earnings release 1q08 presentation
TRANSCRIPT
1
Earnings Release 1T08
2Highlights For The Period
• Growth of 26.5% in consolidated Gross Revenue when compared to the same period
of the previous year, reaching R$ 702.6 million.
• Profarma’s market share reaches 11.8% in the 1Q08, 1.1 percentage points above the
share reached in the same period of the previous year.
• The adjusted EBITDA was of R$ 18.6 million, a 24.0% growth when compared to the R$
15.0 million posted in the 1Q07.
• Increase in the service level, reaching 91.2% in the 1Q08, a 1.2 percentage points
growth in relation to the 1Q07 and 0.3 percentage points in relation to the 4Q07.
• Price increase that occurred in March 31st was of 3.1% in average, 50% higher than
previous year.
3Gross Revenues Evolution
In R$ MM
555.3
740.4702.6
1Q07 4Q07 1Q08
4Gross Revenues Breakdown
In R$ MM
(R$ Million) 1Q08 1Q07 Chg. % 4Q07 Chg. %
Branded 503.0 374.0 34.5% 517.9 -2.9%
Generics 34.0 33.0 2.8% 46.8 -27.4%
OTC 119.5 99.0 20.7% 128.5 -7.0%
Health and Beauty Products 31.0 37.4 -17.1% 31.2 -0.8%
Other 15.1 11.9 27.1% 16.1 -5.8%
Total 702.6 555.3 26.5% 740.4 -5.1%
5Market Share (%)
Source: IMS
9.3 9.6 9.6
11.511.8
2004 2005 2006 2007 1Q08
6
In R$ MM
and as % Net Revenues
Gross Profit and Revenues
from Services to Suppliers
42.8
59.8 55.7
7.4
5.4
9.2
10.0%
10.8%
10.4%
1Q07 4Q07 1Q08
Gross Profit Revenues from Services to Suppliers Adjusted GP Margin (%)
7Operating Expenses
37.3
53.7
47.5
7.7%
8.4%
7.8%
1Q07 4Q07 1Q08
In R$ MM
and as % Net Revenues
EXPENSES: General and Administrative + Selling and Marketing + Logistics and Distribution
8Net Financial Expenses
3.1
9.2
5.6
0.6%
1.4%
0.9%
1Q07 4Q07 1Q08
In R$ MM
and as % Net Revenues
9Net Income
12.7
5.05.1
2.0%
0.8%1.1%
1Q07 4Q07 1Q08
In R$ MM
and as % Net Revenues
10Adjusted EBITDA and EBITDA Margin
15.0
26.2
18.6
3.1% 3.1%
4.1%
1Q07 4Q07 1Q08
In R$ MM
and as % Net Revenues
11Cash Flow
(R$ Million) 1Q08 1Q07 Chg. % 4Q07 Chg. %
Cash Flow (Used) / Generated in Operating Activities 5.7 (58.0) n.a. (6.2) n.a.
Internal Cash Generation 14.8 10.5 40.8% 14.3 3.5%
Operating Assets Variation (9.1) (68.5) -86.8% (20.4) -55.7%
Trade Note Receivable 29.9 (43.4) n.a. (30.5) n.a.
Inventories 19.3 (3.4) n.a. (59.1) n.a.
Suppliers (49.4) (19.1) 158.3% 81.6 n.a.
Other Items (8.8) (2.5) 252.7% (12.5) -29.4%
Cash Flow (Used) in Investing Activities (2.1) (0.9) 128.9% (2.7) -22.2%
Cash Flow (Used) / Generated by Financing Activities (34.4) 0.5 n.a. 52.8 n.a.
Net Increase (Decrease) in Cash (30.8) (58.4) -47.3% 43.9 n.a.
12Cash Cycle
3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08
Cash Cycle - Days* 49.3 53.4 62.5 69.6 67.8 64.3 68.8
Accounts Receivable (1) 45.2 50.0 54.6 53.1 50.9 51.7 50.7
Inventories (2) 33.1 44.7 43.4 47.2 41.3 48.6 47.9
Accounts Payable (3) 29.0 41.3 35.6 30.7 24.5 36.0 29.8
*Average
(1) Average of Gross Revenues in the Quarter (2) Average of COGS in the Quarter (3) Average of COGS in the Quarter
13Indebtedness
Net Debt (R$ MM) and Net Debt / Ebitda*In R$ MM
-4.1
124.8124.0
1.5-0.1
1.5
1Q07 4Q07 1Q08
* Ebitda = Accumulated last 12 months
14Capex
2.8
2.1
0.9
0.2% 0.3%0.4%
1Q07 4Q07 1Q08
In R$ MM
and as % Net Revenues
15Operating Indicators
Service Level
(units served / units requested)
Logistics E.P.M
(Errors per Million)
90.0%
90.9%
91.2%
1Q07 4Q07 1Q08
201.0
95.0 100.0
1Q07 4Q07 1Q08
16Share Performance
154
134
130
96
101
106
111
116
121
126
131
136
141
146
151
156
161
166
171
176
181
Ibovespa IGC Profarma
* 100 pts basis on 25/oct/2006
17Analyst Coverage
Buy
Alan CardosoFone: 55 21 2138-8465
[email protected] Corretora
Buy
Tufic Salem - Rafael Shin - Antonio Gonzalez52 55 5283-8952 / 8969 / [email protected]@credit-suisse.com
Credit Suisse
Buy
João Carlos dos Santos - Alexandre Pizano55 11 2188-4282 / 4316 / 4024
[email protected][email protected]
Merril Lynch
BuyVictor Luiz de Figueiredo Martins
Fone: 55 11 3175-7689 [email protected]
Safra
Hold
Renata Faber - Marcio Osako Fone: 55 11 5029-4542 / 4650
[email protected] [email protected]
Itau BBA
RecommendationAnalystFirm
18
Max Fischer
CFO and IRO
Beatriz Diez
IR Coordenator
Phone.: 55 (21) 4009 0276
E-mail: [email protected]
www.profarma.com.br/ir
IR Contacts: