Raia Drogasil S.a. · BMFBOVESPA:RADL3
Raia Drogasil — Q1 2016 Earnings Presentation
15 slides from Raia Drogasil's earnings presentation, Apr 29, 2016
Slide 1: Earnings Presentation – 1Q16
Earnings Presentation – 1Q16 April 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: 1,274 stores in operation (39 openings) Gross Revenue: R$ 2.6 billion, 26.3% of growth (16.0% retail same-store sales growth) Gross Margin: 28.7% of gross revenue, a 0.2 percentage point margin increase EBITDA: R$ 192.8 million, a 7.3% margin, 0.1 percenta
Slide 4: We opened 39 stores in the quarter and 176 new stores in the last twelve months
We opened 39 stores in the quarter and 176 new stores in the last twelve months, a record for Raia Drogasil and for the market. At the end of the period, 32.8% of our stores were still maturing. Store Count* Age Structure of Store Portfolio MATURE YEAR 3 YEAR 2 YEAR 1 1,274 1,235 11.9% 12.3% 12.2% 1
Slide 5: We gained or preserved share in every region, achieving 10.7% of comparable market share
We gained or preserved share in every region, achieving 10.7% of comparable market share in Brazil, an increase of 1.0 percentage point compared to the previous year. Geographic Presence - Retail Market Share*** 1Q15 22.3 20.9 1Q16 RN: 7 stores PB: 9 stores PE: 19 stores 13.2 13.2 AL: 5 stores SE: 8
Slide 6: Highest growth rate since the merger
Highest growth rate since the merger (25.3% for retail and 85.7% for 4Bio). HPC was the highlight of the quarter (0.4 p.p. increase in the sales mix), at the expense of Branded Rx and Generics. Consolidated Gross Revenue Retail Sales Mix 2015 vs 2016 (%) Services 0.1% 0.1% 0.1% 0.1% 0.1% Raia Drogas
Slide 7: Our revenue grew by 26.3% in the 1Q16
Our revenue grew by 26.3% in the 1Q16, with 12.2% for mature stores, including a positive calendar effect of 0.8% due to the leap year. Consolidated Revenue Growth Same Store Sales Growth* Mature Stores Growth* 26.3% 23.2% 21.1% 21.0% 20.4% 19.7% 18.7% 16.0% 14.7% 12.5% 12.2% 12.0% 12.0% 11.4% 11.3%
Slide 8: Gross margin increased by 0.2 percentage point; cash cycle reduction
Gross margin increased by 0.2 percentage point due to improvements in commercial terms, opportunistic purchases and inventory losses. Cash cycle reduction of 0.8 days. Gross Margin Cash Cycle (R$ million, % of Gross Revenues) (COGS Days, Gross Revenues Days) 30.3% Receivables Inventories Suppliers C
Slide 9: SG&A increased by 0.2 percentage point
SG&A increased by 0.2 percentage point and was diluted by 0.1 p.p. versus the 4Q15. Pressures from payroll, electricity and store openings were partially offset by G&A dilution and by 4Bio. Operating Expenses Operating Expenses (R$ million) (% of Gross Revenues) 564.1 551.9 513.7 62.5 21.2% 21.1% 21
Slide 10: Consolidated EBITDA totaled R$ 192.8 M, margin of 7.3%
The consolidated EBITDA totaled R$ 192.8 M, with a margin of 7.3%. EBITDA margin of 7.4% for Raia Drogasil and of 2.5% for 4Bio. New stores penalized Raia Drogasil’s EBITDA by R$ 14.3 M. EBITDA (R$ million, % of Gross Revenues) 1,235 stores operating since 2015: 9.4% (performance in the 1Q16) 7.4% 7
Slide 11: Adjusted net income of R$ 100.8 M in the 1Q16
We reached an adjusted net income of R$ 100.8 M in the 1Q16, a growth of 23.8%. Reported net income grew 27.4% vs previous year. Adjusted Net Income (R$ million, % of Gross Revenues) 5.1% 3.9% 3.9% 3.7% 3.8% 119.3 100.8 95.5 94.9 81.5 1Q15 2Q15 3Q15 4Q15 1Q16 11
Slide 12: Negative Free Cash Flow of R$ 161.5 M and Total Cash Flow of R$ 156.6 M
Negative Free Cash Flow of R$ 161.5 M and Total Cash Flow of R$ 156.6 M driven by the unfavorable cash cycle seasonality and by the normalization of the working capital investment. Cash Flow 1Q16 1Q15 (R$ million) Adjusted EBIT 129.9 100.3 Income Tax (34%) (44.2) (34.1) Tax Shield from Goodwill 10.7
Slide 13: Total Shareholder Return of 47.1%
We generated a Total Shareholder Return of 47.1% with average annual returns of 29.4% for Drogasil IPO investors and of 35.8% for the Raia IPO investors. Share Appreciation 932 RADL3 IBOV 92 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-
Slide 14: Main Performance Highlights
Main Performance Highlights Revenue Growth: Leveraging Zika Prevention Customer Focus: Detected prevention need in November, responded to assure supply and maintained the prices Operational Readiness: Increased inventories, strong category execution at stores Structured Negotiations: Finance
Slide 15: IR Highlights for 2016
IR Highlights for 2016 ADR Level 1 Launched on March 21st, 2016 Greater visibility by the Capital Markets Access to a broader pool of investors 2016 Earnings Releases 2Q: July 28th, 2016 3Q: October 27th, 2016 Scheduled Investor Conferences May 18th and 19th: 11th Annual Latam CEO