earnings release 1q09 presentation
TRANSCRIPT
1Q09 Earnings Release
Tuesday, May, 5th, 2009.
2
Highlights For The Period
• For the third quarter in a row, a generation of positive operating cash flow reaching R$ 36.6 million in this
quarter, 6.5% of the net operating revenue.
• Net debt dropped in 19.2%, R$ 28.7 million, in relation to the previous quarter, reducing the Company’s net
debt / Ebitda ratio to 1.6x, coming from 1.9x (december 2008).
• For the fifth quarter in a row we show a reduction of the accounts receivables terms, in 3.5 days, reaching
42.4 days, the lowest level since the year of 2006.
• For the second quarter in a row an adjusted gross margin recovery (added to revenues from services to
suppliers) reaching 11.2% in the 1Q09, 0,2 percentage point above the gross margin of the 4Q08, and also of
the 1Q08.
• The annual price increase which occurred on March, 31st, 2009 was of 5.9%, 90% above the one registered
in the previous year.
• The ebitda was of R$ 17.1 million, maintaining the ebitda margin in line with the same period of the
previous year in 3.0% of the net operating revenue.
• Profarma announced to the market on April, 3rd, 2009, an additive to the company’s share repurchase
program, increasing the maximum quantity of the shares to be acquired from 1.062.500 common shares to
1.700.000 shares.
3
Gross Revenues Evolution
In R$ MM
700.9
714.9
661.8
1Q08 4Q08 1Q09
4
Gross Revenues Breakdown
(R$ Million) 1Q09 1Q08 Chg % 4Q08 Chg %
Branded 453.9 501.8 -9.6% 489.9 -7.4%
Generics 29.5 33.9 -12.9% 41.5 -28.8%
OTC 129.3 119.2 8.5% 127.6 1.4%
Health and Beauty 23.2 30.9 -25.0% 31.4 -26.3%
Hospitals + Vaccines 25.8 15.1 71.0% 24.4 5.8%
Total 661.8 700.9 -5.6% 714.9 -7.4%
5
Market Share (%)
Source: IMS
9.39.6 9.6
11.5 11.7 11.8
10.9
9.9
2004 2005 2006 2007 2008 1Q08 4Q08 1Q09
In R$ MM
and as % Net Revenues
6
Gross Profit and Revenues
from Services to Suppliers
Gross Profit Revenues from Services to Suppliers Adjusted GP Margin (%)
59.751.0
57.8
5.37.4
16.5
1Q08 4Q08 1Q09
11.0% 11.0%11.2%
7
Operating Expenses
In R$ MM
and as % Net Revenues
EXPENSES: General and Administrative + Selling and Marketing + Logistics and Distribution
47.7 48.145.9
7.8% 7.9%8.2%
1Q08 4Q08 1Q09
8
Net Financial Expenses
In R$ MM
and as % Net Revenues
5.0
10.0
7.8
0.8%
1.6%1.4%
1Q08 4Q08 1Q09
9
Net Income
In R$ MM
and as % Net Revenues
6.56.7
9.4
1.1%1.2%
1.5%
1Q08 4Q08 1Q09
Adjusted EBITDA and EBITDA Margin
10
In R$ MM
and as % Net Revenues
17.1
21.4
18.1
3.0% 3.0%
3.5%
1Q08 4Q08 1Q09
11
Cash Flow
CASH FLOW
(R$ Million) 1Q09 1Q08 Chg. % 4Q08 Chg. %
Cash Flow Generated / (Used) in Operating Activities 36.6 5.7 542.1% 10.6 245.3%
Internal Cash Generation 11.4 14.8 -22.7% 10.7 6.2%
Operating Assets Variation 25.2 (9.1) - (0.1) -
Trade Accounts Receivable 51.5 29.9 72.4% 43.8 17.6%
Inventories 8.3 19.3 -56.9% (18.7) -
Suppliers (25.3) (49.4) 48.9% (6.9) -267.5%
Other Items (9.4) (8.8) -6.7% (18.4) 48.9%
Cash Flow (Used) in Investing Activities (3.3) (2.1) -57.1% (4.2) 21.4%
Cash Flow Generated / (Used) by Financing Activities (6.2) (34.4) 82.0% (15.3) 59.5%
Net Increase / (Decrease) in Cash 27.1 (30.8) - (8.8) -
(R$ Million) 1Q09 1Q08 Chg. % 4Q08 Chg. %
Cash Flow Generated / (Used) in Operating Activities 36.6 5.7 542.1% 10.6 245.3%
Internal Cash Generation 11.4 14.8 -22.7% 10.7 6.2%
Operating Assets Variation 25.2 (9.1) - (0.1) -
Trade Accounts Receivable 51.5 29.9 72.4% 43.8 17.6%
Inventories 8.3 19.3 -56.9% (18.7) -
Suppliers (25.3) (49.4) 48.9% (6.9) -267.5%
Other Items (9.4) (8.8) -6.7% (18.4) 48.9%
Cash Flow (Used) in Investing Activities (3.3) (2.1) -57.1% (4.2) 21.4%
Cash Flow Generated / (Used) by Financing Activities (6.2) (34.4) 82.0% (15.3) 59.5%
Net Increase / (Decrease) in Cash 27.1 (30.8) - (8.8) -
12
Cash Cycle
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
Accounts Payable (3) 29.0 41.3 35.6 30.7 24.5 36.0 29.8 27.7 27.7 29.9
Cash Cycle - Days *
Accounts Receivable (1)
Inventories (2)
*Average
(1) Average of Gross Revenues in the Quarter
(2) Average of COGS in the Quarter
(3) Average of COGS in the Quarter
3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08
67.9
42.4
54.0
28.5
1Q09
13
Net Debt (R$ MM) and Net Debt / Ebitda
Indebtedness
In R$ MM
* Ebitda = Accumulated last 12 months
124.8120.7
149.4
1Q08 4Q08 1Q09
1.61.5
1.9
14
Capex
In R$ MM
and as % Net Revenues
4.2
3.3
2.1
0.3%0.6%0.7%
1Q08 4Q08 1Q09
15
Service Level
(units served / units requested)Logistics E.P.M
(Errors per Million)
Operating Indicators
91.2%
90.2%
90.7%
1Q08 4Q08 1Q09
100.0
83.0
95.0
1Q08 4Q08 1Q09
16
Share Performance
* 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
17
Analyst Coverage
Alexandre Falcão - Flávio Queiroz
Telephone: (55 11) 3048-6270 / (55 11) 3048-6196
E-mail: [email protected]
E-mail: [email protected]
Morgan Stanley
Marcel Moraes - Thais Pinho
Telephone: (55 11) 3841-6302 / (55 11) 3841-6341
E-mail: [email protected]
E-mail: [email protected]
Credit Suisse
João Carlos dos Santos - Alexandre Pizano
Telephone: (55 11) 2188-4316 / (55 11) 2188-4024
E-mail: [email protected]
E-mail: [email protected]
Merril Lynch
Renata Faber - Marcio Osako
Telephone: (55 11) 3073-3017 / (55 11) 3073-3040
E-mail: [email protected]
E-mail: [email protected]
Itaú BBA
AnalystCompany
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