Transcript
2Q16 EARNINGS RELEASE AUGUST 4, 2016
Highlights | Corporate
2
• 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 creation of the company Profarma
Specialty since 2014;
• The Company carried out four acquisitions between 2012-2015, including its
entry into the Retail pharmaceutical segment, and the attainment of a market
position as 2nd largest player within this segment in the state of Rio de Janeiro;
• Proven capacity to integrate acquisitions, combining all group companies in the
SAP plataform, BI Cognos and Hyperion.
Highlights | 2Q16
3
CONSOLIDATED PRO-FORMA (considering 100% of all group companies)
• Gross revenue climbed by 15.2%;
• EBITDA rose by 59.8% to R$ 60.2 million,
with 5.1% EBITDA margin;
• Operating expenses shrank by 1.0 p.p.,
from 12.8% to 11.8% and;
• R$ 140.0 million capital increase ratification in late June.
RETAIL
• Sales increased by 10.5%;
• EBITDA climbed by 50.1% to R$ 9.8 million, with 4.8% EBITDA margin, the division’s highest since 2013;
• Operating expenses shrank by 0.5 p.p., from 26.5% to 26.0% and;
• Average monthly sales per mature store grew by 8.5%.
SPECIALTIES
• Sales increased by 41.9%;
• EBITDA shot up by 80.0% to R$ 5.1 million,
with 2.3% EBITDA margin;
• Operating expenses decreased by 1.5 p.p.,
from 10.5% to 9.0%, and;
• Sales to the private sector climbed by 54.2%.
PHARMACEUTICAL DISTRIBUTION
• Sales increased by 11.4%;
• EBITDA rose by 59.0% to R$ 45.1 million, with 5.3% EBITDA margin, the best performance in 7 years;
• Operating expenses shrank by 0.8 p.p.,
from 8.5% to 7.7% and;
• Health & beauty product sales rose by 19.5%.
Specialties(*)
2Q15 2Q16
Retail(**)
2Q15
2Q16
Consolidated (*)(**)
2Q15 2Q16
Pharmaceutical
Distribution
2Q15 2Q16
Highlights | Breakdown by Division – 2Q16
4
Gross Revenues
Gross Profit
SGA
Ebitda
(*) Pro-forma figures: 100% of revenues from Tamoio and Drogasmil / Farmalife in 2Q15.
(**) Pro-forma figures: 100% of revenues from Specialties (2Q15 and 2Q16).
173.7
20.3
16.7
2.8
246.5
30.8
20.3
5.1
185.3
58.5
49.2
6.6
204.8
63.4
53.2
9.8
1,178.5
178.7
132.3
37.7
1,357.3
208.4
139.9
60.2
900.8
99.9
66.4
28.4
1,003.2
114.2
66.5
45.1
CONSOLIDATED PERFORMANCE
Specialties
Consolidated Performance
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Gross Revenues Evolution (R$ million)
Pharmaceutical Distribution
Sales increased by 11.4% year-over-
year
Sales increased by 41.9% in
comparison with 2Q16
Sales increased by 10.5% year-over-
year
Accounting Consolidated Gross Revenues
Pro-forma Consolidated Gross Revenues: 2Q15 – 100% from
Tamoio and Specialties / 1Q16 and 2Q16 – 100% from Specialties
Retail
964.1
214.5
1,178.5
1,126.0
212.2
1,338.2
1,149.6
207.7
1,357.3
2Q15 1Q16 2Q16
1.4%
15.2%
Performance by Division
Pharmaceutical Distribution Specialties(**) Retail
7
Gross Revenues Evolution (R$ million)
Accounting Gross Revenues
Pro-forma additional Gross
Revenues
(*) Pro-forma figures: 100% of revenues from Tamoio and Drogasmil / Farmalife
(**) Pro-forma figures: 100% of revenues from Specialties
2Q15 1Q16 2Q16
900.8
1,021.0
-1.7%
11.4%
2Q15 1Q16 2Q16
173.7
230.9
246.5
6.8%
41.9%
2Q15(*) 1Q16 2Q16
75.4
10.5%
109.9
185.3
204.8
4.5%
1,003.2 195.9
Consolidated Performance
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Pro-forma (*)
Gross Profit (R$ million and % Net Revenues)
2Q16 2Q15
14.7%
123.6
1Q16
13.6%
133.4
17.8%
177.6
13.5%
2Q16 2Q15
17.2%
178.7
1Q16
157.6
17.6%
208.4
(*) Pro-forma data: 2Q15 – 100% of revenues from Tamoio and Specialties / 1Q16 and 2Q16 – 100% of revenues from Specialties
Consolidated Performance
9
Operating Expenses – SGA (R$ $ million and % Net Revenues)
Pro-forma (*)
12.8%
132.3
11.1%
130.4
11.8%
139.9
91.1 112.1
119.6
10.8% 11.5% 12.0%
2Q16 2Q15 1Q16 2Q16 2Q15 1Q16
(*) Pro-forma data: 2Q15 – 100% of revenues from Tamoio and Specialties / 1Q16 and 2Q16 – 100% of revenues from Specialties
Consolidated Performance
10
Adjusted EBITDA and Adjusted EBITDA Margin (R$ million and % Net Revenues)
Pro-forma (*)
2Q16 2Q15 1Q16 2Q16 2Q15 1Q16
3.2%
27.2
2.1%
20.7
5.4%
54.1
161.7%
98.8%
3.6%
37.7
2.2%
25.8
5.1%
60.2
133.3%
59.8%
(*) Pro-forma data: 2Q15 – 100% of revenues from Tamoio and Specialties / 1Q16 and 2Q16 – 100% of revenues from Specialties
Consolidated Performance
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Net Profit (R$ million and % Net Revenues)
Net Profit
Adjusted Net Profit
Pro-Forma Net Profit
Pro-Forma Adjusted Net Profit
Pro-forma (*)
(9.3)
2Q15
2.7
0.3% -0.9%
0.6%
1Q16
(10.2)
7.5
0.1
2Q16
0.0% -0.9%
0.8%
8.5
1Q16 3.2
16.0
(6.2)
0.4% -0.6%
1.6%
6.3
(6.9)
15.0
0.6% -0.6%
1.3%
2Q15 2Q16
(*) Pro-forma data: 2Q15 – 100% of revenues from Tamoio and Specialties / 1Q16 and 2Q16 – 100% of revenues from Specialties
Consolidated Performance
Cash Flow (R$ million)
* Average
(1) Average of Gross Revenues in the Quarter
(2) Average of COGS in the Quarter
(3) Average of COGS in the Quarter
(4) The account was based on the average gross sale and CGS, excluding Specialties
division and Tamio’s chain
(5) The account was based on the average gross sale and CGS, excluding Specialties
division
Cash Cycle (Days)
Cash Flow Generated /
Used) in Operating Activities
Internal Cash Generation
Operating Assets Variation
Cash Flow (Used)
in Investing Activities
Cash Flow Generated /
(Used) by Financing Activities
Net Increase /
(Decrease) in Cash
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Consolidated
Pro-forma
Cash Cycle *
Accounts Receivable¹
Inventories²
Accounts Payable³
Consolidated Pharma PFS. Retail
2Q16
(185.2)
33.6
(218.8)
(25.1)
138.2
(72.2)
2Q15
(104.2)
20.7
(124.9)
(5.9)
(6.6)
(116.7)
2Q165 1Q165 2Q154 2Q16 2Q16 2Q16
44.3
71.4
60.5
55.2 46.9
44.5
63.2
60.7
44.6
70.2
81.9
32.9
20.0
66.2
41.2
45.1 42.7
58.8
46.3
62.4
51.1
50.8
66.4
66.0
Consolidated Performance
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Capex (R$ million)
Indebtedness: Net Debt and Net Debt /
EBITDA (R$ million)
Capex
2Q16 Other IT
Machinery and
Equipment 2Q15 1Q16 2Q16
331.9
287.7
428.4
4.5x 3.3x 3.8x
9.2 5.2
1.3
2.7
PHARMACEUTICAL DISTRIBUTION
Pharmaceutical Distribution
Financial Data (R$ million and % Net Revenues)
5.3
2Q15 2Q16
3.6
7.7
2Q15 2Q16
8.5
13.3
2Q15 2Q16
12.8
1,003.2
2Q15 2Q16
900.8
Operating expenses shrank
by 0.8 p.p., from 8.5% to
7.7%.
EBITDA rose by 59.0% to R$
45.1 million, with 5.3%
EBITDA margin, the best
performance in 7 years;
Sales increased by 11.4%;
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EBITDA Margin
(%)
Op. Exp. SG&A
(%)
Gross Margin
(%)
Gross Revenues
(R$ million)
SPECIALTIES
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2.3 1.8
9.0
10.5
13.7
12.7
246.5
173.7
Specialties
Sales increased by 41.9%;
EBITDA shot up by 80.0% to
R$ 5.1 million, with 2.3%
EBITDA margin;
Operating expenses
decreased by 1.5 p.p.,
from 10.5% to 9.0%.
Financial Data (*) (R$ million and % Net Revenues)
2Q15 2Q16 2Q15 2Q16 2Q15 2Q16 2Q15 2Q16
EBITDA Margin
(%)
Op. Exp. SG&A
(%)
Gross Margin
(%)
Gross Revenues
(R$ million)
(*) Basis 100%
RETAIL
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4.8
3.5
26.0 26.5
31.0 31.6
204.8
185.3
Retail
Sales increased by 10.5%;
Operating expenses shrank
by 0.5 p.p.,from 26.5% to
26.0%.
EBITDA climbed by 50.1% to
R$ 9.8 million, with 4.8%
EBITDA margin, the
division’s highest since
2013;
(*) 2Q15 Pro-forma figures: 100% of revenues from Tamoio
Financial Data (R$ million and % Net Revenues)
2Q15* 2Q16 2Q15* 2Q16 2Q15* 2Q16 2Q15* 2Q16
EBITDA Margin
(%)
Op. Exp. SG&A
(%)
Gross Margin
(%)
Gross Revenues
(R$ million)
Retail
20
Total Sales Growth (%)
SSS Mature Stores (%)
Same Store Sales (%)
Monthly Average
Store's Sales (mature) (R$ thousand)
(*) 2Q15 Pro-forma figures: 100% of revenues from Tamoio
2Q15 2Q16 1Q16 2Q15 2Q16 1Q16 2Q15 2Q16 1Q16 2Q15 2Q16 1Q16
13.3%
8.5% 9.6%
-4.8 p.p.
-1.1 p.p.
17.9%
11.1% 11.3%
-6.8 p.p.
-0.2 p.p.
589.7
548.3 543.5
8.5%
7.5%
10.5%
15.1%
12.4%
-4.6 p.p.
-1.9 p.p.
Retail
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2 Opening
1 Close-downs
3 Reformulated
103 Mature
Average Ticket (R$)
# of Stores (units)
(*) 2Q15 Pro-forma figures: 100% of revenues from Tamoio
2Q15 2Q16 1Q16 2Q15 1Q16 2Q16
33.18
35.82
34.49
7.9%
3.8%
128 128 129
0.8%
0.8%
ANALYST COVERAGE
Analyst Coverage
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Company Analyst Telephone E-mail
Brasil Plural Guilherme Assis +55 (11) 3206 8285 guilherme.assis@brasilplural.com.br
BTG Pactual Rodrigo Gastim +55 (11) 3383-2468 rodrigo.gastim@btgpactual.com
BofA Merrill Lynch Roberto Otero +55 (11) 2188-4119 roberto.otero@baml.com
Morgan Stanley Javier Martinez de Olcoz +55 (11) 3048 6088 javier.martinez.olcoz@morganstanley.com
Votorantim Andre Parize +55 (11) 5171 5870 andre.parize@votorantimcorretora.com.br
J.P. Morgan Joseph Giordano +55 (11) 4950-3020 joseph.giordano@jpmresearchmail.com
Max Fischer - CFO e IRO & Beatriz Diez - IRM
www.profarma.com.br/ir | Phone.: 55 (21) 4009-0276 | E-mail: ri@profarma.com.br
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