Innature Bhd · MYX:INNATURE
Innature Bhd — 2Q2023 Earnings Presentation
24 slides from Innature Bhd's earnings presentation, Aug 25, 2023
Slide 1: 2Q2023 Results
2Q2023 RESULTS 25TH AUGUST 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: 1H2023 Performance at a Glance
1H2023 PERFORMANCE AT A GLANCE RM66.2m 68.5% RM141.1m Net Cash Revenue GP margin Net assets Net gearing ratio 9.7% reported 12.9% same store 1H2022: 66.6% as at 30.6.2023 as at 30.6.2023 RM4.6m 0.68 sen RM10.5m RM14.1m Core PAT EPS Dividend paid in Net operating cashflow 7.0% of revenue 1H2022:
Slide 4: One: 2Q2023 Financial Performance
ONE 2Q2023 FINANCIAL PERFORMANCE
Slide 5: A Softer 2Q Topline (Y-o-Y), as Expected
A SOFTER 2Q TOPLINE (Y-O-Y), AS EXPECTED 2Q2023 YoY change YoY change YoY change Revenue RM’000 same store constant forex reported Malaysia 26,607 -16.3% -15.1% -15.1% Vietnam 6,185 -24.8% -19.3% -15.0% Cambodia 955 -21.2% -5.0% +0.8% Group Total 33,747 -18.0% -15.6% -14.7% • Challenging retail envi
Slide 6: Seasonally Stronger 2Q, Q-o-Q
SEASONALLY STRONGER 2Q, Q-O-Q Quarterly Revenue RM’000 33,747 32,425 955 923 6,185 6,839 MALAYSIA Hari Raya 24,663 26,607 celebration 1Q2023 2Q2023 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), IT (-RM0.2m), traveling (-RM0.2m) In line with revenue trend, partially mitigated by higher GP margin 2Q2023 % of 2Q2022 % of Core Operating Results RM’000 Revenue RM’000 Revenue Gross profit 22,842 67.
Slide 8: Higher Interest Income Lifted Core PBT & PAT
HIGHER INTEREST INCOME LIFTED CORE PBT & PAT From Core Operating Profit 2Q2023 % of 2Q2022 % of YoY to Core PAT RM’000 Revenue RM’000 Revenue change Core operating profit 2,400 7.1% 7,367 18.9% -67.4% Interest income 570 127 Forex (loss)/gain (123) 106 MFRS16 effect (30) 17 Others (21) (32) Core PBT
Slide 9: Operating Deleverage Impacted All Markets
OPERATING DELEVERAGE IMPACTED ALL MARKETS 2Q2023 % of 2Q2022 % of Core PAT RM’000 Revenue RM’000 Revenue Malaysia 2,916 11.0% 5,620 17.8% Vietnam (616) (10.0)% 163 2.2% Cambodia 66 6.9% 99 10.4% Market Total 2,366 7.0% 5,882 14.7% Corporate (318) (1.6)% (215) (0.5)% Group Total 2,048 5.4% 5,667 14.2
Slide 10: Two: 1H2023 Financial Performance
TWO 1H2023 FINANCIAL PERFORMANCE
Slide 11: 1H2023 Topline
1H2023 TOPLINE 1H2023 YoY change YoY change YoY change Revenue RM’000 same store constant forex reported Malaysia 51,270 -11.6% -10.6% -10.6% Vietnam 13,024 -17.7% -11.2% -8.0% Cambodia 1,878 -17.1% -0.4% +5.2% Group Total 66,172 -12.9% -10.5% -9.7% • Subdued consumer sentiment affected by inflation
Slide 12: 1H2023 Core Operating Results
1H2023 CORE OPERATING RESULTS Mainly staff costs (-RM2.9m), rental (-RM0.5m), traveling (-RM0.4m), IT (-RM0.3m). In line with revenue trend, partially mitigated by higher GP margin 1H2023 % of 1H2022 % of Core Operating Results RM’000 Revenue RM’000 Revenue Gross profit 45,341 68.5% 48,260 66.6% EBI
Slide 13: 1H2023 Core PBT & PAT
1H2023 CORE PBT & PAT From Core Operating Profit 1H2023 % of 1H2022 % of YoY to Core PAT RM’000 Revenue RM’000 Revenue change Core operating profit 5,565 8.4% 12,915 17.8% -56.9% Interest income 1,060 273 Forex (loss)/gain (78) 251 MFRS16 effect (104) 81 Others (19) 34 Core PBT 6,424 9.7% 13,553 18.
Slide 14: 1H2023 Core PAT by Market
1H2023 CORE PAT BY MARKET 1H2023 % of 1H2022 % of Core PAT RM’000 Revenue RM’000 Revenue Malaysia 5,677 11.1% 10,007 17.7% Vietnam (641) (4.9)% 297 2.1% Cambodia 127 6.7% 179 10.1% Market Total 5,162 7.8% 10,483 14.5% Corporate (546) (0.8)% (340) (0.5)% Group Total 4,616 7.0% 10,143 14.0% Note: Core
Slide 15: Three: Financial Position & Cashflow
THREE FINANCIAL POSITION & CASHFLOW
Slide 16: Healthy Balance Sheet
HEALTHY BALANCE SHEET • Asset light • Net cash financial position with RM20 million undrawn banking facility.
Slide 17: Cash Generative Business
CASH GENERATIVE BUSINESS Net Operating Cashflow, Dividend & Capex Paid RM’000 37,690 35,741 29,528 17,647 17,647 14,118 10,461 7,059 6,181 3,444 4,019 1,677 2020 2021 2022 1H2023 Net operating cashflow Dividend paid Capex paid • Flexibility in capital management & dividend policy • Annual dividend p
Slide 18: Four: Next Steps
NEXT STEPS €3 THE Bopy sHoP
Slide 19: Despite Challenging Landscape, We Have Continued to Invest in Business
DESPITE CHALLENGING LANDSCAPE, WE HAVE CONTINUED TO INVEST IN BUSINESS • Improved GP margin of 68.5%, enabling flexibility to the Group in devising tactical promotions to stimulate customer spending. • Opened /Relocated 4 stores, and completed renovation of key stores (e.g. KLCC and Indochina Plaza
Slide 20: 2H2023 Priorities
2H2023 PRIORITIES • Focus on productivity improvement and customer acquisition. • Continue with ecomm acceleration. • 4 confirmed store openings. • Ongoing cost management with planned closure of 2 underperforming stores.
Slide 21: Thank You
THANK YOU HE BEAUTY! wo Vv Effective. Ethical. Vegan.
Slide 22: Supplementary Information
26 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 1 - - 1 Closure (1) (1) - (2) Retail stores at 30.6.2023 73 37 3 113 Pop-up stores at 30.6.2023 4 4 - 8 Retail + pop-up stores at 30.6.2023 77 41 3 121
Slide 24: Reconciliation from Core to Reported PAT
RECONCILIATION FROM CORE TO REPORTED PAT 2Q2023 2Q2022 1H2023 1H2022 PAT reconciliation RM’000 RM’000 RM’000 RM’000 Core PAT 2,048 5,667 4,616 10,143 Business development expenses (236) - (236) - One-off gains - - 281 - Service charges income from Natura - - 153 - Natura results - (50) - 5 Reported