Raia Drogasil S.a. · BMFBOVESPA:RADL3
Raia Drogasil — Q3 2016 Earnings Presentation
15 slides from Raia Drogasil's earnings presentation, Oct 28, 2016
Slide 1: Earnings Presentation – 3Q16
Earnings Presentation – 3Q16 October 28th, 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: 1,370 stores in operation, 53 openings and 13 closures (5 location changes) Gross Revenue: R$ 3.1 billion, 25.2% of growth (13.5% retail same-store sales growth) Gross Margin: 29.5% of gross revenue, a 0.9 percentage point margin increase EBITDA: R$ 254.0
Slide 4: We opened 53 stores in the 3Q16, 150 stores YTD and 212 in the LTM
We opened 53 stores in the 3Q16, 150 stores YTD and 212 stores in the LTM. Maturing stores represent 34.6% of the base, with 15.5% still in year one. Store Count* Age Structure of Store Portfolio 3Q15 4Q15 1Q16 2Q16 3Q16 Opened 37 62 39 58 53 Closed (2) (7) 0 (2) (13) 4 * Includes three 4Bio stores
Slide 5: We gained market share in all regions and reached 11.8% of comparable market share
We gained market share in all regions and reached 11.8% of comparable market share in Brazil, a 1.8 percentage point increase versus the previous year. Geographic Presence Market Share*** RN: 7 stores PB: 10 stores PE: 23 stores AL: 7 stores TO: 2 stores SE: 9 stores GO: 57 stores BA: 32 stores MT:
Slide 6: Gross revenues grew by 25.2%
Gross revenues grew by 25.2% (23.8% for retail and 91.1% for 4Bio). OTC was the highlight (+ 0.4 p.p. in the sales mix), while HPC was penalized by the colder weather (- 1.0 p.p.). Consolidated Gross Revenue Retail Sales Mix 2016 vs 2015 (%) Services Raia Drogasil 4Bio 0.1% 0.1% 0.1% 0.1% 0.1% 23.8
Slide 7: Revenue growth of 8.9% for mature stores and 13.5% for same-store sales
We recorded a revenue growth of 8.9% for mature stores and of 13.5% for same-store sales. Total revenue growth was penalized in approximately 1.3% by the Rio 2016 Olympics. Consolidated Revenue Growth Same Store Sales Growth* Mature Stores Growth* 7 * Only considers retail
Slide 8: Gross margin increased 0.9 pp due to forward buying gains
Gross margin increased 0.9 pp due to forward buying gains, while a higher NPV adjustment was offset by the 4Bio negative mix effect. Cash cycle remained in line with the 3Q15. Gross MargemMargin Bruta Cash Cycle (R$ million, % of Gross Revenues) (COGS Days, Gross Revenues Days)C Receivables Inventor
Slide 9: SG&A increased by 0.1 p.p.
SG&A increased by 0.1 p.p., with higher personnel (0.2 p.p.), marketing (0.1 p.p.) and rentals (0.1 p.p.) expenses and partially offset by a lower pressure from new stores, G&A and 4Bio. Sales, General & Administrative Expenses Sales, General & Administrative Expenses (R$ million) (% of Gross Revenu
Slide 10: Consolidated EBITDA totaled R$ 254.0 MM, an 8.3% margin
The consolidated EBITDA totaled R$ 254.0 MM, an 8.3% margin. EBITDA margin of 8.4% for Raia Drogasil and of 4.8% for 4Bio. New stores penalized the consolidated EBITDA by R$ 6.3 MM. EBITDA (R$ million, % of Gross Revenues) 1,220 stores operating since 2015: (performance in the 3Q16) • R$ 2.9 billion
Slide 11: Adjusted net income of R$ 127.6 MM in the 3Q16
We reached an adjusted net income of R$ 127.6 MM in the 3Q16, an increase of 33.1%. Reported net income grew 39.2% vs previous year. Adjusted Net Income (R$ million, % of Gross Revenues) 11
Slide 12: Positive Free Cash Flow of R$ 172.5 MM in the 3Q16
Positive Free Cash Flow of R$ 172.5 MM and Total Cash Flow of R$ 162.4 MM in the 3Q16 driven by the favorable cash cycle in the quarter. Positive YTD free cash flow of R$ 9.4 MM. Cash Flow 3Q16 3Q15 9M16 9M15 (R$ million) Adjusted EBIT 183.5 124.9 551.6 388.4 Income Tax (34%) (62.4) (42.1) (187.5) (
Slide 13: Total Shareholder Return of 86.8% YTD
We generated a Total Shareholder Return of 86.8% YTD with an average annual return of 30.9% for Drogasil´s IPO investors since 2007 and of 37.9% for Raia´s IPO investors since 2010. Share Appreciation Performance 3Q16 RADL3: 86.8% BOVESPA: 34.6% Alpha: 52.2% Average Trading Volume RADL3: R$ 64.4 M 1
Slide 14: Preparing for the Future: Becoming Bigger & Better
Preparing for the Future: Becoming Bigger & Better Confirming the Opening Guidance of 200 new stores both in 2016 and in 2017 Opened 150 stores YTD, 212 stores in the LTM Pace of store openings has both accelerated and become more linear New stores presenting outstanding performance, consist
Slide 15: IR Highlights
IR Highlights 2016 Earnings Releases 4Q: February 16th, 2017 Raia Drogasil Day November 25th in the morning Hotel Unique English translation available Scheduled Investor Conferences November 8th: Citi Consumer and Retail Conference, Citi (São Paulo) November 15th and 16th : Bradesc