Good afternoon and a warm welcome to everyone on behalf of Mega Lifesciences. For today's call we have with us our CEO, Mr.

Vivek Dhawan, Sawatdee khrap.

Good afternoon, Vivek here.

CFO, Mr. Thomas Abraham,

Hello.

Deputy CFO, Mr. Manoj Gurbuxani,

Hi, everyone.

Corporate Secretary, Ms. Sujintana Boonworapat, Sawatdee kha.

and myself, Francis Rego. We will start today's session with a quick synopsis of financial performance for FY '25 and 4Q '25, which will be followed by remarks by the CEO on the financial performance for the year.

Finally, we'll open the forum for Q&A. When you ask your questions, please do mention your name and the name of the institution that you represent.

Starting today's proceedings with FY '25 performance. With Myanmar distribution and brands business showing improved sales momentum in 2H '25, with the overall normalized revenue in 2H '25 growing at 5.2% YoY, the overall revenue in FY '25 was at THB 14.147 billion.

The decline has narrowed down from 14% in 1H '25 to 7.8% in FY '25 on a reported basis. The brands business revenue in FY '25 was at THB 8.729 billion, reflecting a growth of 4.3% on YoY basis.

Normalizing for the currency impact due to appreciation of the Thai baht against US dollar and decline in the Mega We Care business in Myanmar, which mostly happened in the first half of '25, the Mega We Care business revenue grew at low double digits in all other markets. Distribution business revenue, with the improved sales momentum in Myanmar in the second half of '25, the decline has narrowed from 34.6% YoY in 1H '25 to 18% YoY for FY '25, after normalizing for the dual currency rate effect in Myanmar.

The decline in Maxxcare revenue is fully attributable to the decline of Maxxcare business in Myanmar, most of it which happened in the first half of '25. Overall gross profits in FY '25 improved to 52.2% of operating revenue, as compared to 50.5% of operating revenue in FY '24.

The change is mainly due to the change in segmental mix. The branded business gross margins were mostly stable at 64.6% in FY '25, as against 65.9% in FY '24.

The decline in gross margins was mainly attributable to the appreciation of Thai baht against the US dollar in FY '25. The distribution business gross margins improved to 27.1% on adjusted basis in FY '25, as against 23.5% on an adjusted basis in FY '24.

The gross margins of distribution business are influenced by principal mix, amongst other factors. SG&A expenses were THB 4.481 billion, a marginally increase by 2.2% on YoY basis, due to plant spending.

SG&A expenses were 31.7% of operating revenue in FY '25, as compared to 28.6% of operating revenue in FY '24. SG&A expenses were higher as a percentage to operating revenue due to the decline in Maxxcare business.

EBITDA in FY '25 came in at THB 2.74 billion, as against THB 2.674 billion in FY '24. With the growth in branded business in FY '25 and improved sales momentum in the second half of '25 in Myanmar distribution and brands business, the EBITDA increased by 2.6% YoY.

Had the Thai baht to USD exchange rate in FY '25 remained at the levels comparable to FY '24, the EBITDA growth would have been in the high single digits range YoY, based on our best estimates. The reported net profits in FY '25 were THB 1.91 million billion, as against THB 2.013 billion in FY '24.

The reported net profit declined in FY '25 by 5% YoY. The decline was mainly attributable to the increase in tax expenses due to the expiry of tax privilege in 2025.

As mentioned earlier, had the Thai baht to USD exchange rate in FY '25 remained at the levels comparable to FY '24 and had the tax privilege continued in FY '25, the reported net profit growth would have been in low double digits YoY, based on our best estimates. With the improved sales momentum in the second half of 2025, the reported PAT has grown at mid-single digits in the second half of 2025 on a YoY basis.

Again, the change was primarily due to the appreciation of the Thai baht to the US dollar. Had the Thai baht remained at the same levels as 2024 second half, the reported net profits growth in second half of '25 would have been in low double digits YoY.

The operating cash flows in FY '25 was healthy at THB 2.77 billion, representing 145% of net profits. Normalizing for the dual currency rate impact in Myanmar, the operating cash inflow represents 130% of reported net profits.

We continue to be a net cash company with a strong balance sheet, as always. In FY '25, THB 664 million was invested in tangible assets.

This spending was mainly driven by the spending towards manufacturing plants in Thailand, Indonesia, Australia, and Vietnam. Moving forward to 4Q '25 performance.

With improved sales momentum, the overall operating revenue in 4Q '25 was at THB 3.66 billion, reflecting a growth of 0.2% YoY on a reported basis. Normalizing for the dual currency rate impact in Myanmar, the overall operating revenue increased by 9.3% YoY.

The brands business revenue in 4Q '25 was THB 2.363 billion, reflecting a growth of 4.2% on a YoY basis. Normalizing for the currency impact due to appreciation of Thai baht against the dollar YoY, the Mega We Care business revenue grew by high single digits in all the markets.

Distribution business revenue in 4Q '25 grew at 19.1% on YoY basis, normalizing for the dual currency rate effect in Myanmar. Overall gross profits in 4Q '25 was similar at 53.3% of operating revenue, as compared to 53.5% of operating revenue in 4Q '24.

The branded business gross margins were 65% in 4Q '25, as against 65.7% in 4Q '24. The slight decline in gross margins was mainly attributable to the appreciation of Thai baht against the US dollar in FY '25.

The distribution business gross margins improved to 29.4% on adjusted basis in 4Q '25, as against 23.1% on an adjusted basis in 4Q '24. The gross margins of distribution business are influenced by principal mix, amongst other factors.

SG&A expenses were THB 1.17 billion, an increase of 8.8% YoY, due to the planned spending in 4Q '25. EBITDA in 4Q '25 came in at THB 827 million, which was very similar to the EBITDA in 4Q '24 at THB 827 million.

In 4Q '25, with continued growth in branded business and the improved sales momentum in Myanmar distribution business, which was partly offset by increased planned SG&A spending, we were able to maintain EBITDA on a YoY basis. Again, as mentioned earlier, had the Thai baht to US dollar exchange rate in 4Q '25 remained at the levels comparable to 4Q '24, the EBITDA growth would have been in the mid-single digits range YoY, based on our best estimates.

The reported net profits in 4Q '25 were THB 577 million, as against THB 639 million in 4Q '24, a decline of 9.8% YoY. This decline was mainly attributable to the increase in tax expenses due to the expiry of tax privilege in 2025.

Again, had the Thai baht to USD exchange rate remained at comparable levels and had the tax privileges continued in 4Q '25, the reported net profit growth would have been in the mid-single digit range YoY, based on our best estimate. I now call upon our CEO, Mr.

Vivek Dhawan, to share his remarks on the financial performance of 4Q '25 and the outlook for the year 2026.

Thank you, Francis. I think Francis has given you a good briefing of what's happened in the last 12 months.

Quarter-to-quarter, yeah, there are certain changes. We have seen recovery in Myanmar, especially in distribution business, over the last 6 months.

There will be some dip in between quarter-to-quarter because of various reasons: distribution mix, branded products that we do, and licenses that we have, it changes a little bit. It's seen a growth.

Average year we are probably grown about 18%, 20%. That's a good sign.

Pharma licenses are getting available, pharmaceuticals, we can still start to import. That looks better, not 100%, but it's in the right direction.

Mega has taken a decision, as you all know, that we are going to build a plant in Myanmar, and we are also progressing with that. Part of our plan, overall capex in the next 3 years, '26, '27, '28, we are projecting to spend about THB 2.7 billion.

That's also on track. Vietnam manufacturing site has started.

It's already piling done, building work has started, we hope to complete that within 15 months. Indonesia plant is nearly ready.

By June, we should be testing the new site. Hopefully, by the third quarter, we should be ready and operational, ready to go by taking batches and starting work from the expanded new facility with the new dosage form, softgel line, etc., that we're putting there.

That's also going as per plan. Myanmar, the land acquisition and the approvals is all under progress.

We are hoping within the next 3 months, if not earlier, to also sign up and start working in Myanmar as well. Rest, the capex side, building capacity side.

Not only that, as you all understand with this new change in the world, globalized, inward-looking economies where every country wants to support local manufacturing, local industry, as well as products made locally get special attention in tender businesses, there is no other way, I think, in many of the large markets where we have a place, but to have manufacturing capability. For Mega, Myanmar, Vietnam, Thailand are anyway core markets and large-sized markets, and Indonesia is something that we are trying to build upon and it's called work-in-progress.

It's a hard job, but we're working on it. That's the basic background.

Southeast Asia still remains a very important part of our strategy. In all these five markets, including Philippines, Cambodia, we are growing in spite of the Thai border conflict.

Cambodia has seen some impact, but overall we are still present there and still doing a good job in Cambodia as well. Having said that, the most important success story for the last 12 months is our branded business.

Though if you look at it, it shows only about 4.3% growth, but because of the baht impact it looks a little skewed, but volume growths are probably much larger, 10% and above, I think higher than the single digit, but low double digit I would say, 10%, 11% in that range. I think we are seeing good branded product growth both in the pharmaceutical healthcare, the prescription drug business, Rx we call it PHC, pharmaceuticals, and the consumer health is also showing gains in many of our over-the-counter drugs: GOFEN, Lorin, Zyrin, [Mucoclear?]

, etc., and the vitamin mineral supplement where we have focus in the herbal area like Eugica and all the other product ranges, for liver health, Livolin, Nat B. We have many areas where we focus on.

A pharmaceutical-like products, clinically proven for the right reasons, and used specifically in various condition-specific areas. Mega remains very focused with our clinically proven, made at GMP facilities, like pharmaceutical drugs, and focused on medicinal supplements.

I think we are continuing to focus on them. We have a reasonably strong pipeline in the right areas, in the categories where we are playing, from neurology, dermatology, osteoporosis, etc., male health, women health, menopause, nutrition, cough and cold, pain.

We are focused on many of these areas, and our pipeline is also focused there, new dosage forms, better products than before, improved dosage forms for adults, for children. A lot of work is going on, and we are driving this further.

As explained to you on my last call, we are building a strategy for the next 5 years to at least from where we are today, at that THB 1,900 million, to at least get to somewhere around THB 3.5 billion. We will come back to you, as I mentioned, sometime in the next call with further details of our plan in the next 5 years by 2030.

It's our road to 2030, and where do we get in terms of our branded business. Distribution business will grow depending on Myanmar being the largest, but Vietnam, a large part is our business, rest is agency business, if we grow, the distribution business in Vietnam will grow.

Cambodia is small. We are still successful, but it's small, but having said that, it will not make a big impact on the overall distribution business.

Myanmar is the biggest area, and we are hoping to see things get better over the years to come. That's the story on the distribution side.

Branded side, I've explained that we are moving in that direction over the next 5 years to build strong, stable, long-term branded business in both the categories. We have a lot of pipeline, including GLP-1s, etc.

We are also working on them. We have got licenses, deals signed.

We have not announced it, but for multicountry deals on licensing, semaglutide and all the other products also are in Mega's pipeline. We will see that in the next 1 or 2 years as registrations come and new pipeline enters into our portfolio, we will also see some growth coming from these new areas as well as the existing areas where we are spending time and money.

Both from product launch, countries-wise, I think we are focused in the countries where we are. We see a lot of opportunity within the region we are: Southeast Asia, Sub-Saharan Africa from one end to the other, and our two outliers as we call them, CIS, Uzbekistan, Ukraine, that part of the area, and the other areas, Latin America, Colombia, Peru, and some other smaller markets.

These are our four focus areas where we believe continue most of the growth coming from the two larger areas, Southeast Asia and Sub-Saharan Africa. With the population, 600, 800 million people in the Sub-Saharan area and 600, 800 million in Southeast Asia, both have potential to grow.

Africa will be slower, but we believe in the next 5, 10 years it could also become fairly large. If we do things right and we are present there correctly, we could build a sizable business in this market.

That's where Mega strategy is, and I think we are moving in the right direction. I have nothing more to add.

Most of it, from capex to plans, etc., we have already informed you, and we are progressing as planned. I would be happy now, and I think all of us will be happy to answer questions.

If you have any, please, as Francis mentioned, please identify yourself, let us know what the question is, and we will give you as many answers as we can now, or otherwise they are available for you even later to answer questions in more detail. Thank you so much, ladies and gentlemen.

Over to you. I forgot to mention that we did double this bottom line as planned, very close.

If you look at real numbers compared to that time on an actual tax and dollar-baht basis, I think we are probably very close to what we had projected, our strategy in 2019, right, of doubling our profit before tax. On that basis, we are very, very close to what we had planned.

We have got there in the last five 5-plus years. Dividend policy, we are maintaining.

We are giving out a THB 1.6. Last year, we also gave, at an absolute value, THB 1.6, I think.

With our cash flows and debt in our hand, we are able to manage and still continue to invest in the building of facilities and investing in the branded business. 2.7-plus, we've got about $120 million we are spending.

That's part of the plan that we are going to spend over the next 4, 5 years. Capex is about THB 2.7 billion, right?

That was some additional information.

Khun Wasu, you can please go ahead with your question.

Thank you for the presentation. I'm Wasu from Maybank Securities.

I have two questions. The first one is about the quarterly trend of the distribution revenue.

In the fourth quarter, the distribution revenue dropped by 26% QoQ. Could you please tell us the reasons?

The distribution business revenue, we also report the adjusted number. Yes, the reported number might look a little different.

When we adjust it for the dual currency rate effect, on a QoQ basis the drop is much lower. The drop is around 3% to 4% on an adjusted basis.

Okay.

There is a dual currency effect which we have explained earlier. On an adjusted basis, the drop is only around 3%.

Okay.

Even the third quarter was a very big quarter, so that big quarter we have been able to maintain, Khun

Wasu. From second to third big quarters.

It also depends on availability of licenses. Fourth quarter, election time in Myanmar.

Licenses were a bit slowed down. Government was building budgets, whatever they were doing, a little bit slowed down.

I think some impact there a little bit. Also products came in third quarter when you have a lot of stocks, people do hoarding in Myanmar.

When you have, you buy more. There are a few plus, minus, but the total impact is only 3%, 4%.

It's not a very huge impact. If you look at an annualized basis, our second half really has a lot of growth compared to, yes.

We have mentioned this also in our earlier analysis that second half of 2025 has grown by around 5% on a YoY basis. It's anyway better than last year, and it's better than the first half.

Yes. In the third quarter, I think you've mentioned that it was obviously a big quarter for distribution.

Was it also a result of the pent-up demand because prior to the third quarter there were shortages of import licenses, but once the licenses became available people rushed to buy? Was that the reason of the big quarter in the third quarter as well?

That's an assumption we can make, but the thing is that we we are not the only one. There are other people who also get licenses.

Some stocks come from here, some from other, but being the largest player, the products that we carry in the pharma industry come from some of the biggest businesses. They are they make up a large part of the business.

It does have an impact because their demand has shrunk, as you know. Burma's market size has gone 30% market not accessible.

The earning earnings are down. All these things are impacting the overall market size, number one.

Plus, when we have availability. When you have availability, then people buy.

This has been the old falls strategy in Myanmar, you'll buy, and then you stock so you can then profit profit from it. Then we also don't want to do that because as a company we also leave out We don't give all the stocks at one go, right?

It so happened that that was a quarter where goods came, licenses came in second quarter, goods arrived, and there was a demand that is pent up, goods got sold. Second quarter, third last quarter, we also some licenses, government was also tightening up because of elections.

There was a bit slow slowness in the licenses plus also demand because they were busy doing other things. People were busy in elections.

I think couple of things happened. Generally, I think the general view is that the licenses availability for pharma at least is a little bit improved.

Even consumer is a little bit improved. Both these conditions are factual.

That's what we are seeing, unless something changes again next year. With the changes happening, if the government is going to move in that direction of improving and letting open the economy a little bit more and make more funds available, then we should see improvement in the Myanmar distribution business over the next year.

That's the view we have. We'll keep you updated.

You will see reality every quarter. That's the view based on facts on the ground that we see and we read and we hear that is what's happening in the country.

Thank you. My next question is on the revenue guidance for this year.

I'm not sure if you've mentioned it already. What was your target for the revenue growth this year?

High single digits, I would say, between 8% to 10%, 12% in that range somewhere. I'm talking about branded business mostly, but including distribution also will grow somewhere there.

That's the hope. But 8% to 12%, and with that probably the bottom line will grow a little bit higher than 10% to 12%, I think.

Maybe between that in the double low single digits revenue will grow and in the high single digits, but the bottom line will grow in the low double digit, yeah.

Thank you.

Khun Naruemon, you may go ahead, please.

Yes, kha. Thank you very much for your presentation,

na kha. Kha.

I have a few questions. First, on the fact number, how much Myanmar contributions into your distribution sales in the fourth quarter?

How much?

Normally we don't give country-wise numbers.

Break up.

Myanmar still constitutes the largest.

Largest. Country by country, exact numbers change.

Yeah.

Myanmar will still be the largest. At one time it was more than 80% in the old days, but still a large portion.

After it declined also, Myanmar still as a distribution country alone, standalone distribution-wise, still it will be the largest.

Sure, kha. Understood, kha.

Khob khun na kha. Next question: what is your view on the distribution's business, what will be the strategy?

Maybe we should talk like this, yeah, because we are waiting for your 5-year plan, right? Distribution strategy,

as I've said, it depends on Myanmar. Our distribution strategy is very clear.

In Vietnam, we are focused on our own brand and agency businesses largely. Whatever growth comes is 100% marketing and agency business.

We have a few partners who we do full distribution with, so that's not a very strong growth plan for future becoming a large distributor. A, our brand; B, agency, full-service business.

We represent the brand, do marketing, everything we do. Our team does it.

There is some companies who have their own team and we do distribution for them. That's not a very large part of the focus area.

When you look at Vietnam, you'll see as our branded business plus agency business, which is a higher-margin business, and that's the main area. You will not see a huge Maxxcare.

It's largely Mega We Care, let's put it that way. Cambodia, we have a very large branded business, very profitable, very successful, and we are still doing that as it is.

We also have a distribution business for pharma and consumer both, and we still do, and I think it's still going to grow. It's a very small market anyway.

Cambodia as compared to other countries is a 12, 14 million people market, relatively smaller. We are still very strong in that area, but we can't expect huge growths in distribution in Cambodia.

The only place you can see a turnaround is Myanmar, where we have very good partners, very good principals. If things turn around, the economy gets better, licenses get easier, and specially if we start manufacturing and we have partners who also manufacture locally, then we should see a turnaround in a profitable manner in distribution business.

You cannot expect that to become the way it was, earlier planned to become $500 million, but it will grow. Cautiously it will grow, and we will have to watch and do these things.

It's not something that you or we or anybody can predict. It a lot depends on the economy and the situation in the country.

We are there. We are strong.

The good thing is Mega has great partners, we have good principals who have not left the country, who are still working in the country. They have team there, they're invested there.

That's the beauty. With that, with good partners and with our good team in the country, I think our business will carry on and we'll continue.

If market dynamics change, it'll grow. That's the distribution guideline.

Very difficult to pinpoint that much. This is the strategy, and we are not doing distribution anywhere else, nowhere else.

Only Myanmar is the largest, Cambodia is the second, where we still represent Vietnam with agency business. That's distribution strategy.

With that, whatever happens, will it get grow? In the next 5 years it'll grow.

Even if Myanmar grows at 8%, 10% every year and can continue that growth in the next 5 years, it'll grow, driven by Myanmar and also driven by Cambodia. The biggest growth and the future, as we said, the other part is our own branded business.

They are both, and that is where the larger focus for the company and the branded part that we have a team separately only doing our own brand, Mega We Care, so that's where lies our next growth phase for next 5 years.

Kha. Kha.

I got it. What is the growth target for distributions for this year na kha?

Already told you, Naruemon. I just said just now.

Growth target, our overall target is anywhere between high single digit for the whole company. In that, distribution also will be around the same area.

Distribution may be 5% 5% to 8%, but the branded business is where we focus on. Distribution depends on the environment.

The larger part of Mega's profit also comes out of the branded business, right? The impact on the bottom line, other things, are not very, very significant.

It's there, but not significant. We don't give a lot of guidance because it has a lot of factors: principal factor, country factor, country largely Myanmar factor.

We are still targeting that it should do between 5% to 10% in that range. It should happen, looking at the situation, looking at the changes happening in Myanmar, it should happen.

The branded business as we said, between 8% to 12% in that range. That is a little bit higher in our own branded business because it is Thailand, multiple countries.

Is it fair to say that the distributions has been the bottom, the lowest level for 2025, but growth, yes, depends on the Myanmar developing in the future? Is it fair to say in this?

I think we have said that before also, I think it's seen the bottom and we started to recover, right? 4Q '25, they have recovered, right?

If you look at relatively decline of 45%, 43% in '24, '25 has seen

From quarter three.

Quarter three onward, right?

Second half.

Second half onward, it has seen an improvement. 18%, 19% you said, over quarter one, quarter one and two, right?

Quarter two.

Mm-hmm. Okay.

That main assumption we are all making that based on facts on the ground, but again, this is a geopolitical factor. It has nothing to do with us and it's more our capabilities, our abilities are as much there in the country.

If the changes in economy, as we are all seeing, engagement happening, all these things changing, and if this happens, then it should be better. We should see better things going forward in Myanmar.

Right, kha.

Kha. My last question on capex, I may miss number you may talk earlier, I'm sorry.

Do you have the capex plan for this year?

This year we did not give, but I said within 3 years, 2026, 2027, 2028, we are planning to spend THB 2.7 billion. Exact number for 2026, I don't think we have given yet, but I'm sure later on they can tell you.

The spending will anyways happen over 3 years.

Over 3 years. It depends often at what stage the factory, the payments start to go, machinery starts to come in, there's a timeline.

Over 3 years, it's THB 2.7 billion.

Dai loei kha. Kha.

Thank you very much, na kha. Khrap.

Khun Yuwadee, please go ahead.

Yes. Sawatdee kha.

Thank you, Khun Vivek, for your presentation. Sawatdee kha.

One I have some questions about Myanmar and Myanmar only. First, how can you be sure that Myanmar has bottomed out?

Because we saw a spike in third quarter, but then fourth quarter it has come back down to lower year-on-year. Why do you think Myanmar has bottomed out?

What kind of signs have you seen in that country or your business to be sure about that?

I think people are getting used to it, and there's a lot lot less fighting happening around the areas. The army has taken control a lot of areas that they have lost.

There's a lot of news around that you can read, right? You can see that on the ground that there's more life, more movement in the city, more cars if you go to Yangon, walk around, more restaurants open.

Generally, life is is looking a little bit more either they're used to it or it's improving or there's a sign of improvement. With that happening, and they have also called the doctors back to work, people who had gone on CDM strike.

A lot of these small, small things happening, availability of licenses getting a little bit better, appointing a a new president, and things that they're trying to, whatever, the whole environment they're trying to bring, and with this they also want to show that companies to come and invest and release more money to do trade and business. It's a it's the general understanding that within the areas where they're operating we are operating in, whether if there's going to be an improvement with that improvement happening, and trade improving, mean, beans, corn, and all the other and even if minerals and things like that start to get exported out of Myanmar, the revenue stream improves.

If that improves, then there's more cash available. With that happening, there's a general understanding that the economy should get a little bit better.

That's where we are coming from. That's the assumption that we are making,

yeah.

Not only second third quarter improve because licenses improve, buying and purchasing habits improve. The drop in the fourth quarter is very marginal, 3%, 4%, as Francis said, this can happen, and between two quarters, because you don't have the same products available in the third quarter and the fourth quarter sometimes.

When the licenses are issued, they don't get issued together. It's not that what you want you get all the time.

Sometimes it also can be because of this discrepancies, not perfect. It's not a perfect status at the moment that we have everything available.

If I have everything available, then I can say buying power is not good. It's not always everything is available.

Generally, you see a better situation in the market, buying behavior, pharmacies, shops, consumer outlets, there's more products available, and buying behavior is improving. This is a general market feedback that we get from the market.

There's an improvement. It's not huge, but if this trend continues, we are saying that maybe there will be an improvement going forward.

It's not shouldn't go backward.

Thank you. Next question: did you mention about your distribution sales growing quarter-to-date?

I'm not sure if I heard that correctly.

Going?

Khun Yuwadee,

the Distribution sales.

the distribution business which you are looking at on a reported basis is not the correct measure. You have to look at the normalized basis.

Normalized basis QoQ, we have declined only by 2.6%. On YoY basis in fourth quarter, we have increased by 19%.

You should look at distribution numbers on normalized basis, not on reported basis.

Okay. What about quarter-to-date, 2026?

That's what I'm talking about.

Talking about current year, right? Are you talking about current year, 2026?

Yes.

2026.

Exactly. Exactly.

Quarter-to-date, how is the performance? We're in

February and we're not reporting that. Sorry.

I can't make that comment at the moment, but yes, we are still positive and we continue. As I've mentioned before, please, distribution business as a contributor overall, in spite of things declining 40% in '24, look at the revenue and the bottom line changes.

The impact is not huge. The real strength of Mega's brands and the agency businesses that we do in other markets where we represent on full agency basis, branded business is also what is driving our bottom line, right?

There is a impact, but the impact is not huge. We continue to remain positive on distribution in Myanmar with all these factors that you also know, we also know, we read and understand, and being in the country, though we believe it should get better.

The next year in the pharma business specially should look better in Myanmar, pharma distribution point of view as well as our branded business. That is where

Thank you. That's all for me.

Thank you.

Thank you.

Thank you, Khun Yuwadee. Khrap.

Khun Settapong, please go ahead.

Sawatdee

khrap. Settapong from Kasikorn, na khrap.

Just another question in the Myanmar, na khrap. I'm not sure how do you balance the pricing strategy and affordability in the Myanmar amid the ongoing currency volatility and the weak consumer purchasing power?

Very difficult. Consumer buying power goes down with the situation and kyat.

The good thing is the kyat is now much more lower than it used to be last year, at 4,500 today to 3,200 something like that, right? Somewhere there.

Around 4,000.

Around 4,000.

It went to around 5,500.

All right. Come down.

Actually affordability is better now. That's one fact.

Second is anyway, Myanmar being a generic market, the prices are very, very low. Always has been a very, very low price market from India.

It's only 90% of the market generic market, cheap Indian, Bangladeshi, other companies. Within that market also, any market, even in Africa, if you are a 100 million population, 5, 10 million people still have the money to pay.

If you go to Bumrungrad and you walk into BDMS, please go there and sit there and you'll see how many people from Burma come and do medical treatment in Thailand and pay Bumrungrad prices, which is not cheap. Even for us, it is not cheap.

There is a group of people, some population of 10%, 5%, who have the ability to pay for a certain type of product with their trust. That is also there.

We have both, and our product range extend from the low end to the high end. We have both, right?

We have the high end of Servier's and the lower end of other companies also, who are very competitive and high quality. We are playing in all the categories.

I think we are not the lowest and we are not going for the 90% of 50 million people population in Myanmar, right? They're not all our customers anyway, the kind of business we do.

We are across the spectrum that we are targeting quality products, affordable products of the right quality. There's a credibility and there's a trust in the brand Mega We Care in the country for the last 30 years, 32 years.

We have built that. I think that's the strength we have.

Okay. Thank you for your answer, khrap.

Let's moving on to the Indonesia. Could you provide an update on the Indonesia regarding the strategy growth, include the development of the product innovation, the drug license progress, and which product categories you are focusing on?

I don't know if we have that many details on Indonesia, but I think Indonesia we mentioned already that our plant is being built, is ready. In June, commissioning is going on.

By September, it should be ready to operate. We are already doing a lot of product registrations in Indonesia for import, a lot of them have got approval already, some are in pipeline.

We have already launched and seen about 30 27% growth in unit sales and unit quantities produced in the factory over the last year. We are on target as we have mentioned that we want to get to by 2030 to $150 million.

We believe that with the way our pipeline is coming, both pure pharma, which is the larger part of our business in Indonesia is always going to be 70%, 80% of our business will be pharma, because it goes into tenders, hospitals, government of buying pharmacies, and there's another 20% of our business which is consumer health, which is vitamin, mineral, supplements, herbals, and over-the-counter drugs also we have launched. It's going to be a 20 70/30 kind of mix that the way it looks like.

We are progressing in that direction with the range of products that we have selected and registered in the country. We have a pipeline, local development going on, which we develop locally, register locally, and import first and then register locally.

There are two directions because we have a pharma company there, we can also import and register in Indonesia, some of the products which are not made locally, which are allowed for import, and then within 5 years you will make locally. That's our strategy, and we are working in that direction to get to $50 million by 2030.

Yeah. Okay.

Thank you very much, khrap. Could you recap for the target growth in Indonesia for this year?

This year growth, again, yeah, is in the same range. Average overall we're talking about between 8%

to

12% in the branded business. They'll be there.

If Indonesia is slightly higher because they have a lot of pipeline is new added there, some other will be lower, average is, as I said, 8% to 12%. Indonesia may be a little bit higher, 10%, 11%, 12%.

It's not a exact number, but it's in that range. Every country has their own target.

I don't have every country's target with me at the moment. In that range, I think.

We are targeting to get between minimum of 8%, maximum of upper side of about 10%, 11%, 12% in terms of revenue growth for the branded business, Mega We Care.

Okay. Thank you very much, khrap.

That's all my question.

Thank you. Paramount.

If there are no other questions, then we will conclude this call. Thank you very much.

Thank you, everyone, for joining the call.

Thank you. Sawatdee khrap.

[unclear]. Kha.

Khob khun kha.

Thank you. Thank you very much.

Sawatdee kha.