This document provides an earnings release and financial highlights for Profarma Group for the 4th quarter and full year of 2015. Key points include:
- Gross revenues increased 10.5% in 2015 driven by growth across all business divisions.
- Consolidated EBITDA grew 31.4% in 2015 with an EBITDA margin of 2.7%.
- The retail division saw same-store sales growth of 15.9% for Drogasmil and 8.8% for Tamoio.
- The specialties division achieved sales growth of 25.9% and an EBITDA increase of 172%.
- Pharmaceutical distribution sales rose 7.3% while EBITDA grew 33
2. Highlights | Corporate
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The only Brazil’s mixed market player that features exposure and expansion capacity
in the segments of Retail, Hospital & Specialties and Distribution;
Strategic partnership with AmerisourceBergen, the world’s largest player in the
pharmaceutical specialties, resulting in the creation of the company Profarma
Specialty;
The Company carried out four acquisitions between 2012-2014, including its entry
into the Retail pharmaceutical segment, and the attainment of a market position as
2nd largest player within this segment in the state of Rio de Janeiro;
Proven capacity to integrate acquisitions, combining all group companies in the SAP
plataform, BI Cognos and Hyperion.
3. Highlights | 2015
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CONSOLIDATED PRO-FORMA
• Gross revenue climbed by 10.5%;
• Consolidated EBITDA increased by 31.4%, to R$ 114.7
million, with EBITDA margin of 2.7%;
• Operating expenses fell by 0.6 p.p., from 12.7% to 12.1%.
RETAIL
• Drogasmil’s and Tamoio’s sales rose by 16.1% and 9.6%
respectively;
• Drogasmil’s Same Store Sales (SSS) grew 15.9% and
Tamoio’s by 8.8%;
• Drogasmil’s and Tamoio’s average monthly sales per mature
store increased by 11.9% and 8.5% respectively.
SPECIALTIES
• The division’s sales climbed by 25.9%;
• EBITDA grew by 172.0%, to R$ 16.0 million;
• Sales to the private sector increased by 48.7%.
PHARMACEUTICAL DISTRIBUTION
• Sales rose by 7.3%;
• EBITDA grew by 33.1%, to R$ 84.4 million with EBITDA
margin of 2.6%;
• Sales of health and beauty products increased by 14.3%.
8. Consolidated Performance
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Pro-forma (*)
Gross Profit
(R$ million and % Net Revenues)
(*) Pro-Forma data: considering 100% of revenues from Pharma Distribution, Tamoio, Drogasmil / Farmalife and Profarma Specialty
4Q14
14.8%
154.2
4Q15
14.4%
161.5
2014
15.2%
591.6
2015
15.0%
649.4
4Q14
12.2%
106.3
4Q15
12.2%
105.7
2014
12.5%
432.0
2015
12.6%
437.0
9. Consolidated Performance
9
Operating Expenses – SGA
(R$ million and % Net Revenues)
Pro-forma (*)
(*) Pro-Forma data: considering 100% of revenues from Pharma Distribution, Tamoio, Drogasmil / Farmalife and Profarma Specialty
4Q14 4Q15 2014 20154Q14 4Q15 2014 2015
10.4%
90.9
10.8%
93.4
363.7
357.6
10.5% 10.3%
12.7 %
493.0
12.1%
524.8
12.5%
130.3
12.3%
138.3
10. Consolidated Performance
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(*) Pro-Forma data: considering 100% of revenues from Pharma Distribution, Tamoio, Drogasmil / Farmalife and Profarma Specialty
Adjusted EBITDA and Adjusted EBITDA Margin
(R $ million and % Net Revenues)
Pro-forma (*)
4Q14 4Q15 2014 20154Q14 4Q15 2014 2015
1.6%
14.2
2.1%
18.0
65.6
79.6
1.9 %
2.3% 2.2%
87.3
2.7%
114.7
2.0%
21.2
2.5%
28.2
11. Consolidated Performance
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Net Profit
(R $ million and % Net Revenues)
(*) Pro-Forma data: considering 100% of revenues from Pharma Distribution, Tamoio, Drogasmil / Farmalife and Profarma Specialty
Pro-forma (*)
Net Profit
Adjusted Net Profit
Pro-Forma Net Profit
Pro-Forma Adjusted Net Profit
(20.2)
-2.3%
-0.8%
4Q15
(7.3)
(0.1)
(4.4)
0.0%
-0.5%
(52.1)
2015
(21.2)
(13.1) (9.1)
-0.6%
-0.4% -0.3%
4Q14
(19.1)
-1.8%
-0.6%
4Q15
(6.8)
2.4
(3.9)
0.2%
-0.3%
(50.0)
2015
(14.5)(5.6)
(0.5)
-1.3%
-0.3%
-0.2%
0.0%
-1.5%
20144Q142014
12. Consolidated Performance
Cash Flow
(R$ million)
Cash Cycle
(Days)
Cash Flow Generated /
Used) in Operating Activities
Internal Cash Generation
Operating Assets Variation
Cash Flow (Used)
in Investing Activities
Cash Flow Generated /
(Used) by Financing Activities
Net Increase /
(Decrease) in Cash
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Consolidated Consolidated Farma Esp. Varejo
Pro-forma
2015 2014 4Q154Q14 4Q154Q154Q15
Cash Cycle *
Accounts Receivable¹
Inventories²
Accounts Payable³
59.3
52.2
7.1
(5.7)
25.4
79.0
58.9
11.2
47.7
(11.8)
67.5
114.5
33.2 36.233.724.737.3
43.8 17.054.046.641.6
70.7 66.149.260.155.1
81.4 46.969.582.059.3
* Average
(1) Average of Gross Revenues in the Quarter
(2) Average of COGS in the Quarter
(3) Average of COGS in the Quarter
(4) The account was based on the average gross sale and CGS, excluding
Specialties division and Tamio’s chain (included in Retail’s Division).
15. Pharmaceutical Distribution
Financial Data
(R$ million and % Net Revenues)
2.6
2014 2015
2.1
8.0
2014 2015
8.1
10.6
2014 2015
10.5
3,739.3
2014 2015
3,483.7
Sales of health and beauty
products increased by
14.3%.
EBITDA grew by 33.1%, to
R$ 84.4 million with EBITDA
margin of 2.6%;
Sales rose by 7.3% year-
over-year;
15
EBITDA Margin
(%)
Op. Exp. SG&A
(%)
Gross Margin
(%)
Gross Revenues
(R$ million)
19. 19
2014 20152014 20152014 20152015 2015
Retail | Tamoio
The Tamoio chain’s sales
rose by 9.6% year-over-year;
Average monthly sales per
mature store climbed by
8.5%, from R$ 562,600 in
2014 to R$ 610,300 in 2015;
The average ticket increased
by 6.8% year-over-year.
Operating expenses fell by
1.3 p.p. in relation to 2014;
EBITDA Margin
(%)
Op. Exp. SG&A
(%)
Gross Margin
(%)
Gross Revenues
(R$ million)
Financial Data
(R$ million and % Net Revenues)
5.96.8
22.9
24.2
29.1
31.0
440.9
402.3
22. 22
2014 2015
2014 20152014 20152014 2015
Retail | Drogasmil/Farmalife
Total sales in 2015 up 17.6%
year-over-year (excluding
the impact from the stores
under renovation);
Same stores sales (SSS)
increased by 15.9% year-
over-year
Average monthly sales per
mature store rose by 11.9%,
from R$ 400,900 in 2014 to
R$ 448,700 em 2015;
Financial Data
(R$ million and % Net Revenues)
-4.0-3.6
32.4
34.3
30.630.9
307.9
265.2
Op. Exp. SG&A
(%)
Gross Margin
(%)
Gross Revenues
(R$ million)
EBITDA Margin (%)