Mega Lifesciences (MEGA) Q3 2024 earnings summary

Executive summary

• Revenue for 9M24 was THB 11,687 million, up 1.4% YoY, with Mega We CareTM growing 3.8% and MaxxcareTM declining 1.3% due to Myanmar weakness.

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

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

• Cash and cash equivalents increased to THB 2,909 million as of 30 September 2024.

• Initiatives targeting zero greenhouse gas emissions and carbon footprint reduction were discussed.

Financial highlights

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

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

• Gross margin increased to 49.6% (from 45.0%), with Mega We CareTM at 66.0% and MaxxcareTM (adjusted) at 23.6%.

• 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 939 million from THB 410 million 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.

• Continued search for acquisitions in core regions and investment of THB 390 million in 2024-25 for plant upgrades and ESG initiatives.

• Management expects continued compliance with investment promotion and tax privileges, supporting future profitability.