Raia Drogasil S.a. · BMFBOVESPA:RADL3
Raia Drogasil — Q2 2016 Earnings Presentation
16 slides from Raia Drogasil's earnings presentation, Jul 29, 2016
Slide 1: Earnings Presentation – 2Q16
Earnings Presentation – 2Q16 July 29th, 2016
Slide 2: Disclaimer
Disclaimer This presentation contains statements that are forward-looking within the meaning of Section 27A of the Securities Act of 1933 (the “Securities Act”) and Section 21E of the Exchange Act of 1934. Such forward-looking statements are only predictions and are not guarantees of future performa
Slide 3: Consolidated Highlights
Consolidated Highlights Drugstores: 1,330 stores in operation (58 openings and two closures) Gross Revenue: R$ 2.9 billion, 26.1% of growth (14.5% retail same-store sales growth) Gross Margin: 31.6% of gross revenue, a 1.3 percentage point margin increase EBITDA: R$ 304.8 million, a 10.4% ma
Slide 4: We opened 58 stores in the 2Q16, 97 stores YTD and 196 stores in the LTM
We opened 58 stores in the 2Q16, 97 stores YTD and 196 stores in the LTM. Revising guidance to 200 in both 2016 and 2017. Maturing stores represent 33.9% of the base, with 14.8% in year 1. Store Count* Age Structure of Store Portfolio MATURE YEAR 3 YEAR 2 YEAR 1 1,330 12.3% 12.2% 12.7% 13.8% 14.8% 1
Slide 5: We gained market share in all regions and reached 11.5% of comparable market share
We gained market share in all regions and reached 11.5% of comparable market share in Brazil, a 1.6 percentage point increase versus the previous year. Geographic Presence - Retail Market Share*** RN: 7 stores PB: 9 stores PE: 20 stores AL: 6 stores SE: 9 stores DF: 52 stores BA: 28 stores MT: 10 st
Slide 6: Gross revenues grew by 26.1% (24.5% for retail and 113.4% for 4Bio)
Gross revenues grew by 26.1% (24.5% for retail and 113.4% for 4Bio). HPC was the highlight (+ 0. 2 p.p. in the sales mix), while Generics was penalized by price reduction in SP (- 0.2 p.p.). Consolidated Gross Revenue Retail Sales Mix 2016 vs 2015 (%) Services 0.1% 0.1% 0.1% 0.1% 0.1% Raia Drogasil
Slide 7: Revenue growth of 10.1% for mature stores and 14.5% for same-store sales
We recorded revenue growth of 10.1% for mature stores and 14.5% for same-store sales, helped by a positive calendar effect of 0.9%. Consolidated Revenue Growth Same Store Sales Growth* Mature Stores Growth* 7 * Only considers retail
Slide 8: Gross margins increased by 1.3 p.p. due to a price cap increase of 12%
Gross margins increased by 1.3 p.p. due to a price cap increase of 12%, significantly higher than 2015. Higher level of forward buying and new DC pressured Cash Cycle by 2 days. Gross Margin Cash Cycle (R$ million, % of Gross Revenues) (COGS Days, Gross Revenues Days)C 31.6% Receivables Inventories
Slide 9: SG&A increased by 0.3 p.p.
SG&A increased by 0.3 p.p., with higher marketing (0.2 p.p.), asset write-off (0.2 p.p.), electricity (0.1 p.p.) and store openings (0.1 p.p.) expenses partially offset by G&A and 4Bio dilutions. Sales, General & Administrative Expenses Sales, General & Administrative Expenses (R$ million) (% of Gro
Slide 10: The consolidated EBITDA totaled R$ 304.8 MM, a 10.4% margin
The consolidated EBITDA totaled R$ 304.8 MM, a 10.4% margin. EBITDA margin of 10.5% for Raia Drogasil and of 8.4% for 4Bio. New stores penalized the consolidated EBITDA by R$ 11.8 MM. EBITDA (R$ million, % of Gross Revenues) 1,235 stores operating since 2015: (performance in the 2Q16) • R$ 2.9 billi
Slide 11: Adjusted net income of R$ 167.8 MM in the 2Q16, an increase of 40.6%
We reached an adjusted net income of R$ 167.8 MM in the 2Q16, an increase of 40.6%. Reported net income grew 44.6% vs previous year. Adjusted Net Income (R$ million, % of Gross Revenues) 167.8 119.3 100.8 95.5 94.9 2Q15 3Q15 4Q15 1Q16 2Q16 11
Slide 12: Negative Free Cash Flow of R$ 1.6 MM and Total Cash Flow of R$ 79.7 MM
Negative Free Cash Flow of R$ 1.6 MM and Total Cash Flow of R$ 79.7 MM in the 2Q16 driven by the unfavorable cash cycle seasonality and by a higher cash cycle. 12
Slide 13: Total Shareholder Return of 78.0% YTD
We generated a Total Shareholder Return of 78.0% YTD with an average annual return of 30.8% for Drogasil´s IPO investors since 2007 and of 38.3% for Raia´s IPO investors since 2010. Share Appreciation 1.127 95 Performance 2Q16 RADL3: 78.0% BOVESPA: 18.9% Alpha: 59.1% Average Trading Volume RADL3: R$
Slide 14: 2Q16: A Record Quarter Achieved Through Inflation Management & Customer Centricity
2Q16: A Record Quarter Achieved Through Inflation Management & Customer Centricity under a Long-Term View Inflation Management Ability to boost the inflationary gain through a huge forward buying: Building an Inflationary Hedge for the Year High mature store growth has so far absorbed expenses
Slide 15: Preparing for the Future: Becoming Bigger & Better
Preparing for the Future: Becoming Bigger & Better Increasing Opening Guidance to 200 stores in 2016 and 2017 Increased the contract pool since 2015 Pace of store openings has progressively accelerated and become more linear Opened 97 stores YTD, 196 stores in the LTM New stores presenting
Slide 16: IR Highlights
IR Highlights 2016 Earnings Releases 3Q: October 27th, 2016 Raia Drogasil Day November 25th in the morning Hotel Unique Scheduled Investor Conferences August 16th: 17th Annual Conference, Santander (São Paulo) August 23rd: Brazil Consumer & Healthcare Check-up, JP Morgan (São Paulo)