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

Executive summary

• Operates 4,444 pharmacy outlets across 650+ cities in 10 states, with 45% of stores in Tier 2 cities and beyond.

• Net addition of 37 stores in Q1 FY25, with 66 openings and 29 closures; total stores as of June 30, 2024, is 4,444.

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

• Private-label products now constitute 15.8% of total revenue, up from 7.9% a year ago.

• Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2024.

Financial highlights

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

• Consolidated operating EBITDA was INR 435 million (2.9% margin), and PAT reached INR 143.44 million, up 281.2% year-over-year.

• Pharmacy revenue grew 24% year-over-year on GMV basis and 15.3% on net basis.

• Diagnostic revenue grew to INR 242 million from INR 139 million year-over-year; segment EBITDA turned positive at INR 3.3 million.

• Operating cash flow was INR 585 million, representing 134.7% of operating EBITDA; closing cash balance at INR 1,593 million as of June 2024.

Outlook and guidance

• Maintains guidance of 20%+ top-line growth and 4Q-level margins for FY25.

• Store addition guidance for FY25 remains at 600, with some closures expected due to network optimization.

• Plans to further grow in existing clusters and develop new ones, leveraging omni-channel capabilities and expanding private label offerings.

• Focus on increasing private label contribution in both pharma and FMCG categories for higher margins.

• Private-label share expected to continue rising, with a gradual increase each quarter.