2 q12 results conference call presentation
TRANSCRIPT
Earnings Release 2Q12
OPERATING AND FINANCIAL HIGHLIGHTS 2Q12
Opening of 30 stores and 8 stores closed during the quarter
Gross revenue of R$746.9 million, a 21.9% growth over 2Q11
Total SSS of 13.8% and mature SSS of 9.1%
Gross margin of 30.1%, in line with 1Q12
Adjusted EBITDA of R$46.3 million and adjusted EBITDA margin of 6.2%
Adjusted net profit of R$24.3 million and adjusted net margin of 3.3%
Follow-on Offering with total raise of R$476.2 million in net proceeds
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OUR OWN STORE PLATFORMS AND FRANCHISES
North 104
Northest 242
Midwest 118
Southeast
South 201
REGIONS
Owned stores
10
1
103 20
15
19
10
193
7
75
114
1
8
232 Owned stores¹
114 Owned stores²
118 Owned stores
352 franchises
201 Owned stores
05 Distribution centers
Footprint
1.017 stores
665 owned stores
352 Franchises
89
1) Includes 69 stores of the Guararapes platform.
2) Includes 11 stores acquired from Estrela Galdino on April 2012 and added to the Sant’Ana stores chain in June 30, 2012. Therefore they generated no revenues in 2Q12.
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STORE OPENING AND MATURATION PROFILE
Growth of owned stores base Owned stores by stage of maturity
118
201
114
232
249 2030
4 8
2011 Acquisition Organic growth Closing 1Q12 Organic growth Closing 2Q12
378
643 665
1
2
1- Includes 69 stores of the Guararapes platform. 2- Includes 11 stores acquired from Estrela Galdino on April 2012, added to Sant’Ana’s store count. The stores were acquired but not yet incorporated and therefore generated no revenues in 2Q12.
Opening of 30 stores and 8 stores closed
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ANALYSIS OF RESULTS Gross revenue
(R$ million)
Total and mature stores SSS
(%)
613747
1,166
1,446
2Q11 2Q12 1H11 1H12
+21.9%
+24.1%
12.4%13.8%
11.3%
14.9%
8.9% 9.1%7.4%
10.4%
2Q11 2Q12 1H11 1H12
SSS total SSS mature stores (36 months or above)
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Sales Mix and Average Ticket
Average Ticket
(R$)
Sales Mix
(%)
31.6% 37.5% 36.5%
21.0% 16.4% 17.1%
47.5% 46.1% 46.4%
2011 1Q12 2Q12
Non medicines Generic medicine Branded medicine
29.9
31.4
29.1
30.1
2Q11 2Q12 1H11 1H12
+5.0%
+3.4%
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Gross Profit and SG&A Expenses Gross Profit and Gross Margin ( % of Gross Revenue)
(R$ million)
Selling, General and Administrative Expenses (SG&A)
(R$ million)
197.2224.5
363.4
435.5
32.2%30.1%
31.2% 30.1%
1,00%3,00%5,00%7,00%9,00%11,00%13,00%15,00%17,00%19,00%21,00%23,00%25,00%27,00%29,00%31,00%33,00%
2Q11 2Q12 1H11 1H12
46.7 51.9 83.8 103.3108.1 126.2
211.9248.9154.8 178.1
295.7
352.3
2Q11 2Q12 1H11 1H12
General & Administrative
Sales expenses
7.6% 7.0% 7.2% 7.1%
17.6% 16.9%18.2% 17.2%
25.3%23.9%
25.4% 24.4%
2Q11 2Q12 1H11 1H12
G&A % Sales expenses % SG&A total %
Note: adjusted to exclude non-recurring expenses
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Adjusted Ebitda and Adjusted Ebitda Margin (%) Adjusted Ebitda and Adjusted Ebitda Margin (% of Gross Revenue)
(R$ million)
Adjusted Net Profit and Adjusted Net Margin (% of Gross Revenue)
(R$ million)
42.3 46.3
67.7
83.2
6.9%6.2% 5.8% 5.7%
-03%
-01%
01%
03%
05%
07%
2Q11 2Q12 1H11 1H12
28.124.2
39.534.3
4.6%3.3% 3.4%
2.4%
-9,90%
-7,90%
-5,90%
-3,90%
-1,90%
0,10%
2,10%
4,10%
2Q11 2Q12 1H11 1H12
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Days of Working capital 1Q12 2Q12
Accounts receivable 22 25
Inventories 86 92
Suppliers 63 54
Cash cycle 45 63
Cash flow Statement (R$'000) 1Q12 2Q12
EBT 10,2 7,8 - -
(+) Depreciation and amortization 16,1 12,3
(+) Others 13,1 12,9 - -
Operating cash generation 39,5 33,0 - -
(-) Change in working capital (57,5) (93,6)
(-) Change in other assets and liabilities (13,9) (41,6) - -
Net cash generated by operating activities (32,0) (102,2) - -
(-) Capex from operations (19,5) (28,2)
(-) Acquisitions (286,3) (41,6)
Net Cash from investing activities (305,9) (69,7) - -
(+/-) Loans and financing 196,3 62,5
(+) Equity funding 0,9 397,9
Net Cash from financing activities 197,2 460,3 - -
CASH FLOW, CASH CYCLE AND DEBT
Debt
(R$mm)
Cash Cycle
Cash Flow
(R$mm)
Cash position and indebtedness (R$'000) 1Q12 2Q12
Cash and cash equivalents 122,9 480,9
Total debt 691,7 763,0
Short term (%) 39,9% 19,6%
Long term (%) 60,1% 80,4%
Loans and financing 344,5 414,8
Short term 241,3 54,8
Long term 103,2 360,0
Accounts payable for acquisitions 347,2 348,2
Short term 34,8 95,0
Long term 312,4 253,3
Net debt 568,8 282,2
Net debt/Adjusted EBITDA (LTM) 3,4 X 1,7 X
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BRAZIL PHARMA: OUR HISTORY From regional leaders into a great national Company
2012 2013E 2014E 2016E2015E1945 1965 1975 1994
IPO
1994 2009 20111995
186 years of
History
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BRAZIL PHARMA: YOUR FIRST OPTION From regional leaders into a great national Company
Holding
Operations Administrative
(SSC) Commercial
Corporate
#1 for our suppliers #1 for our clients #1 for our talent
Dis
tin
ct
Co
mp
an
ies
O
ne
sin
gle
Co
mp
an
y
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COMMERCIAL INTEGRATION
Longterm partnerships and new structure
Commercial / Corporate Trade
• Orders;
• Negotiation;
• Support to our suppliers;
• Controls.
Sell Out Team/ Execution
•Trade;
•Stores visit;
•Local demand;
•Campaigns.
Diretor Comercial
Carlos Dutra
Procurement Director
Procurement
Medicine HPC
Logistics Trade Marketing
Procurement /
Trade Marketing
Corporate
Sell In
Sell Out
Sell Out
Sell Out
Sell Out
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CAPITAL MARKETS
Capital Markets
60
70
80
90
100
110
120
130
140
150
160
BPHA3
IBOV
151
94
Markets closed on August 14th 2012 BPHA3 – R$/share: R$12.41 Total shares outstanding: 238.0 million Market cap: R$2.95 billion
Source: Bloomberg, as of August 14th, 2012.
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IMPORTANT NOTE
This document may contain forward-looking statements in relation to the Company and its subsidiaries which reflect the current outlook and/or expectations of the Company and its management for its performance and its business and in relation to future events. These forward-looking statements are subject to risk and uncertainty in respect of factors which cannot be controlled or precisely estimated by the Company, such as market conditions, competitive environment, currency fluctuations and changes in the inflation rate, alterations in regulatory and governmental bodies and other factors affecting the Company's operations. As a result, the Company's future results may show material differences from these projections. The reader is warned not to take any investment decision exclusively on the basis of these forward-looking statements. The forward-looking statements do not represent and should not be interpreted as a guarantee of future performance. The Company does not undertake to publish any revision of these forward-looking statements, or to update them in the face of events or circumstances which may arise after the date of this document. This document contains operational information and other proforma management information which is internal to the Company and not derived directly from the financial statements. This information has not been specially reviewed by the Company’s independent auditors and may involve assumptions and estimates adopted by the management. This information should not be considered as sufficient in isolation for any investment decision and should be read in conjunction with the Company’s financial information that has been subject to limited review or audit and which is filed with the Securities Commission (CVM). No responsibility will be accepted by the Company and its subsidiaries, or by their board members, officers, agents, employees, advisers or representatives, for any loss or prejudice arising from the use of the information presented or contained in this document, or for any damage resulting, corresponding or specific thereto. Data included in this document was obtained by means of internal research, market surveys, information in the public domain and business publications; the Company has not confirmed the reliability of this data with the respective sources.
INVESTOR RELATIONS CONTACT - IR Renato Lobo IR Director Otavio Lyra IR Manager Marina Sousa IR Team Telephone: +55 (11) 2117- 5212 E-mail: [email protected] IR Website: www.brph.com.br
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