapshot of Income Statement, ₹m Q2FY24 Q3FY24 Pharmacy Pharmacy Diagnostic Others Total Diagnostic Others Total Retail Retail Revenue 13,884.8 181.5 19.5 14,085.9 14,203.5 196.0 15.2 14,414.7 COGs and Expenses 13,444.6 210.6 20.5 13,675.7 13,698.6
Slide 19: Operating EBITDA Deep Dive
Results Update Operating EBITDA Deep Dive Operating EBITDA Bridge: From 12+ Months Stores to Consolidated, ₹m Operating EBITDA Q3FY24 17
Slide 20: Balance Sheet
Results Update Balance Sheet Snapshot of Balance Sheet, ₹m Dec-22 Mar-23 Sep-23 Dec-23 Assets Non Current Assets PPE and CWIP 2,759.8 3,122.4 3,153.1 3,172.0 Intangible assets 476.7 489.9 505.2 509.1 Right-of-use asset 7,511.8 8,022.0 8,427.6 8,542.6 Others 1,648.5 1,525.7 1,674.6 1,691.7 Total Non
Slide 21: Capital Productivity
Results Update Capital Productivity Working Capital Cycle, days ROCE2: Operating EBIT/ Avg. Capital Employed NWC (days) 9.4% 63 64 66 64 66 8.8% 8.9% 7.7% Year 1 Stores 49 47 46 46 47 111 days inventory (on Year 1 stores 37 37 38 4.4% revenue) 35 35 Stores Older Than 12 months 22 42 days inventory 1
Slide 22: Cash Management
Results Update Cash Management Cash Management, Q3FY24, ₹m Operating Cash Flow ₹ 412m Free Cash Flow ₹ -286m 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 23: Appendix
Appendix A. Board and key management B. Glossary 21
Slide 24: 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 25: 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 Manoj Kumar Srivastava cs@medplusindia.com INVESTOR RELATIONS Prasad Reddy/ Tanushree Chaurasia ir@medplusindia.com MEDIA AND PRESS ENQUIRIES marketing@medplusindia.com
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