Profarma apresentação 1 q10 final

1Q10 Earnings Release

May, 13th, 2010.


Highlights For The Period

• Gross revenue reached R$ 766.0 million, showing a 15.8% growth when comparing with the same period of the

previous year;

• Net profit of the Company increased 15.1% in relation to the same period of the previous year, reaching R$ 7.8

million, representing a net margin of 1.2%;

• A 7.8% reduction of the operating expenses, reaching 7.5% of the net operating revenue, representing a reduction

of 0.7 percentage point in relation with the same period of the previous year;

• Improvement of the service level, reaching 92.3%, an increase of 1.6 percentage point in relation to the same period

of the previous year when we reached 90.7%;

• Increase of the annual price occurred on March 31st, 2010 was of 4.5% in line with inflation accumulated in the past

12 months, being the second largest increase in the last four years.

3

Gross Revenues Evolution(R$ million)

1Q09 4Q09 1Q10

766.0

661.8

807.4


4

Gross Revenues Breakdown


(R$ Million)

Total

1Q10

511.7

51.6

148.4

26.8

27.6

766.0

1Q09

453.9

29.5

129.3

23.2

25.8

661.8

Chg. %

12.7%

74.6%

14.7%

15.4%

7.0%

15.8%

4Q09

546.3

50.8

157.1

26.2

27.1

807.4

Chg. %

-6.3%

1.6%

-5.5%

2.0%

1.9%

-5.1%

Branded

Generic

OTC

Health and Beauty Products

Hospitals and Vaccines

5

Market Share Evolution (%)

Source: IMS

9.6 9.6

11.511.7

10.9*9.9

11.6*

10.9*

2005 2006 2007 2008 2009 1Q09 4Q09 1Q10

*Excluding the similar’s effect


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(R$ million and as % Net Revenues)

Gross Profit and Revenues from Services to Suppliers

1Q09 4Q09 1Q10

Gross Profit Revenues from Services to Suppliers Gross Profit Margin (%)

11.2% 11.0%10.4%

5.3

57.857.1

18.6

20.0

46.5


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(R$ million and as % Net Revenues )

Operating Expenses

1Q09 4Q09 1Q10

48.145.9

50.6

8.2%7.4% 7.5%


8


Net Financial Expenses

1Q09 4Q09 1Q10

5.4

7.8

5.3

1.4%0.8% 0.8%


9


Net Profit

1Q09 4Q09 1Q10

7.86.7

15.4

1.2%

2.2%

1.2%


10


Ebitda and Ebitda Margin

1Q09 4Q09 1Q10

17.917.1

28.0

3.0%

4.1%

2,8%


11

CASH FLOW


(R$ Million) 1Q10

(43.9)

14.5

(58.4)

(1.8)

(24.2)

(36.4)

4.0

(1.5)

69.8

24.5

1Q09

36.6

11.4

25.2

51.5

8.3

(25.3)

(9.4)

(3.3)

(6.2)

27.1

Chg. %

-

27.0%

-

-

-

-44.2%

-

55.7%

-

-9.6%

4Q09

(19.2)

17.9

(37.1)

(25.1)

(81.8)

91.3

(21.6)

(3.6)

(9.9)

(32.6)

Chg. %

-128.6%

-19.1%

-57.3%

92.9%

70.5%

-

-

59.0%

-

-

Cash Flow Generated / (Used) in Operating Activities

Internal Cash Generation

Operating Assets Variation

Trade Accounts Receivable

Inventories

Suppliers

Other Items

Cash Flow (Used) in Investing Activities

Cash Flow Generated / (Used) by Financing Activities

Net Increase / (Decrease) in Cash

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Cash Cycle – Days *

Accounts Receivable (1)

Inventories (2)

Accounts Payable (3)

3Q06

49.3

45.2

33.1

29.0

4Q06

53.4

50.0

44.7

41.3

1Q07

62.5

54.6

43.4

35.6

2Q07

69.6

53.1

47.2

30.7

3Q07

67.8

50.9

41.3

24.5

4Q07

64.3

51.7

48.6

36.0

1Q08

68.8

50.7

47.9

29.8

2Q08

67.2

49.2

45.7

27.7

3Q08

61.8

47.0

42.5

27.7

4Q08

65.8

45.9

49.9

29.9

* Average

(1) Average of Gross Revenues in the Quarter (2) Average of COGS in the Quarter (3) Average of COGS in the Quarter

1Q09

67.9

42.4

54.0

28.5

2Q09

58.7

40.5

46.5

28.4

3Q09

51.6

38.4

38.5

25.3

4Q09

52.7

41.1

49.6

38.0

1Q10

64.9

43.4

56.2

34.7


13

* Ebitda = Accumulated last 12 months

Indebtedness: Net Debt and Net Debt / Ebitda*

(R$ million)

1Q09 4Q09 1Q10

167.3

128.0118.1

1.6x

1.1x

1.5x


14


Capex

1Q09 4Q09 1Q10

1.5

3.3

3.7

0.6% 0.5%

0.2%


15

Service Level

(units served / units requested)

Logistics E.P.M.

(Errors per Million)

Operating Indicators

90.7%

93.0%

92.3%

1Q09 4Q09 1Q10

95.0

130.0

210.0

1Q09 4Q09 1Q10


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Profarma vs Ibovespa 1Q10

103

112

60

80

100

120

140

12/30/09 01/09/10 01/19/10 01/29/10 02/08/10 02/18/10 02/28/10 03/10/10 03/20/10 03/30/10

Ibovespa Profarma


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AnalystFirm

Analyst Coverage

Javier Martinez de Olcoz Cerdan

Phone: (1 212) 761-4542

E-mail: [email protected]

Morgan Stanley

Alexandre Pizano

Phone: (55 11) 2188-4024


Merrill Lynch

Marcel Moraes

Phone: (55 11) 3841-6302


Credit Suisse

Juliana Rozenbaum - Marcio Osako

Phone: (55 11) 3073-3035 / (55 11) 3073-3040



Itaú BBA

Iago Whately

Phone: (55 11) 3049-9480


Banco Fator


Max FischerCFO and IR Director

Beatriz DiezIR Manager

Telephone,: 55 (21) 4009 0276E-mail: [email protected]

www.profarma.com.br/ir

IR Contacts

Profarma apresentação 1 q10 final

Economy & Finance

Transcript of Profarma apresentação 1 q10 final