Apresentação 4 q13
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Apresentação 4 q13 Apresentação 4 q13 Presentation Transcript

  • 4Q13 Results Conference Call February 21, 2014
  • DISCLAIMER This presentation contains forward-looking statements regarding the prospects of the business, estimates for operating and financial results, and those regarding Cia. Hering's growth prospects. These are merely projections and, as such, are based exclusively on the expectations of Cia. Hering management concerning the future of the business and its continued access to capital to fund the Company’s business Plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the Brazilian economy and the industry, among other factors and risks disclosed in Cia. Hering’s filed disclosure documents and are, therefore, subject to change without prior notice.
  • AGENDA Highlights 4Q13 Operating Performance Outlook
  • HIGHLIGHTS 4Q13 AND 2013  Gross Revenues growth of 10.2% in the quarter and 12.6% in 2013;  EBITDA of R$137.7 million if 4Q13, 3.5% growth, and R$ 439.0 million in 2013, 7.8% growth;  Net income of R$ 101.7 million (+0.7%) in 4Q13 and R$ 318.2 million in 2013 (+2.3%);  Hering Store Network:  Addition of 77 stores to the network, ending the year with 592 stores;  10.1% sales growth in the quarter and in the year, reaching R$ 584.0 million and R$1,572.0 million respectively  70 stores openings guidance – 662 until the end of 2014  Hering Kids:  Stores network expansion, with 43 openings in 2013  Stores openings guidance of 30 stores – 100 until the end of 2014 4
  • 4Q13 OVERVIEW Revenues per Brand (R$ million) Revenues per Channel (R$ million) 2.6% 2012 R$ 1,335.3 2013 +12.0% 16.8% 16.8 R$ 1,495.7 226.6 19.5 R$ 158.5 +25.5% R$ 199.1 R$ 141.5 +10.9% R$ 156.9 17.7% 17.7 652.1 232.5 22.7 767.5 11.6% 11.6 834.1 2012 R$ 97.0 +5.0% 930.8 2013 R$ 101.8 *Domestic Market Multibrand Retail Distribution Network Franchise Webstore Own Stores EBITDA (R$ million) 2012 2013 % Domestic Market 2013 % Growth Multi-brand Retail 17,119 clients 17,898 clients 47.6% 11.6% Franchises 556 Stores 672 Stores 39.3% 17.7% Webstore 3 stores 3 stores 1.2% 16.8% Own Stores 65 stores 71 stores 11.9% 2.6% Channel 27.3% 26.1% 7.8% 439.0 407.4 2012 2013 EBITDA EBITDA Margin 5
  • STORES NETWORKS Stores Evolution 760 17 80 638 530 16 76 17 78 70 1 27 1 5 592 515 432 2011 Hering Store 1 2012 Hering Kids PUC 2013 dzarm. Total Foreign Market In the domestic market, the Company ended 2013 with 592 Hering Stores, 80 PUC, 70 Hering Kids and 1 dzarm store. 6
  • HERING STORE NETWORK PERFORMANCE Hering Store Network (Sell Out R$ Millions) Promotional Campaigns +10.1% +77 stores -0.6% 1,428.1 135 135 2012 Expansão Expansion SSS 1,572.0 2013 SSS growth acceleration to +1.1% in 4Q13, ending the year with a 0.6% in comparison to 2012. In the quarter was promoted the “Anticipate your Christmas” campaign, stimulating sales both before and after christmas. 7
  • AGENDA Highlights 4Q13 Operating Performance Outlook
  • SALES PERFORMANCE 12.6% 1,793.7 27.1 2,019.4 31.8 12.5% 17.3% 1,987.6 10.2% 1,766.6 608.9 552.8 7.2 545.6 8.5 10.0% 600.4 18.1% 4Q12 4Q13 Domestic Market 2012 2013 Foreign Market Gross Revenues reached R$ 2.0 billion in 2013, with growth of 10.2% and 12.6% in 4Q13 and in the year, respectively. 9
  • GROSS PROFIT AND GROSS MARGIN 47.3% 45.9% 46.3% 44.9% 6.5% 46.7% 45.5% 11.7% 679.2 212.1 4Q13 45.2% 758.5 225.9 4Q12 46.2% Gross Profit 2012 Gross Margin 2013 Cash Gross Margin Gross margins of 45.2% (0.3 p.p.) in 2013 and 44.9% (-1.4 p.p.) in 4Q13, due to higher costs pressure, lower level of fiscal incentives and challenging sales scenario. 10
  • EBITDA AND EBITDA MARGIN 29.0% 27.4% 27.3% 26.1% 7.8% 407.4 439.0 3.5% 133.0 137.7 4Q12 4Q13 EBITDA 2012 2013 EBITDA Margin EBITDA of R$ 137.7 million in 4Q13, totalling R$ 439.0 million in the year with EBITDA margin of 26.1% (-1.2 p.p.), mainly due to the drop in gross margin. 11
  • NET INCOME AND NET MARGIN 22.1% 20.2% 20.9% 18.9% 311.0 101.0 4Q12 0.7% 2.3% 318.2 101.7 4Q13 Net Income 2012 2013 Net Margin Net income of R$ 318.2 million (+2.3%) with net margin of 18.9% (-2.0 p.p.) in the year, as a consequence of the reduction in EBITDA margin and higher income and social contribution taxes.
  • CAPEX Per Activity ( R$ millions) 13.7% 63.5 6.0 1.8 72.2 8.4 2.6 26.6 22.3 23.9 21.7 2.5 0.3 8.8 2.6 1.3 7.8 33.4 34.6 2012 2013 -9.2% 12.3 10.0 4Q12 4Q13 Industry IT Others Stores CAPEX in 2013 totalled R$ 72.2 million, with a 13.7% growth in the year, mainly due to the increase in IT investments. 13
  • CASH FLOW Cash Flow - Consolidated (R$ thousand) 4Q12 4Q13 Chg. 2012 EBITDA Non cash items Current Income tax and Social Contribution Working Capital Investment (Increase) in trade accounts receivable (Increase) decrease in inventories Increase (decrease) in accounts payable to suppliers Increase (decrease) in taxes payable Others CapEx Free Cash Flow 132,982 1,680 (33,340) (95,442) (106,716) 7,352 5,627 (248) (1,457) (23,893) (18,013) 137,666 1,214 (34,752) (110,814) (104,859) 10,956 (18,411) 16,204 (14,704) (21,691) (28,377) 4,684 (466) (1,412) (15,372) 1,857 3,604 (24,038) 16,452 (13,247) 2,202 (10,364) 407,396 4,236 (95,911) (43,506) (67,615) 6,361 30,130 (16,895) 4,513 (63,489) 208,726 2013 438,994 4,701 (116,654) (131,139) (48,805) (84,573) (1,550) (1,132) 4,921 (72,217) 123,685 Chg. 31,598 465 (20,743) (87,633) 18,810 (90,934) (31,680) 15,763 408 (8,728) (85,041) * Dividends distribution: R$ 49.9 million were destined as a proposal to be distributed through the approval of the General Shareholders Meeting. Free cash flow in the year reached R$ 123.7 million, a decrease of R$ 85 million in comparison to 2012, as a function of the increase in EBITDA compensated by the increases in inventory levels and higher income and social contribution taxes increase. 14
  • DIVIDENDS 1.8 300000.0 1.59 1.6 250000.0 1.4 1.05 200000.0 1.2 0.84 1 0.84 150000.0 0.64 0.8 261,921 0.6 100000.0 171,602 138,504 0.4 50000.0 82,446 0.2 34,558 0 - 2009 2010 2011 Dividends (R$ Thousands) 2012 2013* $/Share *Considering the amount of R$ 49,993 thousand destined to be approved by the General Shareholder´s Meeting in 04/24/2014 as dividends payment The dividends and interest on capital payments proposed for 2013 totalled R$ 138.5 million, in line with the year´s free cash flow. 15
  • AGENDA Highlights 4Q13 Operating Performance Outlook
  • OUTLOOK  Challenging scenario in 1H14, both in sales and margins  Hering brand:  New strategy should begin generating results starting in 2H14  Opening of 70 Hering Stores in 2014  Market share increase in the multi-brand retail and in the north and northeast regions  Hering For You – Launching in the winter collection and opening of the first store in the 1st semester  Children Market – Focus on the Hering Kids network expansions (30 openings in 2014)  New dzarm.´s business plan under development  Besides the short term challenges, we remain optimistic with the potential of our brands and the new management structure should allow us to accelerate growth in our current brands as well as developing new growth platforms 17
  • INVESTOR RELATIONS TEAM Fabio Hering – CEO Frederico Oldani – CFO and IRO Daniel Popovich – IR Analyst Tel. +55 (11) 3371-4867 E-mail: ri@hering.com.br Website: www.ciahering.com.br/ri