- Brasil Pharma reported gross revenues of R$916.2 million in 3Q13, an increase of 13.9% over 3Q12. Adjusted EBITDA was R$51.7 million with an adjusted EBITDA margin of 5.6%. Adjusted net income was R$13.5 million with an adjusted net margin of 1.5%.
- The company ended 3Q13 with 1,186 stores, having opened 13 new owned stores and 31 franchises in the quarter.
- Integration of acquired companies is ongoing with administrative, commercial, logistics and systems integration in progress and targeted for completion in 2014.
2. Operational & Financial
• Gross revenues of R$916.2 million, an increase of 13.9% over 3Q12.
• Gross Margin of 30.7%, in line with 3Q12
• Total SSS of 10.7%, with 6.5% for mature stores
• Adjusted EBITDA of R$51.7 million, with adjusted EBITDA margin of 5.6%
• Adjusted net income of R$13.5 million, with adjusted net margin of 1.5%
• With the opening of 13 new owned stores and 31 franchises, we ended 3Q13 with 1,186 stores.
10. Non recurring expenses (R$'000)
Non recurring SG&A
IPO /Debenture issuance expenses
M&A/Branding
Income related to Santana insurance
Platforms Integration/Downsizing
Other
3Q12
(7,639)
3Q13
35,000
(426)
(3,080)
(263)
35,000
9M12
6,874
(108)
(2,630)
21,653
(7,908)
(263)
9M13
32,406
(684)
(1,763)
34,853
Adjustments on 3Q13:
• Adjustment of R$35 million in non-cash revenue: reducing the balance of a future installment of one of
our acquisitions.
• In regard to our integration process, we continue to make no adjustments.
11. 6,5%
5,6%
6,0%
5,3%
135,5
52,3
3Q13
9M12
9M13
51,7
3Q12
134,8
Net Income reconciliation (R$'000)
Net income (loss)
% Net margin
(-) Non recurring expenses
(-) SOP expenses
(-) Adjustments on Depreciation and amortization¹
(-) Income tax and social contrib. from non recurring expenses²
Adjusted Net Income (loss)
% Adjusted net margin
3Q12
7,610
0.9%
(7,639)
(5,751)
(5,905)
26,905
3.3%
3Q13
42,325
4.6%
35,000
(3,205)
(2,987)
13,518
1.5%
9M12
Proforma
9M13
Proforma
26,735
1.2%
6,874
(8,601)
(22,862)
(9,940)
61,264
2.7%
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.
36,867
1.4%
32,406
(8,904)
(10,594)
23,960
0.9%
12. Cash position and indebtedness (R$'000)
3Q12
4Q12
1Q13
2Q13
3Q13
(+) Loans and financing
Short term
Long term
(+) Debentures
Short term
Long term
(+) Accounts payable for investment acquisition
Short term
Long term
149,124
43,953
105,171
260,759
12,461
248,298
333,591
97,971
235,620
177,049
83,229
93,820
253,642
5,237
248,405
345,333
99,711
245,622
169,079
44,864
124,215
258,937
10,427
248,510
264,430
82,833
181,597
160,228
41,694
118,534
253,964
5,348
248,616
232,581
81,986
150,595
247,170
150,963
96,207
260,704
11,982
248,722
179,652
82,681
96,971
(=) Total Indebtedness
Short term (%)
Long term (%)
(-) Cash and cash equivalents
743,474
776,024
692,446
646,773
687,526
20.8%
24.2%
19.9%
19.9%
35.7%
79.2%
75.8%
80.1%
80.1%
64.3%
(404,783) (368,751) (183,870) (162,205) (213,132)
(=) Net Debt
Net debt/Adjusted EBITDA (LTM)
338,691
407,273
508,576
484,568
474,394
1.9 X
2.1 X
2.7 X
2.5 X
2.5 X
14. Cash flow Statement (R$'000)
EBT
(+) Depreciation and amortization
(+) Others
Operating cash generation
(+) Change in working capital¹
(+) Change in other assets and liabilities
Cash consumption
Income Tax & Social Contribution payed
Net cash generated by operating activities
3Q12
9M12
9M13
8,668
50,559
26,689
54,164
13,367
28,246
18,732
(34,379)
-
41,727
54,284
52,248
(14,165)
50,281
34,912
122,700
92,247
(62,962)
15,283
(39,520) (214,054)
36,415
6,498
(25,461) (110,719)
(47,679)
(33,022) (239,515)
(1,728)
874
(-) Capex from operations
(-) Acquisitions
Net Cash from investing activities
(48,652)
(20,460)
(69,113)
(+/-) Loans and financing
(+) Equity funding / Dividends
Net Cash from financing activities
(20,142)
81,897
61,755
Change in cash and cash equivalents
Cash and cash equivalents - opening balance
Cash and cash equivalents - closing balance
(6,484)
411,267
404,783
1- The variation in working capital includes the change in accounts receivable, inventories and suppliers.
3Q13
(4,646)
(16,525)
(2,756) (133,340)
(74,304)
(6,098)
11,845
(31,280) (96,375) (105,232)
(1,542) (348,358) (114,293)
(32,822) (444,733) (219,525)
92,508 238,612
(6,005) 480,689
86,503 719,302
50,926
162,205
213,132
51,091
970
52,061
141,228 (155,619)
263,555 368,751
404,783 213,132
15. Integration Status
Mais Econômica repositioning
“Go Live” SAP
2nd Debenture Issuance
“Best in People Management” Award
New Vice-President
16. Administrative
Commercial Integration
BackOffice activities
Logistics - New DC's
(SSC)
(Continuous
improvement)
Not integrated
(expected to 2014)
(Continuous
improvement)
(Continuous
improvement)
(Continuous
improvement)
Nov.2012
Pernambuco DC
Jun.2013 / Pará DC
under analysis
Out.2013
Oct.2012
Trade Marketing
Integration
Not integrated
On going
(Continuous
improvement)
Operations
Procurement
Integration
(Continuous
improvement)
Not integrated
(Continuous
improvement)
(Continuous
improvement)
Sales Force Training
"Vendo Mais"
in practice
"Vendo Mais" being
implemented
"Vendo Mais"
in practice
"Vendo Mais"
in practice
Systems Integration
Expansion
Expansion focus
Expansion focus
SAP - BackOffice
Module
Front Office
Systems
"Go Live" 1Q14
Implemented
Single System under
analysis
"Go live"
To be implemented Single System under
(expected to 2014)
in 2014
analysis
Repositioning of
stores
"Go Live" 2Q14
ok
Expansion focus
WMS - Logistics
Module
Under
implementation
Implemented
Single System under
analysis
Single System under
analysis
17. Layout adjustments
- 56 stores renovations
- 3 stores completely reformed (1 new Concept store)
Sales mix revision
Sales force training
Repositioning of stores
- 16 closings (12 in 3Q13), 6 more stores expected to be closed by the end of the year
- 9 openings, 7 of them in the new standard (2 in 3Q13)
New DC in Canoas:
- Increase the volume purchased from the industry
- Better supply efficiency
18. Traditional standard
Pilot standard
New standard
• Traditional façade
• New yellow façade: lost of
brand identity
• Traditional façade
• Indoor layout: visual pollution
• Indoor layout: “clean” visual
over sophisticated
• Indoor layout: “clean” visual
with popular appeal
19. SIG6 Gestão Procfit Proteus
Steps
1º wave: Oct/13 - “Go live” Rosário
2º wave : 1H14 - “Go live” Santana, Mais Econômica and Farmais
3º wave : 1H14 - “Go live” Big Ben/SSC integration
Benefits from an Integrated System
Process standardization
Better integration capacity
Faster and more precise information
Higher quality information to shareholders
20. 2º Debentures Issuance
R$ 287.7 million
captured
(15.1% additional to the
initial offering)
1st Series
Principal: R$213 million
Issue Date: September 15, 2013
Term: 5 years
Coupon: CDI + 1.70 p.a.
Interest Payments: Biannual
Maturity: September 15, 2018
2nd Series
Principal: R$73 million
Issue Date: September 15, 2013
Total: 7 years
Coupon: IPCA + 7.48 p.a.
Interest Payments: Biannual
Maturity: September 15, 2020
Allocation:
(i)
50% for amortization of the company’s short-term debt along its contractual maturities
(ii)
50% for cash reinforcement and working capital
21. “Best People Management”
PEOPLE-FOCUSED strategy
Construction of a strong MERITOCRACY based culture
Consolidating a PERENNIAL and PROFITABLE company
Ranking category over 15,000 employees
1º
EMBRAER
2º
BRADESCO
3º
TELEFÔNICA/VIVO
4º
ITAÚ UNIBANCO
5º
BRASIL PHARMA
The assessment takes into account the employees’
satisfaction and the degree of their engagement: the
winning companies have best practices in managing
people, contributing not only to their employees’
satisfaction, but also to their engagement, which
directly influences the business’ results.
22. BPHA3
Shares outstanding
Price (R$/share)
Annual Performance
Ibovespa Index
Perfomance since IPO¹
Ibovespa Index
Market Cap (R$ Bn)
Average daily trading volume in 2013 (R$ million)
09.30.13 Market closure
256,384,419
7.80
-45.8%
-14.1%
-9.5%
-14.2%
2.0
12.1
Brasil Pharma
Source: Bloomberg, as of September 30st, 2013.
Company’s IPO on June 24, 2011.
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