Innature Bhd · MYX:INNATURE
Innature Bhd — Q3 2023 Earnings Presentation
24 slides from Innature Bhd's earnings presentation, Nov 23, 2023
Slide 1: 3Q2023 Results
3Q2023 RESULTS 23RD NOVEMBER 2023
Slide 2: Disclaimer
DISCLAIMER This presentation contains certain forward looking statements with respect to InNature Berhad’s (“InNature”) financial condition, results of operations and business, and management’s strategy, plans and objectives for InNature. These statements include, without limitation, those that expr
Slide 3: Year to Date Performance at a Glance
YEAR TO DATE PERFORMANCE AT A GLANCE RM98.2m 68.5% RM141.8m Net Cash Revenue GP margin Net assets Net gearing ratio 9.6% reported 11.9% same store 9M2022: 66.0% as at 30.9.2023 as at 30.9.2023 RM7.7m RM6.4m RM12.7m RM14.1m Core operating profit Core PAT Dividend paid in Net operating cashflow 7.
Slide 4: One: 3Q2023 Financial Performance
ONE 3Q2023 FINANCIAL PERFORMANCE
Slide 5: 3Q2023 Topline
3Q2023 TOPLINE 3Q2023 YoY change YoY change YoY change Revenue RM’000 same store constant currency reported Malaysia 26,038 -5.8% -5.4% -5.4% Vietnam 5,127 -28.2% -21.4% -25.2% Cambodia 858 -21.8% -3.9% -5.4% Group Total 32,023 -10.5% -8.4% -9.2% • Consumer sentiment weighed down by cost-of-living i
Slide 6: Seasonally Quieter Quarter
SEASONALLY QUIETER QUARTER Quarterly Revenue RM’000 32,425 33,747 32,023 955 858 923 6,839 6,185 5,127 24,663 26,607 26,038 1Q2023 2Q2023 3Q2023 Malaysia Vietnam Cambodia
Slide 7: Softer Core Operating Profit Due to Revenue Downtrend & Higher Opex
SOFTER CORE OPERATING PROFIT DUE TO REVENUE DOWNTREND & HIGHER OPEX Mainly staff costs (RM1.1m), marketing (RM0.4m), IT (RM0.3m), rental (RM0.2m) & fixed assets written off (RM0.2m) Partially mitigated by higher margin Core Operating Results 3Q2023 % of 3Q2022 % of (constant currency) RM’000 Revenue
Slide 8: From Core Operating Profit to Core PAT
FROM CORE OPERATING PROFIT TO CORE PAT 3Q2023 % of 3Q2022 % of YoY constant currency RM’000 Revenue RM’000 Revenue change Core operating profit 2,140 6.7% 5,524 16.0% -61.8% Interest income 436 208 Forex (loss)/gain (189) 151 Others (14) 150 Core PBT 2,373 7.4% 6,033 17.5% -60.6% Tax (678) (1,539) C
Slide 9: Operating Deleverage Impacted All Markets
OPERATING DELEVERAGE IMPACTED ALL MARKETS Core PAT 3Q2023 % of 3Q2022 % of (constant currency) RM’000 Revenue RM’000 Revenue Malaysia 2,609 10.0% 4,506 16.7% Vietnam (768) (14.5)% (1) (0.0)% Cambodia 35 4.1% 124 14.4% Market Total 1,876 5.8% 4,629 13.4% Corporate (181) (0.5)% (135) (0.4)% Group Tota
Slide 10: Two: 9M2023 Financial Performance
TWO 9M2023 FINANCIAL PERFORMANCE
Slide 11: Year to Date Topline
YEAR TO DATE TOPLINE 9M2023 YoY change YoY change YoY change Revenue RM’000 same store constant currency reported Malaysia 77,308 -9.3% -8.9% -8.9% Vietnam 18,151 -21.1% -14.4% -13.6% Cambodia 2,736 -18.6% -1.5% +1.6% Group Total 98,195 -11.9% -9.8% -9.6% • Subdued consumer sentiment affected by inf
Slide 12: Year to Date Core Operating Profit
YEAR TO DATE CORE OPERATING PROFIT Mainly staff costs (RM4.0m), rental (RM0.6m), IT (RM0.5m), traveling (RM0.3m), marketing (RM0.3m), ecomm selling exp (RM0.2m) & additional fixed assets written off (RM0.1m) Partially mitigated by higher GP margin Core Operating Results 9M2023 % of 9M2022 % of (cons
Slide 13: From Core Operating Profit to Core PAT
FROM CORE OPERATING PROFIT TO CORE PAT 9M2023 % of 9M2022 % of YoY constant currency RM’000 Revenue RM’000 Revenue change Core operating profit 7,716 7.9% 18,443 17.2% -58.2% Interest income 1,491 484 Forex (loss)/gain (270) 402 Others (6) 172 Core PBT 8,930 9.1% 19,501 18.2% -54.2% Tax (2,502) (4,9
Slide 14: Year to Date Core PAT by Market
YEAR TO DATE CORE PAT BY MARKET Core PAT 9M2023 % of 9M2022 % of (constant currency) RM’000 Revenue RM’000 Revenue Malaysia 8,340 11.1% 14,476 17.3% Vietnam (1,337) (7.4)% 254 1.2% Cambodia 161 5.9% 307 11.4% Market Total 7,164 7.5% 15,037 14.0% Corporate (736) (1.0)% (475) (0.4)% Group Total 6,428
Slide 15: Three: Financial Position & Cashflow
THREE FINANCIAL POSITION & CASHFLOW
Slide 16: Healthy Balance Sheet
HEALTHY BALANCE SHEET Arose from the Group’s acquisition of TBS operations in West Malaysia, Sabah and Labuan in previous years. Mainly rent deposits, Mainly trade dues prepayments and and accruals for trade receivables operating expenses. (credit card sales, due from landlord / retail space provide
Slide 17: Cash Generative Business
CASH GENERATIVE BUSINESS Net Operating Cashflow, Dividend & Capex Paid RM’000 Lower net operating 37,690 cashflow following 35,741 revenue downtrend 29,528 & higher opex 17,647 17,647 12,667 14,118 7,059 6,181 5,431 1,677 3,444 2020 2021 2022 9M2023 Net operating cashflow Dividend paid Capex paid •
Slide 18: Four: Next Steps
NEXT STEPS €3 THE Boy sHoP
Slide 19: We Have Continued to Progress Despite Challenging Landscape
WE HAVE CONTINUED TO PROGRESS DESPITE CHALLENGING LANDSCAPE • Improved GP margin of 68.5%, enabling flexibility to the Group in devising tactical promotions to stimulate customer spending. • Net addition of 1 store in 3Q2023. • Pop-up stores gained traction with +149% YoY growth, 2.6% contribution t
Slide 20: 4Q2023 Priorities
4Q2023 PRIORITIES • Focus on productivity improvement and customer acquisition. • Continue with ecomm acceleration. • 1 confirmed store opening in Malaysia. • Ongoing cost management with close monitoring of underperforming stores.
Slide 21: Thank You
THANK YOU HE BEAUTY! wo Vv Effective. Ethical. Vegan.
Slide 22: Supplementary Information
29 SUPPLEMENTARY INFORMATION
Slide 23: Retail Store Count
RETAIL STORE COUNT Malaysia Vietnam Cambodia Group Retail stores at 1.1.2023 73 38 3 114 Opening 2 2 - 4 Conversion from pop-up to full-fledged 1 - - 1 store Closure (1) (3) - (4) Retail stores at 30.9.2023 75 37 3 115 Pop-up stores at 30.9.2023 3 4 - 7 Retail + pop-up stores at 30.9.2023 78 41 3 12
Slide 24: Reconciliation from Core to Reported PAT
RECONCILIATION FROM CORE TO REPORTED PAT 3Q2023 3Q2022 9M2023 9M2022 PAT reconciliation RM’000 RM’000 RM’000 RM’000 Core PAT (constant currency) 1,695 4,494 6,428 14,562 Forex effect 12 9 - 3 MFRS 16 effect (2) 41 (106) 126 Business development expenses (636) - (872) - One-off gains (3) - 278 - Serv