The $10-15m investment was (I believe) first raised in the 1H24 investor presentation (29/02/2024) and yes not related to Charac, but there was a mention of AI (slide 16). The investment is to align the businesses globally, modernise the tech stack, AI and the rest is probably around internal tools (perhaps external) to drive efficiency.
THRiV I believe is a digital way that MDR has to allow Pharma companies to reach patients (I suspect that MDR acts as an advertising agent and the switch from previous years is that it is more digital in nature which helps margins)
In terms of future:
- ANZ business can do even more in FY25 as some of the initiatives roll out (so things like UTI, fees on pharmacy consults etc)...so ~$7m revenues, $6m gross profit which means ~20% growth there which is ~$24m in gross profit
- US business if they can even do 10% increase with an improvement in margin to ~58% then you get ~$62m in gross profit
That is a gross profit of ~$86m and cost run rate of ~$72m which means a decent profit before tax.....the unknown is whether that investment of $10-15m is on top of this (the announcement today seems to indicate they have started and the 4C does not point to any uptick in expenses over 2H so perhaps partlt funded through the savings.....if so pretty impressive)
The $10-15m investment was (I believe) first raised in the 1H24...
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