Mega Lifesciences Public Company Limited (MEGA) Earnings Call Transcript & Summary

Good afternoon, and a warm welcome to everyone. On behalf of Mega Life Sciences, for today's call, we have with us our CEO, Mr. Vivek Dhawan.

[foreign Language] Good afternoon. Vivek here.

CFO, Mr. Thomas Abraham.

Hello.

Deputy CFO, Mr. Manoj Gurbuxani.

Hi, everyone.

Corporate Secretary, Miss. Sujintana Boonworapat.

[Foreign Language]

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. And 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. So 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% Y-o-Y, 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 Y-o-Y basis. Normalizing for the currency impact due to the appreciation of the Thai baht against U.S. 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% Y-o-Y in 1H '25 to 18% Y-o-Y for FY '25 after normalizing for the dual currency rate effect in Myanmar. The decline in Maxcare revenue is fully attributable to the decline of Maxcare business in Myanmar, most of 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 U.S. 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, marginally increased by 2.2% on Y-o-Y basis due to planned 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 Maxcare 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% Y-o-Y. 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 Y-o-Y based on our best estimates. The reported net profits in FY '25 were THB 1.91 billion as against THB 2.013 billion in FY '24. The reported net profit declined in FY '25 by 5% Y-o-Y. 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 Y-o-Y 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 Y-o-Y basis. And again, the change was primarily due to the appreciation of the Thai baht to the U.S. dollar and had the Thai baht remained at the same levels as 2024 second half, the reported net profit growth in second half of '25 would have been in low double digits Y-o-Y. The operating cash flows in FY '25 was healthy at THB 2.77 billion, representing 145% of net profit. 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% Y-o-Y on a reported basis. Normalizing for the dual currency rate impact in Myanmar, the overall operating revenue increased by 9.3% Y-o-Y. The brand business revenue in 4Q '25 was THB 2.363 billion, reflecting a growth of 4.2% on a Y-o-Y basis. Normalizing for the currency impact due to appreciation of Thai baht against the dollar Y-o-Y, 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 Y-o-Y 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 U.S. dollar in FY '25. The Distribution business gross margins improved to 29.4% on an 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% Y-o-Y 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 Y-o-Y basis. Again, as mentioned earlier, had the Thai baht to U.S. dollar exchange rate in 4Q '25 remained at the levels comparable to 4Q '24, the EBITDA growth would have been in the mid-single-digit range Y-o-Y 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% Y-o-Y. 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 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 Y-o-Y based on our best estimates. 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, yes, there are certain changes. We have seen recovery in Myanmar, especially in distribution business over the last 6 months. There have been -- there will be some dip between quarter-to-quarter because of various reasons, distribution mix, branded product that we do and licenses that we have. So it changes a little bit, but it's been -- we've seen a growth. I mean, averagely, we have probably grown about 18%, 20% over the last years. That's a good sign. Pharma licenses are getting available. So pharmaceuticals, we can still start to import that mix 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 Vietnam -- sorry 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, and that's also on track. Vietnam manufacturing site has started, is already filing done, building and work has started. So we hope to complete that within 15 months. Indonesia plant is nearly ready. By June, we should be testing the new site. And hopefully, by the third quarter, we should be ready and operational, ready to go by taking batches and starting work in the expanded new facility with the new dosage form, softgel line, et cetera, that we are putting there. So that's also going as per plan. Myanmar, the land acquisition and the approvals is all under progress. And we are hoping within the next 3 months, if not earlier, to also sign up and start working in Myanmar as well. So that's the CapEx side, building capacity side. And not only that, as we 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. So there is no other way, I think, in many of the large markets where we have a place, but to have manufacturing capability. And for Mega, Myanmar, Vietnam, Thailand are anyway core markets and large-sized markets and Indonesia, it's something that we are trying to build upon and we are at -- it's called work in progress. So it's a hard job, but we are working on it. So that's the basic background. Southeast Asia still remains a very important part of our strategy in all these 5 markets, including Philippines, Cambodia. We are growing in spite of the Thai border conflict, but 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 growth 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. So I think we are seeing good branded product growth, both in the pharmaceutical, health care, 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, Loreze, Zirin, NU ENAT, et cetera. 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 pharmaceutical like products clinically proven for the right reasons and used specifically in various conditions, specific areas. So Mega remains very focused with our clinically proven made at GMP facilities like pharmaceuticals drug and focused on medicinal supplements. So 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 urology, dermatology, osteoporosis, et cetera, male health, women health, menopause, nutrition, cough and cold, pain. So we are focused on many of these areas and our pipeline is also focused there, new dosage form, better products than before, improved dosage form for adult, for children. So a lot of work is going on, and we are driving this further. As explained to you on our 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. And 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. Vietnam, a large part is our business, rest is agency business. So 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. So Myanmar is the biggest area, and we are hoping to see things get better over the years to come. So 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 a strong, stable, long-term branded business in both the categories. And we have a lot of pipeline, including GLP-1s, et cetera. We are also working on them. We have got licenses, deals signed. We have not announced it for multi-country deals or licensing semaglutide and all the other products also are in Mega's pipeline. So 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. So both from product launch. Countries-wise, I think we are focused in the countries where we are. We see a lot of opportunity in the region, we are Southeast Asia, Sub-Saharan Africa from one end to the other. And our 2 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. So these are our 4 focus areas where we will continue. Most of the growth coming from the 2 larger areas, Southeast Asia and Sub-Saharan Africa. And with the population, 600 million, 800 million people in the Sub-Saharan area and 600 million, 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 these markets. So that's where Mega's 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, et cetera, 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. So thank you so much, ladies and gentlemen. Over to you. I forgot to mention that we did double our 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? Doubling on profit before tax. On that basis, we are very, very close to what we had planned. So we have got there in the next 5-plus years. And dividend policy, we are maintaining. We are giving out THB 1.6. Last year, we also gave at an absolute value of 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. THB 2.7 billion plus. I mean we have got about $100 million, $120 million we are spending over the next -- that's part of the plan that we're going to spend over the next 4, 5 years. CapEx is about THB 2.7 billion Yes, that's -- sorry, that was some additional information.

Wasu, you can please go ahead with the question.

I'm Wasu from Maybank Securities. I have 2 questions. The first one is about the quarterly trend of the distribution revenue. In the fourth quarter, the distribution revenue dropped by 26% Q-on-Q. Could you please tell us the reasons?

So the distribution business revenue, we also report the adjusted number. So yes, the reported number might look a little different. But when we adjusted for the dual currency rate effect, on a Q-on-Q basis, the drop is much lower. The drop is around 3% to 4% on an adjusted basis. So there is a dual currency effect, which we have explained earlier. So on an adjusted basis, the drop is only around 3%.

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

Yes, from second to third big quarter. It also depends on availability of licenses. Fourth quarter election time in Myanmar. So licenses were a bit slowed down, government was building budgets, whatever they were doing. So a little bit slower down. I think some impact there a little bit. Also products came in third quarter when you have a lot of stocks, people do holding in Myanmar. When you have, you buy more. So there are a few plus/minus, but the total impact is only 3%, 4%. It's not a very huge impact. But if you look at an annualized basis, the second half really has a lot of growth compared to first half.

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

Yes. But 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 rush to buy. Was that the reason of the big quarter in the third quarter as well?

Well, that's an assumption we can make. But the thing is that we are not the only one. There are other people who also get licenses, some stocks 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 make up a large part of the business. So it does have an impact because a demand has shrunk, as you know, market size has gone, 30% market, not accessible. The earning are down. So all these things are impacting the overall market size, number one. Plus what we have availability. So when we have availability, then people buy. This has been the old strategy in Myanmar, you will buy and then you stop. So you can gain profit from it. But 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? But it so happened that, that was a quarter where the goods came -- license came in second quarter, goods arrived and there was a demand that is pent-up. So goods got sold. And second quarter, third -- last quarter, we also -- some licenses government was also tightening up because of elections. So there was a bit slowness in the licenses plus also demand because they were busy doing other things. People were busy in elections. So I think a couple of things happened. But generally, I think the general view is that the licenses availability for pharma, at least is a little bit improved. Even consumers are a little bit improved. So both these conditions are factual. That's what we are seeing unless something changes again next year. And with the changes happening, 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, and that's the view we have. But we'll keep you updated. You will see reality every quarter. But that's the view based on facts on the ground that we see and we read and we hear that is what's happening is happening.

And my next question is on the revenue guidance for this year. I'm not sure if you've mentioned it already. What's your target for the revenue growth this year?

Low, high single digits, I would say, 8% to 10%, 12% in that range. We are looking at -- I'm talking about branded business, most of it, including distribution also will grow 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 it could mean that in the double -- low single digits, revenue will grow in the high single digits, but the bottom line will grow in the low double digit.

Khun Narumon, you may go ahead, please.

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

How much, Francis, I don't know.

Normally, we don't give country-wise number, but Myanmar still constitutes the largest.

Largest.

Myanmar has a big [indiscernible].

Myanmar will still be the largest. At one time it was more than 80% in the old days, maybe still a large portion after it declined also, Myanmar still is a distribution country alone, stand-alone distribution while continuing to be the largest.

[Foreign Language] Next question. What is your view on the distribution business? What would be the strategy? Maybe we should talk like this year because we are waiting for your 5-year plan, right?

Our business strategy, as I said, it depends on Myanmar. We are -- our business strategy is very clear. In Vietnam, we are focused on our own brand and agency businesses largely. So whatever growth comes is 100% marketing and agency business. We have a few partners who we do full distribution business. 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. And there is some companies who have their own team and we do distribution for them. But that's not a very large part of the focus area. So 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. So you will not see a huge Maxcare. So it's largely Mega We Care. Let's put it that way. Cambodia, there is -- we have a very large branded business, very profitable, very successful, and we are still doing that as it is. But then we also have a distribution business, [indiscernible]. And we still do, and I think it's still going to grow, but it's a very small market anyway. I mean, Cambodia as compared to other countries, is a 12 million, 14 million people market. So relatively smaller, but we are still very strong in that area, but we can't expect huge growth in distribution in Cambodia. The only place you can see a turnaround is Myanmar, where we have very good partners, very good principles, things turn around, economy gets better, licenses get easier, especially 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. So you cannot expect that to become the way it was earlier planned to become $500 million, but it will grow. And cautiously it will grow, and we will have to watch and do these things. It's not something that you or me or anybody can predict. It a lot depends on the economy and the situation in the country. But we are there. We are strong. The good thing is Mega has great partners. We have good principles who are not left the country, who are still working in the country. They have team there. They are investing there. That's the beauty. So with that, with good partners and with a good team in the country, I think our business will carry on and will continue. If market dynamics change, it will grow. So that's the distribution guideline, but very difficult to pinpoint in advance that 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. So with that, whatever happens, will it get -- grow? Yes, in the next 5 years, it will grow. Even if it grows in Myanmar grows at 8%, 10% every year and can continue that growth in the next 5 years, so it will grow, driven by Myanmar and also driven by Cambodia. But the biggest growth in 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 are also -- we have a team separately doing our own brand, Mega We Care. So that's where lies our next growth phase for the next 5 years.

Okay. I got it. So what is the growth target for distributions for this year?

Already told you, madam, I just said growth target. Our overall target is anywhere between low -- high single digit for the whole company. In that distribution also will be around the same area. So distribution maybe 5% to 8%, but the branded business is where we focus on. Distribution depends on the environment. So -- and the larger part of Mega's profit also comes out of the branded business, right? So the impact on the bottom line and other things are not very, very significant. I mean it's there, but not significant. So we don't give a lot of guidance because it has a lot of factors, principal factor, country factor, country is largely Myanmar. So 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, so it should happen. And 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 of multiple countries.

So is it fair to say that the distribution has been the bottom -- I mean, 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, I think we have seen the bottom and we started to recover. For all of '25, we have recovered. If you look at relatively decline of 45%, 43% in '24, '25 has seen...

From quarter 3.

Quarter 3 onwards, right? Second half onwards, it has seen an improvement. 18%, 19%, you said over quarter 1 and quarter 2. The fair assumption, we are all making that based on facts on the ground. But again, this is -- it's a geopolitical factor. It's nothing to do with us and it's more -- our capabilities, our abilities are as much their in the country. So if the changes in economy and 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.

Okay. My last question on CapEx. I may have missed number, you may have talked 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, '26, '27, '28, we are planning to spend about 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. But it depends on at what stage the factory, the payments start to go, machinery starts to come in. So there is a time line. But over 3 years, it's THB 2.7 billion.

Khun Yuwanee, please go ahead.

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. What -- 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 less fighting happening around the area. The Army has taken control of a lot of areas that they have lost. There's a lot of news around that you can read, right? And you can see that on the ground that there is more life, more movement in the city, more cars if we go to [indiscernible], more walk around, more restaurants open. So generally, life is looking a little bit more, either they are used to it or it's improving or there's a sign of improvement. So with that happening and they have also called the doctors back to work, people who have gone on CPMA strike. A lot of these small, small things happening, availability of license is getting a little bit better, appointing a new President and things that they're trying to -- whatever the whole environment they are 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. So it's the general understanding that within the areas where they are operating, we are operating in, there's going to be an improvement. With that improvement happening and trade improving, [indiscernible] and all the other and even if minerals and things like that start to get exported out of Myanmar, the revenue stream improves. And if that improves, then there's more cash available. So 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, not only second -- third quarter improved because licenses improve, buying purchasing habits improve. The drop in the fourth quarter is very marginal, 3%, 4% as Francis said. This can happen in any between 2 quarters because you don't have the same products available in the third quarter and the fourth quarter sometimes. But 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 discrepancy. It's 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. But it's not always everything is available. So generally, you see a better situation in the market, buying behavior, pharmacies, shops, consumer outlets, there is more products available and buying behavior is improving. This is a general market feedback that we get from the market. So 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 not it shouldn't go backward.

Next question. Did you mention about your distribution sales going quarter-to-date? I'm not sure if I heard that correctly, your distribution sales?

Khun Yuwanee, the distribution business, which we are looking at on a reported basis is not the correct measure. You have to look at a normalized basis. Normalized basis Q-on-Q, we have declined only by 2.6%. And on Y-o-Y basis in fourth quarter, we have increased by 19%. So you should look at distribution numbers on a normalized basis, not on reported basis.

Okay. What about quarter-to-date, 2026, that's what I'm talking about. Is it going...

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

Yes. Exactly. Exactly.

[indiscernible] February and we are not reporting that I can't make that comment at the moment. But yes, we are still positive, and we'll continue. But as I 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 and the impact is not huge. So the real strength of Mega brand and the agency businesses that we do in other markets where we represent on a full agency basis, branded business is also what is driving our bottom line. So there is an impact, but the impact is not huge. So 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. So we believe it should get better. And the next year in the pharma business, especially should look better in Myanmar from a distribution point of view as well as our branded business. That is where we are [indiscernible].

Khun [indiscernible], please go ahead.

So just another question in the Myanmar. So 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 at Chart. But the good thing is that Chart is now much more lower than it used to be last year at THB 4,500 to THB 3,200, right? Around THB 4,000.

Around THB 4,000. It went to around THB 5,500.

Come down. actually, affordability is better now. That's one fact. Second is anywhere Myanmar being a generic market, the prices are very, very low. So there's a lot of -- always has been a very, very low price market from India. It's only 90% of the market is generic market, cheap, Indian, Bangladeshi, other companies. But within that market also, any market, even in Africa, if you are 100 million population, 5 million, 10 million people still have the money to pay. If you go to Bumrungrad and you walk into BGI, 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. So there is a group of people, some population of 10%, 5% who have the ability to pay for a certain type of product, which they trust. But that is also there. So we have both. And our product range extends from the low end to the high end. We have both, right? We have the high end of Serbia and the lower end of other companies also who are very competitive and high quality. So we are playing in all the categories. And I think we are not the lowest and we are not going for the 90% or 50 million people population in Myanmar, right? We don't -- they are not all our customers anyway and the kind of business we do. We are across the spectrum that we are targeting quality product, 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.

And let's moving on to Indonesia. Could you provide an update on the Indonesia regarding the strategic growth, include development of the product innovation, the drugs 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. And we have already launched and seen about 30%, 37% growth in unit sales and unit quantities produced in the factory over the last year. And we are on target, as we had mentioned, that we want to get to by 2030 to $150 million. And 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, hospital government buying pharmacies. And there's another 20% of our business, which is consumer health, which is vitamin, mineral, supplement her and over-the-counter drugs also we have launched. So it's going to be a 20%, 70-30 kind of mix that the way it looks like. And we are progressing in that direction with the range of products that we have selected and registered in the country. And we are -- we have a pipeline, local development going on, which we develop locally, register locally and import first and then register locally. So there's a 2 direction there because we have a pharma company there, we can also import and register Indonesia. Some of the products which are not made locally, which are allowed for import. And then within 5 years, you take locally. So that's our strategy, and we are working in that direction to get to $50 million by 2030.

And could you recap for the target growth in Indonesia for this year?

This year growth, again, it's in the same range. I mean, average overall, we are talking about 8% to 12%, it's a branded business. So it will be there. If Indonesia is slightly higher because we have a lot of pipeline is new added there, some other will be lower. So average is I said 8% to 12%. Indonesia may be a little bit higher, 10%, 11%, 12% other countries, somebody may be -- some of the developed markets slightly. It's not an exact number, but it's in that range. Every country has our own target. I don't have every country's target with me at the moment. But in that range, I think we are targeting to get between minimum of 8%, maximum upper side of about 10%, 11%, 12% in terms of revenue growth for the branded business, Mega We Care.

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.