Mega Lifesciences (MEGA) Q4 2024 earnings summary

Executive summary

• FY24 operating revenue was THB 15,344mn, flat year-over-year, as growth in Mega We Care™ branded business offset a decline in Maxxcare™ distribution, mainly in Myanmar.

• Reported net profit for FY24 was THB 2,013mn, up 1.0% compared to FY23, with adjusted net profit down 3.9% year-over-year due to lower forex losses and branded business growth.

• Total assets increased to 14,210 million Baht as of December 2024, compared to 14,115 million Baht at the end of 2023.

• Cash and cash equivalents rose to 3,463 million Baht at year-end 2024 from 2,357 million Baht in 2023.

• Southeast Asia contributed 78.4% of Mega We Care™ revenue, with Indochina accounting for 61.8% in FY24.

Financial highlights

• Mega We Care™ revenue grew 4.6% YoY to THB 8,371mn, while Maxxcare™ revenue declined 9.9% YoY to THB 6,667mn, mainly due to Myanmar.

• Overall gross margin improved to 50.5% in FY24 from 45.2% in FY23, driven by segment mix and higher Mega We Care™ margins.

• Gross margin improved as cost of sales decreased to 7,590 million Baht from 8,586 million Baht year-over-year.

• SG&A expenses rose 4.6% YoY, reaching 28.6% of revenue, reflecting planned spending and lower Maxxcare™ sales.

• Operating cash inflow was THB 2,401mn, representing 119% of net profits.

Outlook and guidance

• Target to double consolidated net profit by 2025 compared to 2019, after having doubled 2014 net profit by 2019.

• Over 120 new products in the pipeline, with more than 60 launched between 2022-2024, expected to drive future sales.

• Expansion into Indonesia via acquisition of a manufacturing facility, aiming for meaningful contribution from 2026.

• Planned investment of THB 540mn during 2025-26 for plant upgrades and ESG initiatives.

• Retained earnings increased to 7,756 million Baht, supporting future growth and dividend capacity.