MedPlus Health Services (MEDPLUS) Q1 24/25 earnings summary

Executive summary

• Operates 4,444 pharmacy outlets across 650+ cities in 10 states, with 469 net new stores added in the last 12 months and 37 net additions in Q1 FY25.

• Board approved unaudited standalone and consolidated financial results for Q1 FY25, with statutory auditors issuing an unmodified limited review report.

• Maintained leadership in 4 of the top 6 Indian cities and continued cluster-based expansion for deeper market penetration.

• Private-label products now account for 15.8% of total revenue, up from 7.9% year-over-year, reflecting a strategic focus on own brands.

• Q1 is seasonally weak due to lower demand and customer vacations, but management maintains full-year growth and margin guidance.

Financial highlights

• Consolidated revenue for Q1 FY25 was INR 14,888 million, up 15.9% year-over-year and flat sequentially.

• Pharmacy operations contributed 99% of revenue, with pharmacy GMV up 24% year-over-year and net revenue up 15.3%.

• Operating EBITDA was INR 435 million (2.9% margin), and PAT reached INR 143.4 million, up 281.2% year-over-year.

• Diagnostic revenue grew to INR 242 million from INR 139 million year-over-year, with segment EBITDA turning positive at INR 3.3 million, though segment loss was reported in statutory filings.

• Store-level EBITDA margin for stores older than 12 months was 9.3%; for stores older than 24 months, 9.7%.

Outlook and guidance

• Management reiterates guidance of 20%+ reported revenue growth and maintaining Q4-level margins for FY25.

• Store addition target for FY25 remains at 600, with a possible increase in closures due to network optimization.

• Plans to further grow in existing clusters, develop new ones, and expand private label offerings in pharma and FMCG.

• Private-label share expected to continue rising, with management targeting further growth and providing more guidance in coming quarters.

• Board scheduled the 18th Annual General Meeting for September 26, 2024, and set up e-voting procedures.