Earnings Release 4Q08 Presentation
Transcript of Earnings Release 4Q08 Presentation
2
Highlights For The Period
- A 13.3% growth of the consolidated Gross Revenue in 2008 when compared to the same period of the
previous year. reaching R$ 2.9 billion. with remarks to the vaccine and hospital segments with an
expressive growth of 46.2%.
- Reduction of the Operating Expenses (administrative. commercial. and logistic) in 5% in the year 2008
when compared to the same period of the previous year. reaching 7.6% of the Net Revenue.
- A drop in the average terms of accounts receivable for the fourth quarter in a row. accumulating in the year
a 6 day reduction, representing a R$ 50.0 million reduction in working capital
- Recovery of the gross margin (added to Revenues from Services to Suppliers) in the 4Q08 in 18.3% in
comparison with the previous quarter, reaching 11%, 0.3 ponto percentual below the Gross margin of the
4Q07.
- Reduction of 12.6% in errors per million of delivered units dropping from 95.0 registered in 4Q07 to 83.0 in
4Q08. When comparing 2008 with 2007. there was a reduction of 37.2%. going from 145.0 to 91.0.
- Electronic Invoice – In December 2008 the electronic invoice system was implemented. in a nationwide
scale. in the pharmaceutical chain. whose objectives are to increase the transparency of the commercial
transactions in the sector and facilitate the control of the federal and state authorities.
- Profarma announced to the market on November. 17. 2008. one additive to the repurchase program of
company’s shares. increasing the shares maximum quantity to be acquired from 312.500 common shares to
1.062.500 shares.
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Gross Revenues Breakdown
(R$ Million) 4Q08 4Q07 % Variation 3Q08 % Variation 2008 2007 % Variation
Branded 489.9 516.3 -5.1% 536.0 -8.6% 2048.5 1766.8 15.9%
Generics 41.5 46.6 -11.0% 48.6 -14.6% 166.6 165.3 0.8%
OTC 127.6 128.1 -0.4% 144.6 -11.7% 523.4 471.9 10.9%
Health and Beauty Products 31.4 31.1 0.9% 30.1 4.4% 121.8 137.6 -11.5%
Hospitals + Vaccines 24.4 16.0 52.4% 24.1 1.4% 80.1 54.8 46.2%
Total 714.9 738.2 -3.2% 783.4 -8.7% 2,940.4 2,596.4 13.3%
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Market Share (%)
Source: IMS
9.3 9.6 9.6
11.5 11.7
12.812.1
10.9
2004 2005 2006 2007 2008 4Q07 3Q08 4Q08
In R$ MM
and as % Net Revenues
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Gross Profit and Revenues
from Services to Suppliers
Gross Profit Revenues from Services to Suppliers Adjusted GP Margin (%)
63.5 47.0 51.0
217.0 220.7
49.5
15.19.2
32.8
16.5
11.3%
9.3%
11.0% 11.0% 10.7%
4Q07 3Q08 4Q08 2007 2008
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Operating Expenses
In R$ MM
and as % Net Revenues
EXPENSES: General and Administrative + Selling and Marketing + Logistics and Distribution
53.946.7 48.1
181.8
193.6
8.4%
7.0%
7.9% 8.0%7.6%
4Q07 3Q08 4Q08 2007 2008
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Net Financial Expenses
In R$ MM
and as % Net Revenues
8.610.0
32.9
18.4
1.3% 1.4%1.6%
0.8%
1.3%
4Q07 3Q08 4Q08 2007 2008
9.1
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Net Income
In R$ MM
and as % Net Revenues
5.06.5
47.0
31.6
16.9
0.7%1.1%
2.1%
1.2%
2.6%
4Q07 3Q08 4Q08 2007 2008
Adjusted EBITDA
and EBITDA Margin
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In R$ MM
and as % Net Revenues
25.2
15.521.5
80.1 78.7
3.9%3.5% 3.5%
3.1%
2.3%
4Q07 3Q08 4Q08 2007 2008
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Cash Flow
(R$ Million) 4T08 4T07 % Variation 3T08 % Variation 2008 2007 % Variation
Cash Flow Generated / (Used) in Operating Activities 10.6 (6.2) -271.6% 18.7 -43.1% 11.0 (162.8) -106.8%
Internal Cash Generation 10.7 14.3 -24.6% 11.0 -2.4% 53.2 56.5 -5.9%
Operating Assets Variation (0.1) (20.4) -100.6% 7.7 -98.4% (42.2) (219.4) 80.8%
Trade Accounts Receivable 43.8 (30.5) -243.6% (3.8) -1247.3% 58.3 (131.9) -144.2%
Inventories (18.7) (59.1) 68.4% 0.2 -9570.1% 0.6 (105.7) -100.5%
Suppliers (6.9) 81.6 -108.4% 13.0 -152.9% (47.5) 40.1 -218.5%
Other Items (18.4) (12.5) -45.6% (1.7) -964.1% (53.5) (21.9) -144.6%
Cash Flow (Used) in Investing Activities (4.2) (2.7) -52.4% (1.4) -197.8% (10.8) (16.6) 35.1%
Cash Flow Generated / (Used) by Financing Activities (15.3) 52.8 -129.0% (8.2) -87.3% (19.3) 47.1 -140.9%
Net Increase / (Decrease) in Cash (8.8) 43.9 -120.1% 9.1 -196.8% (19.0) (132.3) 85.6%
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Cash Cycle
3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08
49.3 53.4 62.5 69.6 67.8 64.3 68.8 67.2 61.8 65.8
45.2 50.0 54.6 53.1 50.9 51.7 50.7 49.2 47.0 45.9
33.1 44.7 43.4 47.2 41.3 48.6 47.9 45.7 42.5 49.9
Accounts Payable (3) 29.0 41.3 35.6 30.7 24.5 36.0 29.8 27.7 27.7 29.9
Cash Cycle - Days *
Accounts Receivable (1)
Inventories (2)
*Average
(1) Average of Gross Revenues in the Quarter
(2) Average of COGS in the Quarter
(3) Average of COGS in the Quarter
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Net Debt (R$ MM) and Net Debt / Ebitda
Indebtedness
In R$ MM
* Ebitda = Accumulated last 12 months
124.0 124.0
149.4149.4154.5
1.51.91.9
1.51.9
4Q07 3Q08 4Q08 2007 2008
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Capex
In R$ MM
and as % Net Revenues
16.6
1.4
10.8
2.8
0.4% 0.7% 0.7%0.4%0.2%
4Q07 3Q08 4Q08 2007 2008
4.2
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Service Level
(units served / units requested)Logistics E.P.M
(Errors per Million)
Operating Indicators
90.9%90.8%
90.2%
4Q07 3Q08 4Q08
95.086.0 83.0
4Q07 3Q08 4Q082007 2008
91.7%
91.3%
2007 2008
145.0
91.0
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Share Performance
* 100 pts basis on 26/oct/2006
15
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105
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Ibovespa Profarma
Max Fischer
CFO and IR Director
Beatriz Diez
IR Coordenator
Telephone.: 55 (21) 4009 0276
E-mail: [email protected]
www.profarma.com.br/ir
IR Contacts