- Overall Clinic Business Revenue Growth (India): 24% over Q4 FY23.
- Product Business Revenue Growth (India): 25% over Q4 FY23.
- Service Business Revenue Growth (India): 24% over Q4 FY23.
- Body Contouring Segment Growth (India): 77% over Q4 FY23.
- Haircare Category Revenue Growth (India): 18% over Q4 FY23.
- New Customer Acquisition: 3,600+ new customers.
- Clinic Relocations: 2 clinics in Q4 FY24, 6 relocations for the year.
- Relocated Clinics Collection Growth: 81% over Q4 FY23.
- Renovated Clinics Collection Growth: 21% over Q4 FY23.
- Customer Count Growth (India): 14% over Q4 FY23.
- NPS Score: 88 in Q4 FY24.
- Clinic EBITDA Improvement (India): From 21% in Q4 FY23 to 28% in Q4 FY24.
- Haircare Revenue Growth (India): 18% in Q4 FY24.
- Nutraceuticals Growth (India): 31% over Q4 FY23.
- Revenue from Operations (India): INR53 crores for Q4 FY24, 21% growth over Q4 FY23.
- Standalone EBITDA (India): INR2.2 crores in Q4 FY24.
- Standalone Profit-Loss After Tax (India): Negative INR95 crores in Q4 FY24.
- Middle East Clinics Collection Growth: 1% at constant currency versus Q4 FY23.
- Body Business Growth (Middle East): 18% versus Q4 FY23.
- Haircare Growth (Middle East): 13% versus Q4 FY23.
- Skin Glow Solutions Growth (Middle East): 8% versus Q4 FY23.
- Customer Count Decline (Middle East): 3% versus Q4 FY23.
Release Date: May 28, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Kaya Ltd (BOM:539276, Financial) reported a 24% revenue growth in its clinic business over Q4 FY23.
- Product business at clinics saw a 25% revenue growth, driven by categories like hair care, skin care, and nutraceuticals.
- Service business registered a 24% revenue growth, with body contouring showing a robust 77% growth over Q4 FY23.
- Customer count grew by 14% over Q4 FY23, aided by omnichannel routes.
- Clinic EBITDA improved from 21% in Q4 FY23 to 28% in Q4 FY24, reflecting better operational efficiency.
Negative Points
- Standalone profit-loss after tax (PAT) for Q4 FY24 was negative INR95 crores, impacted by a one-time cost of INR90 crores related to Middle East sales.
- Customer count in the Middle East declined by 3% versus Q4 FY23.
- The company has INR195 crores in total borrowings, which includes loans from directors and Kotak Bank.
- Despite growth in recent years, overall revenue has remained stagnant at INR400 crores since 2017.
- The company is planning a rights issue to raise funds, which may be seen as a negative by some investors due to the dilution of shares.
Q & A Highlights
Q: When do you see the trend of Botox and other plastic surgeries catching up in India, and how beneficial will it be for Kaya? Also, what percentage of your services business does Botox and other plastic surgeries make up?
A: Antiaging services, including Botox and fillers, already constitute about 18% of our business in India. While affordability remains a challenge, we are offering these services at competitive prices and with financing options. The services business has grown by 24% year-over-year, indicating a positive trend.
Q: How do you plan on reducing your debt, and how much money will you receive from the sale of your Middle East businesses?
A: The total borrowings are around INR195 crores. We will use INR50 crores from the Middle East sale to pay off the Kotak loan, and the remaining INR145 crores will be paid off through a rights issue once the sale process is complete.
Q: Out of the 95 clinics, how many have reached breakeven?
A: All clinics in India are currently EBITDA positive, with an average clinic EBITDA of around 28%.
Q: What levels of margin are you aspiring to stabilize upon at the company level?
A: We aim to achieve a clinic EBITDA of 30% to 32%. Currently, we are at 28% due to some nonperforming clinics. At the corporate level, we are at a positive EBITDA of around 2% to 3%.
Q: What is your strategy on the product side, and how do you plan to leverage it for growth?
A: The product business has seen a 24% growth in the last quarter and constitutes 18% of our total revenue. We are focusing on launching new products, especially in haircare and nutraceuticals. While we are not mass-marketed, we are enhancing our omnichannel activities to get closer to customers.
Q: How does the product business stack up in terms of profitability?
A: There is no cash burn in the product business. Last year's product sales were around INR39 crores, and we expect to continue growing at 20% to 25% annually.
Q: Have you completely exited the international business after the sale?
A: Yes, once the sale is complete, we will exit the international business entirely. There will be no further impairments next year.
Q: What is the current EBITDA at the company level for India?
A: At the India standalone level, the corporate EBITDA is around 2% to 3%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
