Brph apresentação call 4 t13 (eng)
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Brph apresentação call 4 t13 (eng) Presentation Transcript

  • 1. 4Q13 Conference Call Presentation March 27, 2014
  • 2. • Gross revenues of R$3.5 billion, an increase of 14.4% over 2012. • Gross Margin of 27.9%, over gross revenues • Total SSS of 11.5%, with 6.8% for mature stores • Adjusted EBITDA of R$150.9 million, with adjusted EBITDA margin of 4.3% • Adjusted net loss of R$15.9 million. • With the opening of 65 new owned stores and 120 franchises, we ended 2013 with 1,218 stores. Operational & Financial
  • 3. 259 Owned stores 127 Owned stores 154 Owned stores 485 Franchises 193 Owned stores 733 Owned stores 485 Franchises 1,218 stores REGIONS Owned stores North 132 Northeast 261 Midwest 147 Southeast South 193 15 3 122 20 15 33 16 182 9 70 127 5 11 5 Distribution centers 98 7 National Footprint
  • 4.  65 openings in 2013 (18 in 4Q13) 40 closings (13 in 4Q13)  38.4% of owned stores not yet at mature stage 132 149 154 210 203 193 118 123 127 248 253 247 47 18 27 13 2012 Organic Growth Closing 9M13 Organic Growth Closing 2013 8.9% 11.3% 16.2% 63.6% Stores open less than 12 months Stores open 12 to 24 months Stores open 24 to 36 months Stores open more than 36 months
  • 5. • 120 openings in 2013 (43 in 4Q13) • Accelerated expansion strategy • Gain of scale (for franchisees and Brasil Pharma) 361 358 364 359 355 352 369 388 406 433 458 485 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13
  • 6. 843.7 975.4 3,094.3 3,540.5 4Q12 4Q13 2012 2013 12.0% 10.8% 9.8% 10.7% 14.1% 5.2% 4.3% 5.3% 6.5% 10.3% 4Q12 1Q13 2Q13 3Q13 4Q13 SSS Total SSS mature stores (36 months or older) 14.1% 11.5% 8.2% 6.8% 2012 2013 Healthy growth, above inflation
  • 7. 38.4% 37.9% 37.6% 38.4% 40.3% 16.4% 16.5% 16.9% 15.8% 13.9% 45.2% 45.6% 45.5% 45.8% 45.8% 4Q12 1Q13 2Q13 3Q13 4Q13 Non-medicines Generic Medicine Branded medicine 37.4% 38.8% 16.7% 15.6% 45.9% 45.6% 2012 2013 Generic penetration in medicine sales 30.7 35.8 4Q12 4Q13 30.5 34.5 2012 2013
  • 8. 265.3 232.9 266.0 281.5 256.8 31.5% 29.0% 31.5% 30.7% 26.3% • Promotional activities • Retraction of generic penetration in medicines sale 265.3 232.9 266.0 281.5 208.7 31.5% 29.0% 31.5% 30.7% 21.4% 4Q12 1Q13 2Q13 3Q13 4Q13 948.0 1,037.2 30.6% 29.3% 2012 2013
  • 9. 156.8 150.0 166.6 174.6 188.5 156.8 188.5 550.4 679.8 18.6% 18.7% 19.7% 19.1% 19.3% 18.6% 19.3% 17.8% 19.2% 4Q12 1Q13 2Q13 3Q13 4Q13 4Q12 4Q13 2012 2013 53.1 48.1 51.0 52.1 53.0 53.1 53.0 206.5 204.2 6.3% 6.0% 6.0% 5.7% 5.4% 6.3% 5.4% 6.7% 5.8% 4Q12 1Q13 2Q13 3Q13 4Q13 4Q12 4Q13 2012 2013
  • 10. e issuance expenses - - - (2,173) (2,173) - (108) (684) - - (1,258) (1,942) (2,802) (5,432) d to Santana insurance - - - - - (9,144) 12,509 gration/Downsizing (1,763) - - (3,898) (5,661) (5,406) (13,314) ction - Farmais - - - - - - (3,869) -off - - 35,000 - 35,000 - - non-recoverable taxes - - - (16,291) (16,291) - - ce SAP - - - (19,446) (19,446) - - - - - (4,809) (4,809) - - d Advisory - - - (13,502) (13,502) - - (147) - - (1,575) (1,722) (1,118) (1,381) g SG&A (2,594) - 35,000 (62,952) (30,546) (18,470) (11,596) Plan (SOP) (2,816) (2,882) (3,205) (2,888) (11,792) (1,415) (10,016) ais Econômica/Beauty'in - - - (37,153) (37,153) - - te-off - - - (42,392) (42,392) - - 00) 1Q13 2Q13 3Q13 4Q13 2013 4Q12 2012 2013 4Q12 2012g Income/(expenses) (R$'000) 1Q13 2Q13 3Q13 4Q13 IPO /Debenture issuance expenses - - - (2,173) (2,173) - M&A/Branding (684) - - (1,258) (1,942) (2,802 Income related to Santana insurance - - - - - (9,144 Platforms Integration/Downsizing (1,763) - - (3,898) (5,661) (5,406 Notice of Infraction - Farmais - - - - - - Earn-out write-off - - 35,000 - 35,000 - Impairment on non-recoverable taxes - - - (16,291) (16,291) - Opening balance SAP - - - (19,446) (19,446) - Stores closing - - - (4,809) (4,809) - Consulting and Advisory - - - (13,502) (13,502) - Other (147) - - (1,575) (1,722) (1,118 Non recurring SG&A (2,594) - 35,000 (62,952) (30,546) (18,470 Stock Option Plan (SOP) (2,816) (2,882) (3,205) (2,888) (11,792) (1,415 Impairment Mais Econômica/Beauty'in - - - (37,153) (37,153) - Inventory write-off - - - (42,392) (42,392) - COGS (R$'000) 1Q13 2Q13 3Q13 4Q13 2013 4Q12 2013 4Q12Non recurring Income/(expenses) (R$'000) 1Q13 2Q13 3Q13 4Q13
  • 11. 1 - Portion relating to commercial establishments amortization and brand amortization. 2 - Due to adjustments in non-recurring expenses and revenues during 2012, in 1Q12 we excluded the effects of Income and Social Contribution Taxes on the insurance coverage for Sant’ana’s distribution center, which was destroyed by a fire in December 2011. 43.4 16.1 178.9 150.9 5.1% 1.6% 5.8% 4.3% 4Q12 4Q13 2012 2013 2012 Proforma Net income (loss) (12,272) (188,247) 14,464 (151,380) % Net margin -1.5% -19.3% 0.5% -4.3% (-) Non recurring expenses 18,470 62,952 11,596 30,546 (-) Impairment Mais Economica/Beauty'in - 37,153 - 37,153 (-) Inventories (COGS) - 42,392 - 42,392 (-) SOP expenses 1,415 2,888 10,015 11,792 (-) D&A Commercial establishments¹ 1,234 2,971 24,096 13,565 (-) Income tax and social contrib. from non recurring expenses²- - 9,940 - Adjusted Net Income (loss) 8,847 (39,890) 70,110 (15,932) % Adjusted net margin 1.0% -4.1% 2.3% -0.5% Net Income reconciliation (R$'000) 4Q12 4Q13 2013
  • 12. Cash position and indebtedness (R$'000) 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 (+) Loans and financing 149,124 177,049 169,079 160,228 247,170 209,490 Short term 43,953 83,229 44,864 41,694 150,963 124,507 Long term 105,171 93,820 124,215 118,534 96,207 84,983 (+) Debentures 260,759 253,642 258,937 253,964 260,704 549,809 Short term 12,461 5,237 10,427 5,348 11,982 15,249 Long term 248,298 248,405 248,510 248,616 248,722 534,560 (+) Accounts payable for investment acquisition 333,591 345,333 264,430 232,581 179,652 147,837 Short term 97,971 99,711 82,833 81,986 82,681 70,300 Long term 235,620 245,622 181,597 150,595 96,971 77,537 (=) Total Indebtedness 743,474 776,024 692,446 646,773 687,526 907,136 Short term (%) 20.8% 24.2% 19.9% 19.9% 35.7% 23.2% Long term (%) 79.2% 75.8% 80.1% 80.1% 64.3% 76.8% (-) Cash and cash equivalents (404,783) (368,751) (183,870) (162,205) (213,132) (405,914) (=) Net Debt 338,691 407,273 508,576 484,568 474,394 501,222 Net debt/Adjusted EBITDA (LTM) 1.9 X 2.1 X 2.7 X 2.5 X 2.5 X 3.3 X
  • 13. 1569 11 52 26 58 DC/Logistics CapexOthersReform SAP/ITOrganic growth Working capial 4Q12 3Q13 4Q13 Accounts receivable 23 5 6 Inventories 95 112 107 Suppliers 58 56 77 Working capital in days 60 62 36
  • 14. 1- The variation in working capital includes the change in accounts receivable, inventories and suppliers. Cash flow Statement (R$'000) 4Q12 4Q13 2012 2013 EBT (13,330) (174,859) 13,359 (123,822) (+) Depreciation and amortization 20,815 19,872 62,542 72,120 (+/-) Others (22,016) 72,173 32,267 58,008 Operating cash generation (14,531) (82,814) 108,168 6,306 (+/-) Change in working capital¹ 5,770 114,272 (208,285) 150,687 (+/-) Change in other assets and liabilities (26,678) (25,344) (52,139) (132,936) Cash consumption (20,909) 88,928 (260,424) 17,751 Income Tax & Social Contribution payed 4,119 2,511 (12,406) (3,587) Net cash generated by operating activities (31,321) 8,625 (164,662) 20,470 (-) Capex from operations (38,849) (50,405) (135,224) (155,637) (-) Acquisitions (7,693) (15,311) (356,051) (129,604) Net Cash from investing activities (46,542) (65,716) (491,275) (285,241) (+/-) Loans and financing 41,344 249,873 279,957 300,964 (+/-) Equity funding / Dividends 487 - 481,176 970 Net Cash from financing activities 41,831 249,873 761,133 301,934 Change in cash and cash equivalents (36,031) 192,782 105,196 37,163 Cash and cash equivalents - opening balance 404,783 213,132 263,555 368,751 Cash and cash equivalents - closing balance 368,751 405,914 368,751 405,914
  • 15.  5 Big acquisitions: • Rosario Distrital • Guararapes • Mais Economica • Sant’Ana • Big Benn  Strong organic growth/market consolidation  Leadership position in 4 out 5 regions in Brazil  Financing: IPO/ 1st Debenture/ F-ON  Accelerated expansion  Centralized BackOffice (2012)  Centralized Procurement (2013)  Logistics optimization : 4 New Distribution Centers  Systems Standardization : Start of SAP Implementation  Brand repositioning  Stores renovation/Mix optimization  Big Ben as a separated business unit  Focus on processes  Focus in Cash generation  WC Management  Slowdown in organic growth  Reduced investments  Optimized corporate structure  Processes’ redesign  Stores’ profitability  Mais Economica Repositioning  Harvest the benefits of integrations done in 2012 and 2013
  • 16. José Ricardo is our Chief Executive Officer and our Investor Relations Officer. From December 2013 to March 2014 he served as our Vice President of Strategy and Finance. Before joining Brasil Pharma, José Ricardo worked for 11 years at Aché, one of the leading industries in the Brazilian pharmaceutical market, where he held the position of Chief Executive Officer from 2006 to 2013 André has served as our Chief Executive Officer from November 2009, date of the foundation of the Company, until March 2014. He is also a partner at BTG Pactual. Previously, he served as Chief Financial Officer of Grupo Los Grobo and was one of the founders of PDG Realty S.A. Empreendimentos e Participações, where he served as a private equity officer
  • 17. Still a separated business unit  Separated Administration  Duplicated structures/expenses  Managed by the former owner Commercial BackOffice Operations        Integration in course:  Continuous improvement. Synergies to be captured in the years to come
  • 18.  BackOffice Integration (SAP schedule) “Go live” Rosário “Go live” Santana “Go live” Farmais “Go live” Mais Economica “Go live” Big Ben/SSC Integration  Commercial/Logistics Integration • System standardization in Rosario, Santana and Mais Economica: logistics efficiency and better management control  Benefits from an Integrated System • Integrated Financing/Accounting management • Process standardization • Better integration capacity • Faster and more precise information • Higher quality information to shareholders      SIG6 Gestao Procfit Proteus 
  • 19. Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Sep-13 Oct-13 Nov-13 Dec-13 Brasil Pharma IBOV Source: Bloomberg, as of December 31st, 2013. Company’s IPO on June 24, 2011. BPHA3 31.12.13 Market closure Shares outstanding 256,384,419 Price (R$/share) 6.76 Annual Performance -53.1% Ibovespa Index -15.5% Perfomance since IPO¹ -21.6% Ibovespa Index -15.5% Market Cap (R$ Bn) 1.7 Average daily trading volume in 2013 (R$ million) 10.5