In today’s briefing:
- Muji 500: The Missing Key to Plans for 2,000 Stores
- Dr. Reddy’s Laboratories (DRRD IN): New Launch Aided Q2 Result; Rich Pipeline Lends Visibility
- Doordash 3Q22: Is DASH the COVID Winner?
Muji 500: The Missing Key to Plans for 2,000 Stores
- Muji has been trying to both reduce prices and consumer perception of its price positioning in the past few years, both at home and abroad.
- This has been hard but a new ¥500 chain will make it clear that Muji is shifting positioning.
- Muji will now even compete with discount and fixed price chains across food, home and clothing and the new price format will be much better suited to markets like China.
Dr. Reddy’s Laboratories (DRRD IN): New Launch Aided Q2 Result; Rich Pipeline Lends Visibility
- Dr. Reddy’s Laboratories (DRRD IN) reported strong Q2FY23 results, with revenue growing 9% y/y, mainly driven by North America business due to launch of gRevlimid in the US market.
- GRevlimid is not a one-off opportunity and will contribute meaningfully over the next few quarters as well. Price erosion in the base business continues to be within normal range.
- Adjusted for the covid product sales during Q2 FY22, and the brand divestment income in Q1 FY23, Indian business has grown in mid-teens year-over-year and mid-single digit sequentially.
Doordash 3Q22: Is DASH the COVID Winner?
- Strong growth continues….GOV grew 30%, 2% ahead of consensus..no macro headwinds.
- New “disclosures” imply the core business is more profitable then presumed, rationalizing management’s investments in new businesses.
- Beat and Raise…one of the few online platforms to do this in the current environment…in a business (food delivery) that most didn’t think was habitual LT.
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