India’s MedPlus Health posts higher Q2 profit as retail revenue rises

Oct 27 (Reuters) – Indian pharmacy chain MedPlus Health Services reported a slight increase in second-quarter profit on Tuesday, helped by higher demand at its retail unit and store network expansion.

Here are some more details:

• The company reported a consolidated net profit of 560.8 million rupees ($5.89 million) for the three months ended September 30, compared with 555.01 million rupees in the year-ago period

• Revenue rose 21% to 20.37 billion rupees, broadly in line with Nuvama analysts’ expectations of about 20% growth

• MedPlus, which competes with unlisted peers such as Tata 1mg, Apollo Pharmacy and Reliance Retail’s Netmeds, plans to open 800 new stores this financial year

• The company added a net 166 stores during the quarter

• India’s pharmacy retailers have seen steady demand for chronic therapies and the growing penetration of organized drug retail

• Companies are also seeing increased adoption of diabetes and obesity treatments, while focusing on private-label products to support margins

($1 = 95.1350 Indian rupees)

(Reporting by Puyaan Singh and Prerna Bedi in Bengaluru; Editing by Jochelle Mendonca and Shinjini Ganguli)