06 30-2012 - 2 q12 - conference call presentation

570 views

Published on

Published in: Business
  • Be the first to comment

  • Be the first to like this

06 30-2012 - 2 q12 - conference call presentation

  1. 1. | Apresentação do Roadshow Conference Call 2Q12 1
  2. 2. Important DisclaimerStatements regarding the Company’s future business prospects and operating income projections are mere estimatesand projections and, as such, are subject to several risks and uncertainties, including, but not limited to, marketconditions, domestic and international economic performance in general and in the Company’s operating sector. Suchrisks and uncertainties cannot be controlled or sufficiently forecast by the Company’s management and may significantlyaffect its perspectives, estimates and projections. Statements regarding future perspectives, projections and estimates donot represent and may not be construed as a performance guarantee. Operating information contained herein, as well asinformation not directly derived from financial statements, has not been subject to audit or special review by theCompanys independent auditors, may involve assumptions and estimates adopted by the management and be subject tochanges. 2
  3. 3. 2Q12 HighlightsNet Net Revenue increased by 31.0% in 2Q12, reaching R$199.5 millionRevenueGross Profit Gross Profit reached R$ 89.9 million, 36.9 % growth and 45.1% marginEBITDA EBITDA totaled R$ 34.6 million, increase of 22.4% and 17.4% marginNet Profit R$25.8 million net profit, with 12.9% margin and growth of 7.2% Opening of 13 stores in Brazil: 4 owned stores – 1 Arezzo and 3 Schutz; 9 franchises: 5 Arezzo andExpansion 4 Schutz. Expansion of 4 existing stores: 2 owned and 2 franchises, adding 212 sq m. 3
  4. 4. Company GrowthGross Revenues – (R$ million)The Company’s Gross Revenues amounted to R$258.7 million in the second quarter of 2012,a 33.4% growth when comparing with 2Q11 4
  5. 5. Gross Revenue Breakdown by Channel –Domestic MarketGross Revenue by channel – Domestic Market (R$ million) 29.2% 450.3 6.5 348.6 35.3% 78.4% 104.7 249.0 2.8 58.7 20.4% 184.0 3.0 129.8 89.3% 107.8 16.7% 60.2 1.0 31.8 22.6% 74.0 60.4 209.3 23.1% 179.4 90.8 111.8 2Q11 2Q12 1H11 1H12 Franchise Multi-brand Owned Stores Others¹ SSS Sell-out (owned stores) 19.2% 11.2% 15.6% 11.6% SSS Sell-in (franchises) 24.2% 14.5% 19.1% 10.4% Strong growth, especially for Owned Stores that increased by 89.3% in 2Q12. The good SSS of Owned Stores and Franchises is driven by good product mix results and solid winter collection sell-through. ¹ Other: Growth of 211.1% in 2Q12 and of 136.9% in 1H12. 5
  6. 6. Gross Revenue Breakdown by Brand –Domestic MarketGross Revenues by brand – Domestic Market (R$ million) 29.2% 450.3 348.6 19.8 35.3% 249.0 11.8 145.0 50.2% 96.5 184.0 11.8 62.7% 18.8% 7.7 81.9 50.4 285.6 23.4% 240.3 125.9 155.3 2Q11 2Q12 1H11 1H12 Arezzo Schutz Others¹ Strong growth of 35.3% in 2Q12, specially for the Schutz brand, whose gross revenue growth stood by 62.7% in 2Q12 and by 50.2% in 1H12. ¹ Other: Alexandre Birman’s and Anacapri’’s Gross Revenue: growth of 52.0% in 2Q12 and of 67.1% in 1H12. 6
  7. 7. Distribution Channel Expansion Owned Stores and Franchises Expansion 26.0% 13.6% 22.6 Franchises 295 . 18.8% Owned Stores¹ 19 . Multi Brands² 878 18.0 15.8 351 13.3 +51 Franchises 6 300 273 +27 50 Owned Stores¹ 22 238 +35 31 25 Multi Brands² 1,551 15 269 301 Owned Stores 1 223 248 Multi Brands² 16 2Q09 2Q10 2Q11 2Q12 Owned Stores 8 Multi Brands² 767 Franchises Owned Stores Total m² The Company ended 2Q12 with 351 stores and sales area expansion of 26.0% comparing with the same period of the previous yearNote: area given in thousand of square meter (sq m)¹ Includes 5 outlets with total area of 1,334 sq m² Domestic Market 7
  8. 8. Gross Profit and EBITDAGross Profit (R$ million) EBITDA (R$ million) 45.1% 43.5% 18.6% 43.2% 42.0% 17.4% 16.9% 28.6% 13.7% 157.1 36.9% 122.2 0.6% 22.4% 89.9 49.0 49.3 65.7 34.6 28.3 2Q11 2Q12 1H11 1H12 2Q11 2Q12 1H11 1H12 Gross Profit Gross Margin EBITDA EBITDA MarginGross margin expansion of 1.9 p.p., due to the increased presence of Owned Stores in thechannel mix. Excluding the 1Q12 non-recurring effect EBITDA would be R$ 57.3 with 15.9%margin 8
  9. 9. Net IncomeNet Income (R$ million) 15.8% 12.9% 13.3% 10.1% 7.2% -5.6 38.8 36.6 24.0 25.8 2Q11 2Q12 1H11 1H12 Net Income Net MarginCompany´s Net Income totaled R$ 25.8 million, with 12.9% margin in 2Q12. Excluding non-recurring impact in 1Q12, Net Income would have reached R$ 41.9 million with 8.1% growth 9
  10. 10. Cash GenerationOperating Cash Generation (R$ thousand) Growth or Growth or Cash flows from operating activies 2Q11 2Q12 1H11 1H12 spread spread Income before income taxes 30,345 33,695 3,350 51,666 49,331 (2,335) Depreciation and amortization 961 1,749 788 1,840 3,166 1,326 Others (4,395) (1,518) 2,877 (6,263) (5,647) 616 Decrease (increase) in current assets / liabilities 22,815 16,544 (6,271) 10,747 26,519 15,772 - Trade accounts reveivable 42,262 22,801 (19,461) 23,896 28,795 4,899 Inventories (3,114) (108) 3,006 (18,837) (8,687) 10,150 Suppliers (13,629) (12,798) 831 8,528 6,042 (2,486) Change in other current assets and liabilities (2,704) 6,649 9,353 (2,840) 369 3,209 Change in other non current assets and liabilities (908) (928) (21) (1,171) (1,628) (457) Tax and contributions (5,974) (11,652) (5,678) (8,340) (11,652) (3,312) Net cash generated by operating activities 42,844 37,890 (4,955) 48,479 60,089 11,610 Net cash generated from operating activities totaled R$ 37.9 million, with a slightly stretch on the balance of accounts payable due to the greater importance of owned store channel in the sales mix. 10
  11. 11. Capital Expenditure (CAPEX) andIndebtednessCAPEX (R$ million) Indebtedness (R$ million) 31.8 0.5 Indebtedness 2Q11 1Q12 2Q12 334.7% 10.3 Cash 199,339 166,741 205,819 - Total indebtedness 32,276 30,844 51,117 14.5 Short term 12,547 14,059 25,548 304.2% 0.3 As % of total debt 38.9% 45.6% 50.0% 7.3 Long term 19,729 16,785 25,569 6.8 21.0 3.6 As % of total debt 61.1% 54.4% 50.0% 0.5 - 2.5 0.2 7.4 Net debt (167,063) (135,897) (154,702) 1.2 4.3 - 2.1 EBITDA LTM 104,201 111,662 118,007 2Q11 2Q12 1H11 1H12 Net debt /EBITDA LTM -1.6x -1.2x -1.3x Stores Corporate Others¹Arezzo&Co invested R$ 14.5 million in 2Q12, of which R$ 7.4 million in stores, including 4openings and 2 stores expansions, and 6 other refurbishments not yet inaugurated. Corporateinvestments are mainly related to the new Company’s head office, in Campo Bom - RS¹ Other: Increase of 17.2% in 2Q12 and of 6.0% in1H12 compared with the same period of the previous year. 11
  12. 12. ContactsCFO and IR OfficerThiago BorgesIR ManagerDaniel MaiaPhone: +55 11 2132-4300ri@arezzoco.com.brwww.arezzoco.com.br 12

×