1Q10 Earnings Release
May, 13th, 2010.
1Q10 Earnings Release
Highlights For The Period
• Gross revenue reached R$ 766.0 million, showing a 15.8% growth when comparing with the same period of the
previous year;
• Net profit of the Company increased 15.1% in relation to the same period of the previous year, reaching R$ 7.8
million, representing a net margin of 1.2%;
• A 7.8% reduction of the operating expenses, reaching 7.5% of the net operating revenue, representing a reduction
of 0.7 percentage point in relation with the same period of the previous year;
• Improvement of the service level, reaching 92.3%, an increase of 1.6 percentage point in relation to the same period
of the previous year when we reached 90.7%;
• Increase of the annual price occurred on March 31st, 2010 was of 4.5% in line with inflation accumulated in the past
12 months, being the second largest increase in the last four years.
3
Gross Revenues Evolution(R$ million)
1Q09 4Q09 1Q10
766.0
661.8
807.4
1Q10 Earnings Release
4
Gross Revenues Breakdown
1Q10 Earnings Release
(R$ Million)
Total
1Q10
511.7
51.6
148.4
26.8
27.6
766.0
1Q09
453.9
29.5
129.3
23.2
25.8
661.8
Chg. %
12.7%
74.6%
14.7%
15.4%
7.0%
15.8%
4Q09
546.3
50.8
157.1
26.2
27.1
807.4
Chg. %
-6.3%
1.6%
-5.5%
2.0%
1.9%
-5.1%
Branded
Generic
OTC
Health and Beauty Products
Hospitals and Vaccines
5
Market Share Evolution (%)
Source: IMS
9.6 9.6
11.511.7
10.9*9.9
11.6*
10.9*
2005 2006 2007 2008 2009 1Q09 4Q09 1Q10
*Excluding the similar’s effect
1Q10 Earnings Release
6
(R$ million and as % Net Revenues)
Gross Profit and Revenues from Services to Suppliers
1Q09 4Q09 1Q10
Gross Profit Revenues from Services to Suppliers Gross Profit Margin (%)
11.2% 11.0%10.4%
5.3
57.857.1
18.6
20.0
46.5
1Q10 Earnings Release
7
(R$ million and as % Net Revenues )
Operating Expenses
1Q09 4Q09 1Q10
48.145.9
50.6
8.2%7.4% 7.5%
1Q10 Earnings Release
8
(R$ million and as % Net Revenues)
Net Financial Expenses
1Q09 4Q09 1Q10
5.4
7.8
5.3
1.4%0.8% 0.8%
1Q10 Earnings Release
9
(R$ million and as % Net Revenues)
Net Profit
1Q09 4Q09 1Q10
7.86.7
15.4
1.2%
2.2%
1.2%
1Q10 Earnings Release
10
(R$ million and as % Net Revenues)
Ebitda and Ebitda Margin
1Q09 4Q09 1Q10
17.917.1
28.0
3.0%
4.1%
2,8%
1Q10 Earnings Release
11
CASH FLOW
1Q10 Earnings Release
(R$ Million) 1Q10
(43.9)
14.5
(58.4)
(1.8)
(24.2)
(36.4)
4.0
(1.5)
69.8
24.5
1Q09
36.6
11.4
25.2
51.5
8.3
(25.3)
(9.4)
(3.3)
(6.2)
27.1
Chg. %
-
27.0%
-
-
-
-44.2%
-
55.7%
-
-9.6%
4Q09
(19.2)
17.9
(37.1)
(25.1)
(81.8)
91.3
(21.6)
(3.6)
(9.9)
(32.6)
Chg. %
-128.6%
-19.1%
-57.3%
92.9%
70.5%
-
-
59.0%
-
-
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
12
Cash Cycle – Days *
Accounts Receivable (1)
Inventories (2)
Accounts Payable (3)
3Q06
49.3
45.2
33.1
29.0
4Q06
53.4
50.0
44.7
41.3
1Q07
62.5
54.6
43.4
35.6
2Q07
69.6
53.1
47.2
30.7
3Q07
67.8
50.9
41.3
24.5
4Q07
64.3
51.7
48.6
36.0
1Q08
68.8
50.7
47.9
29.8
2Q08
67.2
49.2
45.7
27.7
3Q08
61.8
47.0
42.5
27.7
4Q08
65.8
45.9
49.9
29.9
* Average
(1) Average of Gross Revenues in the Quarter (2) Average of COGS in the Quarter (3) Average of COGS in the Quarter
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
4Q09
52.7
41.1
49.6
38.0
1Q10
64.9
43.4
56.2
34.7
1Q10 Earnings Release
13
* Ebitda = Accumulated last 12 months
Indebtedness: Net Debt and Net Debt / Ebitda*
(R$ million)
1Q09 4Q09 1Q10
167.3
128.0118.1
1.6x
1.1x
1.5x
1Q10 Earnings Release
14
(R$ million and as % Net Revenues)
Capex
1Q09 4Q09 1Q10
1.5
3.3
3.7
0.6% 0.5%
0.2%
1Q10 Earnings Release
15
Service Level
(units served / units requested)
Logistics E.P.M.
(Errors per Million)
Operating Indicators
90.7%
93.0%
92.3%
1Q09 4Q09 1Q10
95.0
130.0
210.0
1Q09 4Q09 1Q10
1Q10 Earnings Release
16
Profarma vs Ibovespa 1Q10
103
112
60
80
100
120
140
12/30/09 01/09/10 01/19/10 01/29/10 02/08/10 02/18/10 02/28/10 03/10/10 03/20/10 03/30/10
Ibovespa Profarma
1Q10 Earnings Release
17
AnalystFirm
Analyst Coverage
Javier Martinez de Olcoz Cerdan
Phone: (1 212) 761-4542
E-mail: [email protected]
Morgan Stanley
Alexandre Pizano
Phone: (55 11) 2188-4024
E-mail: [email protected]
Merrill Lynch
Marcel Moraes
Phone: (55 11) 3841-6302
E-mail: [email protected]
Credit Suisse
Juliana Rozenbaum - Marcio Osako
Phone: (55 11) 3073-3035 / (55 11) 3073-3040
E-mail: [email protected]
E-mail: [email protected]
Itaú BBA
Iago Whately
Phone: (55 11) 3049-9480
E-mail: [email protected]
Banco Fator
1Q10 Earnings Release
Max FischerCFO and IR Director
Beatriz DiezIR Manager
Telephone,: 55 (21) 4009 0276E-mail: [email protected]
www.profarma.com.br/ir
IR Contacts