earnings release 3q09 presentation
TRANSCRIPT
3Q09 Earnings Release
November, 9th, 2009.
2
3Q09 Earnings Release
Highlights For The Period
• The Company’s net income increased 164.2% in relation to the 3Q08, reaching R$ 13.1 million, representing a net
margin of 1.9%;
• The Ebitda increased 79.3%, when comparing to the same period of the previous year, reaching R$ 27.7 million, with
an Ebitda margin of 4.1%;
• An expressive cash cycle reduction in 7.1 days, reaching 51.6 days, the lowest level since the year 2006. This drop
represented a working capital reduction of R$ 52.9 million;
• For the fifth quarter in a row, the generation of operating cash flow has been positive, reaching R$ 36.5 million,
accumulating in 2009 a resource generation of R$ 99.4 million or 5.3% of the net operating revenue;
• A reduction of the operating expenses (administrative, commercial, and logistics) of 4.2%, when comparing with the
previous quarter, reaching 6.9% of the net revenues, being this one the best mark of the Company in the past two
years;
• A reduction of the net debt / ebitda ratio of the company for the third quarter in a row, reaching 0,9x, leaving behind a
1,2x position in the 2Q09, representing in this quarter a 25.0% drop;
• Profarma opens a Distribution Center in Goiás, the second DC established in the Midwestern, consolidating the
company’s activities in the region.
3
783.4
764.3
808.2
3Q08 2Q09 3Q09
Gross Revenues Evolution(R$ Million)
3Q09 Earnings Release
4
Gross Revenues Breakdown
(R$ Million) 3Q09 3Q08 Chg. % 2Q09 Chg. %
Branded 548.5 536.0 2.3% 514.0 6.7%
Generics 43.7 48.6 -10.1% 41.2 6.1%
OTC 157.5 144.6 8.9% 153.3 2.7%
Health and Beauty 27.1 30.1 -10.0% 27.0 0.4%
Hospitals + Vaccines 31.5 24.1 30.7% 28.9 9.0%
Total 808.2 783.4 3.2% 764.3 5.7%
3Q09 Earnings Release
5
9.3 9.6 9.6
11.5 11.7
12.1
10.0
2004 2005 2006 2007 2008 3Q08 2Q09 3Q09
3Q09 Earnings Release
Source: IMS
Market Share Evolution (%)
10.0
6
47.0
82.9
65.8
10.3
15.1
3.7
9.3%
13.4%
11.1%
3Q08 2Q09 3Q09
3Q09 Earnings Release
(R$ Million and as % Net Revenues)
Gross Profit and Revenues from Services to Suppliers
Gross Profit Revenues from Services to Suppliers Adjusted GP Margin (%)
7
46.749.9
47.4
6.9%7.0%
3Q08 2Q09 3Q09
7.7%
3Q09 Earnings Release
Operating Expenses
(R$ Million and as % Net Revenues)
8
9.1
8.5
5.1
0.7%
1.3%1.4%
3Q08 2Q09 3Q09
3Q09 Earnings Release
Net Financial Expenses
(R$ Million and as % Net Revenues)
9
5.0
17.9
13.1
1.9%
2.8%
0.7%
3Q08 2Q09 3Q09
3Q09 Earnings Release
Net Income
(R$ Million and as % Net Revenues)
10
15.5
37.8
27.7
4.1%
5.8%
2.3%
3Q08 2Q09 3Q09
3Q09 Earnings Release
Ebitda e Ebitda Margin
(R$ Million and as % Net Revenues)
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3Q09 Earnings Release
(R$ Million) 3Q09 3Q08 % Variation 2Q09 % Variation
Cash Flow Generated / (Used) in Operating Activities 36.5 18.7 95.5% 26.3 38.5%
Internal Cash Generation 19.3 11.0 75.1% 24.8 -22.4%
Operating Assets Variation 17.2 7.7 124.9% 1.5 1026.3%
Trade Accounts Receivable (1.9) (3.8) 50.0% (33.2) 94.3%
Inventories 27.0 0.2 13603.0% 11.5 135.1%
Suppliers (3.7) 13.0 - 18.4 -
Other Items (4.1) (1.7) -143.0% 4.8 -
Cash Flow (Used) in Investing Activities (2.2) (1.4) -56.4% (2.7) 18.0%
Cash Flow Generated / (Used) by Financing Activities (17.1) (8.2) -109.7% (61.1) 72.0%
Net Increase / (Decrease) in Cash 17.2 9.1 88.8% (37.4) -
Cash Flow
12
3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08
49.3 53.4 62.5 69.6 67.8 64.3 68.8 67.2 61.8 65.8
45.2 50.0 54.6 53.1 50.9 51.7 50.7 49.2 47.0 45.9
33.1 44.7 43.4 47.2 41.3 48.6 47.9 45.7 42.5 49.9
29.0 41.3 35.6 30.7 24.5 36.0 29.8 27.7 27.7 29.9
1Q09
67.9
42.4
54.0
28.5
2Q09
58.7
40.5
46.5
28.4
3Q09
51.6
38.4
38.5
25.3
3Q09 Earnings Release
Cash Cycle - Days *
Accounts Receivable (1)
Inventories (2)
Accounts Payable (3)
* Average
(1) Average of Gross Revenues in the Quarter
(2) Average of COGS in the Quarter
(3) Average of COGS in the Quarter
13
154.5
110.8
95.0
0.91.2
1.9
3Q08 2Q09 3Q09
3Q09 Earnings Release
Indebtedness: Net Debt and Net Debt / Ebitda*
(R$ Million)
* Ebitda = Accumulated last 12 months
14
2.8
2.2
1.4
0.2% 0.3%0.4%
3Q08 2Q09 3Q09
3Q09 Earnings Release
Capex
(R$ Million and as % Net Revenues)
15
90.8%
92.0%
94.1%
3Q08 2Q09 3Q09
86.0
112.0
120.0
3Q08 2Q09 3Q09
Service Level
(units served / units requested)
Logistics E.P.M.
(Errors per Million)
Operating Indicators
3Q09 Earnings Release
16
3Q09 Earnings Release
* 100 pts basis on 25/oct/2006
15
25
35
45
55
65
75
85
95
105
115
125
135
145
155
165
175
185
Ibovespa Profarma
Share Performance
17
Javier Martinez de Olcoz Cerdan
Phone: (1 212) 761-4542
E-mail: [email protected]
Morgan Stanley
Marcel Moraes - Thais Pinho
Phone: (55 11) 3841-6302 / (55 11) 3841-6341
E-mail: [email protected]
E-mail: [email protected]
Credit Suisse
João Carlos dos Santos - Alexandre Pizano
Phone: (55 11) 2188-4316 / (55 11) 2188-4024
E-mail: [email protected]
E-mail: [email protected]
Merril Lynch
Renata Faber - Marcio Osako
Phone: (55 11) 3073-3017 / (55 11) 3073-3040
E-mail: [email protected]
E-mail: [email protected]
Itaú BBA
AnalystCompany
3Q09 Earnings Release
Analyst Coverage
Max Fischer
CFO and IR Director
Beatriz Diez
IR Coordenador
Telephone.: 55 (21) 4009 0276
E-mail: [email protected]
www.profarma.com.br/ir
IR Contacts