Just to give you the initial flavor, I'm just gonna begin with saying that the first half has been good, compared to what we have done over the last two years. In spite of COVID being at the peak, we have seen some good traction especially in two markets. Thailand and Vietnam have done well. Overall, our branded business across the world we are in has done reasonably well. All brands established, and not only just COVID products. I'm sure you'll have these questions, we'll answer them as we go along. Is it only COVID? No, it's not only COVID. The hospitals are open now and people are there. There's more traffic in the hospitals. Even our drug business is seeing improvements and traction in most of our markets.
A lot of new products that are in the pipeline are going along. All the things that we are doing hold promise, and there are issues in spite of the headwinds on fuel cost, energy cost. There have been price increases in a lot of materials. In spite of all that, with improved efficiency and maybe management of cost, we are still performing well. That's the overall guidance. How are we going to do in the remaining half? We still hope to see that we'll continue not growing at the rate we grew in the first half, but overall, as we guided, we should end up with something close to last year or plus or minus 5%-8%.
I mean, that's what we had guided to seeing plus minus between single digit, not high, but in the single digit level growths in bottom line and top line. We are still hoping that will happen in the next half. Are there headwinds? Some countries have some issues. Ukraine is one, but we are still doing business and our business still continues to do fine. We don't expect to see a lot of growth, but we still expect to see business going on. Sri Lanka is one of the problem areas, but in spite of that, we have stocks, and I think money, LCs are being opened, goods are going, but it won't see what it used to be years before. We may have to wait for a year or two for it to return to normal.
In spite of all that, we still have products going in, and we are hoping to see that continue over the next 6-12 months. Myanmar is a different story. There's a long discussion on that. We will talk about it a little bit more. Before I talk a lot more about the past and the future. Future, we remain very focused that by 2025, as we have promised to double our bottom line compared to our 2019 results. Our 2019 results were about THB 1.2 billion. We had projected that by 2025 we should reach THB 2.4 billion-THB 2.5 billion. I think we are on course.
We still remain committed that THB 2.5 billion is very, very likely it'll happen by 2025 with all the strategies we have in place, all the work we are doing. It's all going in the right direction. I think we will achieve that. The exceptional growth in the period of COVID is an exception. In spite of that, it's good sign that we are maintaining that for the last two years. After COVID, general consumer sentiment around the world is that a lot of these products have actually come down, but they have still reached a new high. The base has increased. That's the good thing is a lot of products, the base number of users has gone up. The general wellness consumption has gone up.
A lot of our products which are registered as medicines, C, D, not just the fun products or the, you know, products for quick business during COVID, not those, but established brands are doing well. I think we are in good position with the right products, right categories, right countries we are in. Looking at all that, seeing our history and seeing our brands, we are, again, as I said, very confident to deliver on our long-term growth. Short-term, second half can be a little bit slower. If COVID starts to reduce and die down, there'll be some impact. The good thing is all the other products still continue to do well and will continue to grow.
We remain confident that we should be able to deliver that single-digit growth in the second half and overall for the year 2022. I will stop here for the moment. Francis will give you the background and the details of the financial statement for the half year and the quarter, and then we'll open up to Q&A. Francis, over to you.
Thank you, sir. Good afternoon, everyone. On behalf of Mega Lifesciences, I will be taking you through Mega Lifesciences' H1 2022 performance and quarter two 2022 performance. In H1 2022, overall revenue was THB 7.75 billion, reflecting a growth of 12.9% on YOY basis. Brands grew by 23.7%. All regions performed well. Southeast Asia, which constitutes 79.3% of the branded business, grew by 25.8%, while Africa grew by 23.6%. Distribution business grew by 3.5% on YOY basis. Overall, MEGA We care segment contributed to 51% of the total revenue, as against 46.6% in H1 2021, while Maxxcare contributed to 47% of the total revenue, as against 51.3% in H1 2021.
OEM business remains steady at 2%. Overall gross profits improved to 43.7% of the operating revenue in H1 2022, as compared to 40.2% in H1 2021. The growth primarily driven by the high growth in branded business, which was causing a favorable revenue mix and better segmental gross margins. MEGA We care gross margins were 68% in H1 2022 as against 65.6% in H1 2021. Maxxcare gross margins remained steady at 17.5% in H1 2022 as against 17.2% in H1 2021. Overall net margin of Maxxcare business remained steady at 48.7%. SG&A expenses stood at 26.7% of the operating revenue for H1 2022, similar to H1 2021, where the SG&A expenses stood at 26.1%.
Reported net profits were THB 1.182 billion, reflecting a growth of 41.5% in H1 2022. Adjusted net profits were THB 1.191 billion, reflecting a growth of 40% in H1 2022. Adjustments to net profits are arising out of currency gains and losses from new businesses which are investments in future, and material non-recurring items of income and expenses. Overall operating cash flows were THB 826 million, representing 70% of the net profits. We continue to be a net cash company with a very strong balance sheet. On the CapEx front, we have spent THB 187 billion towards CapEx in H1 2022, with majority of the spending, THB 135 million spent towards consolidation of manufacturing operations and capacity expansion in Thailand.
On the new product side, over and above the 16 new unique products which we had launched in 2021, we plan to launch 26 new unique products in FY 2022. Twelve products in the nutraceutical category and 14 products in the prescription products category. On the second quarter 2022 performance, overall revenue was THB 3.93 billion in second quarter 2022, reflecting a growth of 9.3% on YoY basis. Brands grew by 16%. The distribution business grew by 4.6% on YoY basis. On the gross profits overall in second quarter 2022, gross profits improved to 42.6% of the operating revenue as compared to 41.9% in second quarter 2021. MEGA We care gross margins improved to 66.9% as against 66.8% in second quarter 2021.
Maxxcare gross margins were 16.3% as against 17.7% in quarter two, 2021. Overall SG&A expenses stood at 27.6% of the operating revenue as compared to 26.5% of the operating revenue in quarter 2, 2021. Reported net profits were THB 569 million, reflecting a growth of 13.3% in quarter 2, 2022. Adjusted net profits were THB 557 million, reflecting a growth of 15.2% in second quarter 2022. Going forward, apart from the 26 new products which we plan to launch in 2022, we also have 186 new products which are under development and which will be launched in the years to come.
On the CapEx side, over and above the routine maintenance CapEx of $2 million-$3 million a year, we are also expected to spend THB 506 million in the next two years, out of which THB 295 million will be spent towards consolidation of manufacturing operations and capacity expansion in Thailand, and THB 46 million will be spent towards ESG. We also plan to spend THB 165 million towards adding new dosage form, warehouse, and plant upgradation in our newly acquired Indonesian manufacturing plant. With this, I open the forum for Q&A, and we request you to give your name and the name of the institution that you represent. Thank you.
Thank you. Yes, please. I think, Francis has covered most of the things I will. I think we have also talked about our ESG in the last session, explained what we are doing, and as an initiative we have started for real purposes. Mega has been doing it for a long time. We use solar, we do a lot of variable motors, LED lighting for a long time. We are there in many, many ways. We use single-use plastic. Our carbon footprint is very, very low anywhere around the world. We do everything possible to run a good, clean, governed plant. We have a very high female- to- male ratio. We have heads in businesses across who are heading not just in common workmen places. We have a very diverse and a very open environment in terms of governance.
We've been doing this for 35 years with very little legal or issues with any government. I mean, there are things that will happen which are beyond our control or things we didn't know, but not by design. As a company we've been governed and have made a practice of living that life. We are doing that. CapEx, you know already. Indonesia is one area we are building a softgel line. We have to start the design and the construction work. That's in progress. Other than that, there is no major initiative except the factory that we're building in Thailand, which should be ready by the end of the year, the new section, and we can move the old plant there.
No major expansion, but new dosage forms in liquids and sachets and all that we are doing. Some expansion in facility and capacity in Australia where we do a lot of our sachet and probiotic products. That's largely it. Most of the investments are in new products, new dosage forms, and the countries where we are investing in building a stronger MEGA We care and the We care brand.
To our wellness MEGA We care facilities, where we do a lot of work in rehabilitation, disease management, lifestyle management, and then our digital work that we are doing, not only to monetize, but to reach our patients and doctors through Health@Home. They're all connected into one ecosystem where we are doing things in many markets on diabetes, mother and child programs, and connecting the consumer with the doctor and with the advisory services on health. All this work is going on and that's how we are planning to build a strong MEGA We care brand which is sustainable and can continue to deliver growth. In spite of the hiccups in the world market, we believe we are on the right track, and given some time, with all these things happening, we should achieve our goals of that THB 2.5 billion or more by 2025.
I have nothing more to add. I think, I'm gonna leave the floor now to questions. I could preempt some of them and explain some of them. I'm sure those questions will come again. Better you ask, and we shall answer. All right. Yeah.
Thank you, Khun Vivek. This is Yuani from Maybank. I have a few questions. The first is on the-
Yes, please.
Second quarter. We saw that the gross margin declined Q-on-Q for both branded and distribution. Do you have any color on that or any explanation why is that?
Gross margin?
Declined-
I think.
Q-on-Q.
Yeah. See, if you see at the branded business, gross margins are more or less stable, you know. I think from 68-something, it has dropped down to 67%. We have always guided that, you know, this is not a sustainable level of gross margins for branded business. If you look at us historically, our gross margins have been in the 63%-65% range. We expect our gross margins to settle down at that range as we go along. What we are seeing this year is the high capacity utilization is leading to these high gross margins. We feel that with cost inflation, everything going up slowly, our gross margins will settle down to that 65%, 63% range. Our guidance on this remains the same, that we have been saying that before.
On the distribution side, I think there has been a change in product mix during this quarter, but fundamentally, the gross margins of 17.75%, I think by end of the year we will still come to that. It's quarter- to- quarter, you know, based on changes in products and, you know, product mix, this can change. We don't expect nothing has changed fundamentally. You can see that despite all the challenges in Myanmar, our distribution business is still flat as we had guided. I mean, we had actually guided a negative growth, but that is still not happened. We still were able to maintain the top line and the profitability as well. We expect the gross margins to stabilize towards historical levels or at least towards last year's levels by end of the year. Thank you.
By stabilizing, you mean quarter-on-quarter, third quarter will decline or do you think it will?
I think we should come back to. Last year was 17 point. We'll come back to that. I think that is the indication. Quarter one this year was also 17.5. 18. I think around that 17.5 mark towards end of the year. That's what we expect. Thanks.
For branded as well, 66%?
branded, I think, probably 66% around there.
Okay, thank you.
The next quarter, yeah. Thanks.
My next question is about your guidance. You think it can grow 5%-8%. If you break down into branded and distribution, what would be branded growth and what would be distribution growth?
We don't really break it down into, you know, that many details, but you can see the trends. Brand is still growing at.
Branded grew in the first half by how much? 23.7%.
Percent, and the distribution is flat.
3.5, right?
Yeah. If the trends continue, we are still looking at a similar growth rate toward end of the year. That's what we are guiding.
Overall, we are saying 8%-9%. Brand will go down and the distribution may be flat.
Maintain double digits and distribution will be, yeah.
Overall, by the end of the year to achieve that single-digit, brand will probably also come down.
Okay.
That's our view that the brand will probably come down. Overall, we are saying 8%-10%, 5%-10%. At the moment we are delivering overall growth of 12.9%, 13%, right? There will be a decline in both. Distribution is being largely affected by Myanmar, especially consumer products and ability to import. Pharma may not have that big a decline, but the consumer products can have, so volume-wise. I think the branded business should grow, but will not be at the same rates in the first half, and the second half will be a little lower. That's why our guidance is that we can be anywhere between 5%-10%.
If things look good second half, because a lot of the other products, as I said, the hospitals are opened up. Non-COVID products are also doing well. For allergy, Loratadine, Gofen, all of them are showing growth. It's not just that only vitamin C is doing well and, the other products in most of our markets are also doing well. In some markets, the COVID products are still good, in Thailand and Vietnam. Other than that is non-COVID. Largely, it's non-COVID business is also doing well. We will see some traction, some things changing in the second half, and that's the view we have. That's the view we also see in most markets as well. The good thing is these are old- time established brands. They are there for a long time.
They don't drop away to the bottom because they already had a strong base, and now they have a new base. There are many good signs to it. Having said that, we are still hoping that we'll grow overall and we'll achieve this single- digit growth over last year also, right?
Thank you. On the branded, do you see the vitamin sales went up in the second quarter as well? I mean, you have medicine and I put it as vitamins. Quarter-on-quarter it was flat. Did you see the change in the mix in that branded segment? What's happening to the vitamins post-COVID? What do you think?
We had growth of vitamins also in the second quarter. It's not that we didn't grow. We grew second quarter also. Sometimes, you know, when you look quarter to quarter, it's not a very good number because the last year quarter, last year second quarter may have been a very high sales. This year second quarter will look bad against last year's second quarter. That's how you compare, right? Last year second quarter was the peak of COVID, or there was peak of stocking up. I think it's not a very good measure to look at quarter compared to last year's quarter. Quarter compared to the first quarter this year. Again, the consumption of many products in the first quarter was higher because of COVID. The second quarter it's a little bit down.
Overall, to achieve 27%, 23.7% growth, it has to be across the board.
Okay.
It's been everything, including drugs have grown. When we say vitamins, we have consumer health. We have consumer health, we have probiotics, we have medical nutrition, we have herbal medicine, we have pure vitamins. They are not all COVID- related products. We also have over-the-counter drugs, Gofen and Loratadine, Loreze, ZIRIN, all this. I think all of them have shown growth, but the vitamin part and some of our cold cough medicine, Eugica, has also grown. That's also shown growth. When we see growth, yeah, we are growing over the whole half. I mean, I don't know about just quarter to quarter. Between first quarter, second quarter is lower growth.
Yeah. Overall branded business is still higher.
Yeah. Still grow, but compared to first quarter. Compared to first quarter, it is still higher.
Okay. My last question is on Myanmar. I saw that they have a new kind of capital control. I'm not exactly sure what it means, but the 65% capital control in regards to the FX recently.
Yeah. Myanmar has a lot of things going on. Yeah, you're right. I mean, they have a lot of things going on. This is a new one. They have allowed that you can import and export and buy dollar. Like in the old days, about 20 years ago when we are doing business, you can work with exporters, right? Exporters export things, and you can work with them and send money out. That gives you the freedom to work with. The import licenses anyway for pharmaceuticals are not banned, and you can still get import licenses, part one. Part two, exporters who export. You can buy from them and do. But capital control mean that 65% of it is not available. 35% of the export dollars are available for imports, right?
There is just a second thing. The third thing is you can also buy dollars in the open market. For pharmaceutical companies, that's a good thing. In the old days, I mean, you can buy through these exporters. All the export companies who are exporting goods, we can buy 35% of their export proceeds are available to us to buy for whatever we are importing. That's the capital control that's coming. 65% of the money coming in cannot be taken by the.
Actually, it's better because before, 100% had to be converted to local currency. Now they're allowing 35% to be held as U.S. dollar. It's actually a better improvement. Also, the detail, our response to what is happening in Myanmar, we have filed with the stock exchange. You can have a look at that too.
Okay, thank you. Last question. How does third quarter compare to second quarter? What's your take?
Quarter, I think. Very difficult.
Generally, historically, fourth quarter is the biggest quarter, but last year it was not the case. Because of COVID, we had a very, very big second quarter.
Third quarter was big. Fourth quarter was not as big compared to. Also in our plan over the years, the pushing and the last quarter has gone away. You don't see the fourth quarter as a very big quarter always. Third quarter was big. Fourth quarter was also good, not that. Not the biggest. Generally, fourth quarter is always the biggest. Second was the slowest. Historically, because of holidays and Songkran and all, second used to be the lowest.
Quarter two was the highest quarter two in the history of the company.
I would say it's a good quarter. Good. Thank you.
Quarter two, yeah.
Quarter three, she's saying. How do you see quarter three?
She said quarter one to quarter two.
Quarter three. How do you see quarter three?
Projections.
Coming up. Sorry, I'm not involved.
I think we are still hoping that most of our countries with the branded business that we are doing. As we're looking at quarter, we are seeing the overall business. We are not monitoring ourselves quarter-wise. I've said that many times. We are doing the right things, and we believe by what we are doing, our business will grow, and we'll have the strongest brand that you can think of in the markets we are in. Overall, we should be able to close our branded business in that 5%-10% growth rate to the end of the year. That's the plan, and that looks very much feasible. We are clocking in the first half 13% overall growth, branded business, 27% growth.
We should be able to hit and achieve that end outcome.
Yes. Thank you. That's it from me.
Yeah, really. It has to. To achieve that 8%-10%, we will decline overall.
Hello. Hi, can you hear me?
Yes, please.
Hi, this is Thanaporn from CGS-CIMB. I just 2 questions.
Yes.
Earlier in the call, you have mentioned that some of the material costs have gone up. May I know what kind of ingredient is it that went up? What is your pricing strategy when you see some of the material costs have increased?
I mean, fuel is up, common materials are up, which has an impact on common production cost, which is definite. As you see, our production has also gone up. Because of production going up, the allocation of our gross margins have improved, right? When our capacity utilization improves, our gross margins improve. In effect, we are. The other thing is we are also benefiting a little bit from the exchange rate coming in here. As a company overall, we don't have to pass on a lot of increase in cost. Freight has also gone up. Freight is generally absorbed when countries import, and we transfer it to the consumer, generally additional cost. We don't see a 2%-2.5% increase in cost overall. In many cases, wherever prices can be changed and passed on, we do.
Wherever we see overall on a finished product basis, probably the impact is not more than 1.5%, I think. 1.5% at the moment. Except there are if you look at some, let's say out of 100 products, 5 products have an exceptional increase. It's anywhere between 1.5%- 3%, 4% at the end consumer level. Some of them is a strategic decision, right? A strategic decision, do we want to keep the volumes or do we want to increase prices or are we also recovering that by adjusting for exchange rates in the countries? Some we are seeing correct price in the country also for exchange rate and some we are gaining here because our material cost is what, 30% in the range.
20%-something, 20%-30% total if we take freight. At the other 70% is value addition in local currencies, right? I think we are also benefiting from that as well to some extent. We look at the overall and then decide. At the moment, we're still doing well and benefiting from all these, all the situations that we have not transferred. We monitor prices and then discuss with countries and look at pricing as a strategy, and then correct prices wherever we can. In most cases, in the old days, it is direct, we used to change prices in the market.
Okay.
In some cases, we look, we also decide now on a case-by-case basis.
Okay. Do you see your competitors increasing the prices or everybody is kind of maintaining the same price?
In countries where exchange rate has gone up, most people correct prices. We are seeing that every quarter, every month when people say exchange rate, they increase prices. We also see many of them where cost of good has gone up, they have increased prices. Yes. There is a shortage of products in some cases, material short. We were lucky we had stocks, and we had no shortages. I mean, most of our supply chain was very good except a few issues, I think across the whole year, last one and a half year. Having our own manufacturing, having stocks on the ground, our supply chain and stock situation were reasonably very good, I would say.
Okay.
We are seeing some changes in the prices, especially if people are fully imported. Their cost in Thailand will go up if they import from America or Australia. Dollar, just the exchange rate and then the cost of material both. We are seeing changes happening in the market, but we are not taking any advantage. We are keeping our prices as far as possible stable. Other than where there's a huge currency impact. Otherwise, our prices, I think we have not changed this heavily, and we have not changed our prices, transfer prices. In the countries, correction may have been made for exchange rate.
Okay. Earlier you also said that you saw some traction from Thailand and Vietnam. Is there any particular reason why these two countries are stronger than the others?
I said because Thailand and Vietnam both have had a resurgence of COVID.
Oh, right.
Because of these additional cases of COVID in 2022, most other countries have not had so much, and probably people have not really continued the usage of some of the vitamins that they were worried about last year, right? In these two countries, there have been some resurgence, and there is still a consumption going on in certain areas, cold, cough, etc . There is some part also here reflected by pure COVID, which we continue to remain. As I told you last time also, some COVID business has to drop because that is based on consumer mindset behavior that take it now, protect yourself. The other is some becoming long-term behavior for wellness, staying healthy. That we are also seeing that we have got a new high.
When vitamin C went from 100 to 200, it didn't come back to 100. It probably came down back to 150. In many cases, we have got a new base because people who are taking it not regularly, who are buying it only for a reason, have become more regular now, and new users have come in also. That's one thing that is also helping continuity of business. Otherwise, you would have seen what went up 40% should have come down 40% in the last year as well. It didn't happen. There's a strong branded business. Then the other legs, the drug leg, the over-the-counter products, so all of them also are stable, right?
Correct.
There's not only one product where this shoots up, that comes down. The impact of that is only on that proportion. Overall, I think that it's a very stable business. There is growth, but the exceptional growth will come down. That is what we have been telling you, that don't expect to see exceptional growth all the time. It's going to be a new level, and the overall business is growing. All categories are growing.
If you don't mind me asking the last question, how much of your sales can you attribute to COVID? What type of products? Which of your products do consumers consume more when there is a COVID pandemic going around?
There is. I mean, I don't know how we quantify exactly how many, but there's a range of product which I think is very directed. People believe in vitamin C, vitamin D, Zinc, curcumin, and some other areas like cold, cough, mouth spray that we have, which people take them more regularly if they have COVID. If you have COVID, you'll probably use a lozenge and a mouth spray and a vitamin C and a vitamin D. Some of these things you take regularly during COVID times. It becomes a part of your package for a week. You know, 10 days while you're recovering, you're being recommended to take it.
We have these 7, 8, 9 products in that group which we think have an impact when COVID goes up. At the same time, those products are also regularly consumed for other reasons. We had a base which was big enough, and now it's also gone up because of COVID. That part, some of it will come down as people don't take it just during the time they have COVID. There is long COVID. People are experiencing cough and cold for months after they have COVID, so they are continuing to have it. There are a lot of other things that we are seeing happening with the product. Immunity building. Vitamin D has become a very regular part of our regular usage because of the benefits of vitamin D in terms of immunity, in terms of di.
A lot of other diseases, bones, joint health. I think the knowledge of all these products have also grown, and they're also being consumed more regularly compared to what we had before. Number of users have gone up. Regular users have gone up. Regularity, more of continuous use. New users have come in. We had old users who were eating. We have got new users, and we have got people who were not using it regularly, have become more regular. I think these are the things that we are seeing. As we go along, a lot of it is also based on data and analysis by research companies, and we are seeing some trends. We'll know more in the next six months.
The outlook, the size is very good because we have a very spread- out base. It's not only 10 products, right? We have 170-180 products. We have a huge drug pipeline, which is purely pharmaceutical, nothing to do with COVID. We are not doing molnupiravir, favipiravir or remdesivir. We don't have. We are doing only pure drugs. I think that's also growing. All these are very good strong legs to live on.
Thank you. That's all from me.
We have a question on the chat box. I'll just read it out, sir. Can you help to talk a bit more on the Myanmar issue? How Mega manages the risk. Is there any change in strategy or operational procedure to continue doing business there as normal?
There's a report that has been put up in the website. I think that on Myanmar situation, we wrote a document and made it available on the website. Myanmar situation is difficult for everybody. We all know that. Mega has been in this country for the last 25 years, sir, as I started. We started in about 1993. Today is 2023, so, sir, it's nearly 30 years. We have gone through this before. At the moment, the finding of dollars is to do with export money coming in, and pharmaceuticals is not on the top of the list. They also. Pharmaceuticals generally are allowed to be imported, so we will still continue to import and sell pharmaceuticals. Pharmaceuticals contribute to more than 80% of our, what do you call? Profitability and bottom line.
We are confident that we will. We are there. Our structure remains in place. We still deliver. There are only some parts of the country where we cannot go to, so which we are not going. Other than that, our delivery, our storage, our import services continue to work, and products are made available in the market. The first six months are also shown that our business continues to carry on. We have changed no position. Yes, how we manage, we are more careful, we stock on the ground, and we make sure we send money out. All these things we are doing. We're making sure we are very careful in how we operate in the country. Other than that, I think there's no change. Our commitment to Myanmar remains as strong as it was.
I can assure you all the partners who we represent also are all there. No, nobody has left. All our pharmaceutical partners are still in the country, and they're still operating in the country along with us and are ready to continue doing business in Myanmar. Because we also represent companies who are in the pharma business there.
Any more questions?
Hello.
Hello. Hi. Can I ask another question on Maxxcare? Since a lot has happened in Myanmar, and I know you can manage the risk in the country, but so far, what have your customer response been? I understand that most of your customers are MNCs, and what is the typical response from them?
In the pharma business we don't have many MNCs, we have a few, and they are with us. They're in the country for the last 30 years. They are still there, still operating and still continuing to do business. No change. All the other branded generic, what we call branded generic companies are still very bullish. They still have their teams on the ground. No change. The consumer companies are still operating. All of them are operating. They still continue to do business. Nobody, I hear, has left. They are still operating in the market, the ones we work with. They are discussing on ways how to.
A lot of them have operation in Thailand and the Thailand land route is allowed for trade, so they're all working on ways to do trade through Thailand land route as well. I think we have partners who are committed to Myanmar. We have not yet had anybody who has said we are leaving the country. Not yet. At least not in our portfolio. I don't know. Unless something has happened in a day or two I don't know about. Have you heard anybody who's given us notice to leave? No. We have not had any of our clients, both in the consumer and pharma, who have decided to quit Myanmar.
There's another question which says, with your expertise and experience, any chance to win additional principals?
Yeah, that's a good thing that we are staying there, but I think the key at the moment is to keep what we have, ensure the supplies are regular. We cover most of the areas in the country. If we can do well and grow what we have, that is the one strongest thing we can do in this environment to ensure supplies, availability, consistency on our product, maintaining prices, etc . I think that's the first part. Second, I'm sure there are many partners. We are also looking at things we can do in Myanmar more, not less now. We have some ideas we are evaluating. Principals are. Some of them are also looking for partners who are trying to look for. We are also discussing, but these are times when we have to really understand and evaluate.
As you said, you're right, there may be opportunities that may happen if they come our way. They are right. We are definitely there, we are talking, and we are looking at all these things as they come our way. Yes.
There are no more questions. If there are no more questions, then we would like to close this call. We'll wait for another two minutes. Close?
Yeah. All right. Ladies and gentlemen, investors, all our partners who have joined us for this call, I wish to thank you so much for your understanding, your time you take, and hope we continue to deliver on your promise. We are doing our best, we promise you.
One's hand is-
There's one. Is that Andrew?
It is. Hi. Sorry. Yes. Can I ask a very quick question?
Sure.
You've just mentioned in the past that the weakness in the Thai baht has helped you. Can you just sort of provide a bit more clarity in terms of how it helps and what the magnitude of it is in terms of your results at the moment?
Thomas.
I think, see, on average, we feel 6%-8% on revenue on top- line impact. On the bottom line, 3% or thereabout. That's our estimate.
Sorry. 6%-8% on revenue and bottom line.
On the revenue and bottom line, 3%-4% on the bottom line. Yeah.
Okay.
Thank you.
Great. Thank you.
Yep. If there are no more questions, I want to thank you all of you again. Till we meet again next quarter, we hope things will continue, and we continue to develop and grow our business in the right direction. We are not quarter-focused, as we keep telling you. We are building brands in many countries. We have done that over the last 25 years in Thailand, Asia, and now we are also doing the same thing in Sub-Saharan Africa, some parts of Latin America. Things are good. I can assure you that our brands are very strong wherever we are. You'll be happy that Mega Brands are well-known and respected for what we do in each market. And we are continuing to do that and build a strong long-term sustainable company that will live and grow beyond us. Once again, thank you very much.
Till we meet again. Thank you.
Thank you.