profarma 4 q12
TRANSCRIPT
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4Q12 and 2012 Earnings Release
March, 27, 2013
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Highlights in the Period
• The Company's consolidated net income rose by 53.6% year-over-year to R$ 40.6 million, with net margin of 1.3%;
• Consolidated gross revenues increased 14.6% year-over-year and totaled R$ 3.8 billion. It is worth noting the generics
and health and beauty categories, which increased by 29.6% and 22.8% respectively;
• Consolidated EBITDA climbed by 26.4% against 2011 and came to R$ 92.2 million, with 2.9% EBITDA margin;
• A drop of 1.7 days in the Company's cash cycle when compared with 2011, to 46.3 days. This decrease resulted in a fall of
about R$ 21.6 million in working capital;
• The acquisition of 80% of Arp Med S.A.’s capital for a multiple EV/EBITDA (2012E) of 5.3x was approved by CADE on
December 28, 2012.
Subsequent events*:
• On January 17, 2013, the Company acquired 100% of Drogasmil and Farmalife drugstore chains, with 85 stores in Rio de
Janeiro State, for R$ 87.0 million, to be paid net of the debt level of the company;
• On January 30, 2013, the Company acquired 50% of Drogarias Tamoio chain, which consists of 57 stores in Rio de
Janeiro State. The transaction was made by means of a primary subscription of R$ 62.3 million and a secondary
subscription of R$ 43.1 million, with a multiple EV/EBITDA (2013E) of 7.5x;
• On February 21, 2013, Profarma entered into a joint venture agreement with Nutrilatina to create Supernova. With this
move, Profarma has become the exclusive distributor of Nutrilatina's products to pharmaceutical retailers and entered a
new market, body shops, also as a sole distributor. * These transactions have to be approved by CADE - with the exception of Supernova.
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Gross Revenues Evolution
(R$ million)
4Q11 4Q12 2011
3,317.0
928.5 971.0
2012
3,802.7
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Gross Revenues Breakdown
(R$ Million)
Branded
Generic
OTC
Health and Beauty Products
Hospitals and Vaccines
Total
4Q12
544.1
110.3
127.2
77.2
112.3
971.0
Chg. %
1.4%
34.4%
-1.5%
16.3%
-1.8%
4.6%
2012
2,167.3
341.0
529.8
286.5
478.2
3,802.7
Chg. % 2011
2,083.0
263.1
545.8
233.2
191.9
3,317.0
4Q11
536.6
82.1
129.1
66.4
114.3
928.5
4.0%
29.6%
-2.9%
22.8%
149.2%
14.6%
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(R$ million and % Net Revenues)
Gross Profit and Revenues from Services to Suppliers
Gross Profit Revenues from Services to Suppliers Gross Profit Margin(%)
4Q11 4Q12 2012
45.0
38.6
150.6
204.7
10.6% 11.0%
10.7%
39.7
50.7
2011
123.9
163.7
10.2%
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(R$ million and % Net Revenues)
Operating Expenses - SGA
4Q11 4Q12 2012
55.7
256.6 7.0%
7.9% 7.9%
67.1
2011
204.5
7.3%
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(R$ million and % Net Revenues)
Ebitda and Ebitda Margin
4Q11 4Q12 2012
24.2
92.2
3.1% 2.9%
2.2%
18.8
2011
73.0
2.6%
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(R$ million and % Net Revenues)
Net Financial Expenses
4Q11 4Q12 2012
8.4
28.6
0.7% 0.9% 1.1%
6.3
2011
31.7
1.1%
10
(R$ million and % Net Revenues)
Net Profit
4Q11 4Q12 2012
8.1
40.6
1.0% 1.3%
0.9%
7.8
2011
26.4
0.9%
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Cash Flow Generated / (Used) in Operating Activities
Internal Cash Generation
Operating Assets Variation
Trade Accounts Receivable
Inventories
Suppliers
Other Items
Cash Flow (Used) in Investing Activities
Cash Flow Generated / (Used) by Financing Activities
Net Increase / (Decrease) in Cash
(R$ Million) 4Q12 Chg. % 2012 Chg. %
Summary of Cash Flow
4Q11 2011
56.9
18.2
38.7
(18.9)
(66.9)
174.5
(50.1)
(3.0)
(18.6)
35.2
259.4%
-1.1%
-
82.2%
6.0%
-10.4%
-150.3%
72.8%
-
-
8.9
89.4
(80.5)
(66.8)
(9.6)
62.5
(66.5)
(11.3)
28.8
26.4
-70.8%
33.2%
-120.6%
11.3%
69.5%
-7.0%
-
32.3%
-
135.1%
15.8
18.4
(2.6)
(106.1)
(71.2)
194.7
(20.0)
(11.2)
(2.5)
2.2
30.6
67.1
(36.5)
(75.3)
(31.6)
67.2
3.3
(16.7)
(2.7)
11.2
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* Average
(1) Average of Gross Revenues in the Quarter
(2) Average of COGS in the Quarter
(3) Average of COGS in the Quarter
Cash Cycle - Days *
Accounts Receivable (1)
Inventories (2)
Accounts Payable (3)
4Q11 4Q12
48.0
46.0
48.9
46.8
46.3
51.0
48.2
52.9
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Indebtedness:
Net Debt and Net Debt / Ebitda*
(R$ million)
2012
169.3
1.8x
2011
118.9
1.6x
* Ebitda = accumulated last 12 months
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(R$ million and % Net Revenues)
Capex
4Q11 4Q12 2012
3.7
10.8
0.5% 0.3% 0.3%
2.2
2011
9.3
0.3%
* Não estão incluídos os investimentos na Prodiet.
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Service Level
(Units served / Units Requested)
4Q11
89.3%
2012
87.8%
4Q12
88.3%
2011
89.3%
Logistics E.P.M.
(Errors per Million)
2012 4Q12 2011
114.0
4Q11
65.0
184.0
94.0
16
-20%
-10%
0%
10%
20%
30%
40%
Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12
Títu
lo d
o E
ixo
PFRM3 BZ Equity IBOV Index
34.9
7.4
Profarma vs Ibovespa - % 4Q12
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Company Analyst Phone number Email address
Analyst Coverage
Credit Suisse Marcel Moraes (55 11) 3841-6302 [email protected]
Banco Fator Daniel Utsch (55 11) 3049-9483 [email protected]
BTG Pactual João Carlos dos Santos (55 11) 3383-2384 [email protected]
Juliana Rozenbaum (55 11) 3073-3040 [email protected] Itaú BBA
Javier Martinez de Olcoz (55 11) 3048-6088 [email protected] Morgan Stanley
Andre Parize (55 11) 5171-5870 [email protected] Votorantim
Merrill Lynch Mauricio Fernandes (55 11) 2188-4236 [email protected]
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IR contacts
Max Fischer | Chief Financial and IR Officer
Beatriz Diez | IR Manager
Phone number: 55 (21) 4009-0276 | E-mail: [email protected] | www.profarma.com.br/ri