Mega Lifesciences (MEGA) Q3 2024 earnings summary

Executive summary

• Operating revenue for 9M24 was THB 11,687mn, up 1.4% YoY, with Mega We CareTM segment growing 3.8% and MaxxcareTM declining 1.3% due to Myanmar consumer business weakness.

• Net profit for 9M24 declined 9.6% YoY to THB 1,373mn, mainly due to higher planned SG&A expenses and increased FX losses.

• Gross margin improved to 49.6% from 45.0% in 9M23, driven by better segment mix and margin improvements.

• Cash and cash equivalents increased to THB 2,909mn as of 30 September 2024, from THB 2,357mn at year-end 2023.

• Dividend payout totaled THB 1,395mn during the period.

Financial highlights

• Mega We CareTM revenue rose to THB 6,103mn (+3.8% YoY), with Southeast Asia contributing 78.6% and Indochina 61.7%.

• MaxxcareTM revenue was THB 5,348mn (-1.3% YoY); adjusting for Myanmar currency effects, revenue declined 12.1%.

• SG&A expenses rose to 28.3% of revenue (from 26.8%), expected to taper by year-end.

• Net foreign exchange loss increased to THB 939mn from THB 410mn YoY.

• Operating cash flow for 9M24 was THB 1,600mn, up from THB 1,561mn YoY.

Outlook and guidance

• Target to double consolidated net profit by 2025 compared to 2019.

• Over 150 products in the pipeline, with 60 launched between 2022-2024, expected to drive future sales.

• Expansion into Indonesia via manufacturing acquisition, with meaningful contribution expected from 2026.

• Ongoing business expansion includes new investments in subsidiaries and social enterprise initiatives.

• Growth may be uneven due to economic and political factors in developing markets.