Profarma Distribuidora De Produtos Farmaceuticos Sa · BMFBOVESPA:PFRM3
Profarma Distribuidora De Produtos Farmaceuticos Sa — Profarma — Q1 2014 Earnings Presentation
27 slides from Profarma Distribuidora De Produtos Farmaceuticos Sa's earnings presentation, May 22, 2014
Slide 1: 1Q14 Earnings Release
1Q14 EARNINGS RELEASE MAY 22, 2014
Slide 2: Highlights | Corporate
Highlights | Corporate The only Brazil’s mixed market player that features exposure and expansion capacity in the segments of Retail, Hospital & Specialties and Distribution; Strategic partnership with AmerisourceBergen, the world’s largest player in the pharmaceutical specialties, resulting in the
Slide 3: Highlights | Period
Highlights | Period CONSOLIDATED PHARMACEUTICAL DISTRIBUTION • The EGM held on May 12, 2014 approved the capital • A 11.9% drop in total operating expenses quarter-over- quarter; increase-totaling R$ 187.0 million at least and R$ 335.6 • A 13.1% rise in sales to independent customers; million at mos
Slide 4: Highlights | Breakdown by Division – 1Q14
Highlights | Breakdown by Division – 1Q14 Pharmaceutical Specialties Retail* Consolidated* Distribution 1Q13 1Q14 1Q13 1Q14 1Q13 1Q14 1Q13 1Q14 Gross Revenues 847.4 818.7 138.9 146.3 124.4 155.8 1,036.7 1,031.2 Gross Profit 79.4 70.9 16.5 17.6 33.1 47.3 128.9 135.9 SGA 59.4 55.2 14.6 14.8 41.9 47.8
Slide 5: Consolidated Performance
CONSOLIDATED PERFORMANCE
Slide 6: Consolidated Performance: Gross Revenues Evolution
Consolidated Performance Pharmaceutical Distribution Gross Revenues Evolution (R$ million) Sales growth by 13.1% in the segments of independent clients and 1,041.4 by 29.2% in the OTC category in 1,036.7 1,031.2 comparison with 1Q13. 50.4 56.2 54.6 Specialties -0.5% 5.4% growth in revenues from the
Slide 7: Performance by Division
Performance by Division Gross Revenues Evolution (R$ million) Pharmaceutical Distribution Specialties Retail(*) 161.3 847.4 155.8 818.7 156.0 816.4 146.3 95.2 138.9 94.6 124.4 -3.4% 0.3% -6.2% 82.4 66.1 -3.4% 5.4% 25.3% 61.2 42.0 1Q13 4Q13 1Q14 1Q13 4Q13 1Q14 1Q13 4Q13 1Q14 (*) Pro-forma figures: 10
Slide 8: Consolidated Performance: Gross Profit
Consolidated Performance Gross Profit (R$ million and % Net Revenues) Pro-forma (*) 13.4% 12.6% 16.6% 15.8% 11.2% 14.1% 115.9 145.9 106.5 135.9 95.8 128.9 1Q13 4Q13 1Q14 1Q13 4Q13 1Q14 (*) Pro-forma figures: 100% of revenues from Tamoio and Drogasmil / Farmalife (unaudited figures for 1Q13) 8
Slide 9: Consolidated Performance: Operating Expenses – SG&A
Consolidated Performance Operating Expenses – SG&A (R$ million and % Net Revenues) Pro-forma (*) 12.3% 14.9% 13.7% 11.1% 12.7% 8.6% 105.7 130.5 93.3 117.8 115.9 74.0 1Q13 4Q13 1Q14 1Q13 4Q13 1Q14 (*) Pro-forma figures: 100% of revenues from Tamoio and Drogasmil / Farmalife (unaudited figures for 1Q1
Slide 10: Consolidated Performance: EBITDA and EBITDA Margin
Consolidated Performance EBITDA and EBITDA Margin (R$ million and % Net Revenues) Pro-forma (*) 2.2% 1.7% 2.1% 1.4% 1.6% 1.0% 18.8 14.8 18.3 11.9 15.1 9.5 -19.5% -17.4% -36.7% 58.8% 1Q13 4Q13 1Q14 1Q13 4Q13 1Q14 (*) Pro-forma figures: 100% of revenues from Tamoio and Drogasmil / Farmalife (unaudited
Slide 11: Consolidated Performance: Net Profit
Consolidated Performance Net Profit (R$ million and % Net Revenues) Pro-forma (*) 0.8% -0.5% -0.6% -0.3% -1.6% -1.4% 6.9 4Q13 1Q14 1Q13 4Q13 1Q14 1Q13 -2.9 -4.6 -5.6 -13.5 -11.9 (*) Pro-forma figures: 100% of revenues from Tamoio and Drogasmil / Farmalife (unaudited figures for 1Q13) 11
Slide 12: Consolidated Performance: Cash Flow and Cash Cycle
Consolidated Performance Cash Flow Cash Cycle (R$ million) (Days) 1Q14 1Q13 4Q13 1Q13 4Q13 1Q14 Cash Flow Generated / Cash Cycle - Days * 50.7 55.0 48.1 Used) in Operating Activities 81.0 (61.9) 7.9 Internal Cash Generatio 5.1 14.0 9.8 Accounts Receivable (1) 59.5 45.8 45.1 Operating Assets Variatio
Slide 13: Consolidated Performance: Acquisitions, Capex and Indebtedness
Consolidated Performance Acquisitions – Last 12-Months Period Indebtedness: Net Debt and Net Debt / EBITDA (R$ million) (R$ million) 275.5 4.8x 98.9 4.6x 2.6X 74.0 80.4 458.5 12.2 412.0 236.5 Tamoio CSB CSB Remaining Total Acquisition Debt Investment Acquisition 275.5 275.5 of Prodiet Capex (R$ mill
Slide 14: Pharmaceutical Distribution
PHARMACEUTICAL DISTRIBUTION
Slide 15: Pharmaceutical Distribution: Financial Data
Pharmaceutical Distribution Financial Data (R$ million and % Net Revenues) Sales growth by 13.1% in the 847.4 segments of independent 818.7 clients; Sales growth by 29.2% in the OTC category over 1Q13; Year-over-year growth by 10.8 10.1 18.1% in the Southern region; 8.1 7.9 Reduction in total operat
Slide 16: Specialties
PROFARMA Specialty Powered by nae rceBergen
Slide 17: Specialties: Financial Data
Specialties Financial Data (R$ million and % Net Revenues) Strategic partnership with 146.3 AmerisourceBergen, resulting in the creation of Profarma 138.9 Specialty; 13.5 13.4 Sales growth by 5.4% in this division, with highlights to 11.9 11.3 Prodiet reaching 18.7%; 1.6 1.2 Total operating expenses
Slide 18: Retail
RETAIL
Slide 19: Retail | Tamoio: Financial Data
Retail | Tamoio Financial Data (R$ million and % Net Revenues) Sales from Tamoio chain 94.6 stores rose by 14.8% year- over-year; 82.4 Average monthly sales per mature store grew by 9.1%, 31.1 from R$ 481,700 in 1Q13 to 28.5 R$ 525,500 in 1Q14; 25.9 25.7 EBITDA of R$ 4.9 million in 1Q14, with a 5.1%
Slide 20: Retail | Tamoio: Store Sales
Retail | Tamoio Monthly Average Store's Sales Same Store Sales SSS Mature Stores (R$ thousand) (R$ million) (R$ million) 537.8 525.5 86.0 84.8 92.4 88.1 481.7 76.7 78.8 -2.3% -4.6% -1.4% 9.1% 11.8% 10.6% 1Q13 4Q13 1Q14 1Q13 4Q13 1Q14 1Q13 4Q13 1Q14 20
Slide 21: Retail | Tamoio: Stores and Average Ticket
Retail | Tamoio # of Stores Average Ticket (units) (in reais) 60 59 26.1 25.9 57 24.9 1.7% 0.9% 5.3% 4.6% 1Q13 4Q13 1Q14 1Q13 4Q13 1Q14 4Q13 1 Opening 0 Reformulating vs. 1Q14 0 Close-downs 46 Mature 21
Slide 22: Retail | Drogasmil/Farmalife: Financial Data
Retail | Drogasmil/Farmalife Financial Data (R$ million and % Net Revenues) Average monthly sales per store climbed by 98.2%, from 61.2 R$ 164,300 in 1Q13 to R$ 325,700 in 1Q14; Gross margin rose by 6.4 p.p., 49.4 from 22.9% in 1Q13 to 29.3% in 1Q14; 42.0 29.3 38.1 The SAP system was implemented in
Slide 23: Retail | Drogasmil/Farmalife: Store Sales
Retail | Drogasmil/Farmalife Monthly Average Store's Sales Same Store Sales SSS Mature Stores (R$ thousand) (R$ million) (R$ million) 333.6 325.7 20.3 20.5 19.6 19.4 11.9 11.6 -2.4% -4.4% -4.4% 164.3 98.3% 65.2% 66.7% 1Q13 4Q13 1Q14 1Q13 4Q13 1Q14 1Q13 4Q13 1Q14 23
Slide 24: Retail | Drogasmil/Farmalife: Stores and Average Ticket
Retail | Drogasmil/Farmalife # of Stores Average Ticket (units) (in reais) 85 65 30.1 29.1 63 24.3 -3.1% 3.3% -25.9% 23.8% 1Q13 4Q13 1Q14 1Q13 4Q13 1Q14 4Q13 3 Openings 0 Reformulating vs. 1Q14 5 Close-downs 58 Mature 24
Slide 25: Analyst Coverage
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Slide 26: Analyst Coverage
Analyst Coverage Company Analyst Telephone E-mail Banco Fator Pedro Ivo Barreto Zabeu +55 (11) 3049-9478 [email protected] Brasil Plural Guilherme Assis +55 (11) 3206 8285 [email protected] BTG Pactual João Carlos dos Santos +55 (11) 3383-2384 [email protected]
Slide 27: Max Fischer, CFO and IRO & Beatriz Diez, IR Manager
Max Fischer | CFO and IRO & Beatriz Diez | IR Manager www.profarma.com.br/ir | Tel.: 55 (21) 4009-0276 | E-mail: [email protected]