Mega Lifesciences (MEGA) Q4 2023 earnings summary

Executive summary

• FY23 operating revenue was flat at THB 15,681mn, while adjusted net profit rose 1.6% to THB 2,327mn; reported net profit fell 11.0% to THB 1,993mn, mainly due to a one-time Nigerian naira-related forex loss.

• Gross margin remained stable, SG&A as a share of revenue improved, and operating cash flow was THB 1,926mn; net cash reached THB 2,636mn.

Financial highlights

• Operating revenue was THB 15,681mn in FY23 versus THB 15,686mn in FY22; gross profit increased 0.8% to THB 7,095mn.

• Reported net profit was THB 1,993mn, down 11.0% YoY; adjusted net profit was THB 2,327mn, up 1.6% YoY.

• SG&A declined 3.8% to THB 4,191mn, or 26.7% of operating revenue versus 27.8% in FY22.

• Adjusted EPS was THB 2.67 versus THB 2.63 in FY22; reported EPS was THB 2.29 versus THB 2.57.

Outlook and guidance

• The stated plan is to double FY19 net profit by 2025, following the doubling of FY14 net profit by 2019.

• A pipeline of over 150 products is planned for launch; the existing 40 Mega We Care products generate over 76% of that business’s turnover.

• Indonesian manufacturing acquisition is expected to support meaningful market contribution from 2026; the addressable pharmaceutical market is stated as over USD 10bn.

• Planned 2024–25 investment totals THB 274mn: THB 24mn for ESG at the Thailand plant and THB 250mn for Indonesian dosage forms, warehouse and plant upgrades.

• Growth may be uneven due to economic, political and other disruptions in developing markets.