2. Highlights | Corporate
2
Only player positioned in the Brazilian market in the segments of Distribution, Retail,
and Hospital & Specialities;
Strategic partnership with AmerisourceBergen, the world’s largest player in the
pharmaceutical specialties;
The Company carried out four acquisitions over the last three years, including its
entry into the Retail pharmaceutical segment, and the attainment of a market position
as one of the major players within this segment in the state of Rio de Janeiro;
Proven capacity to integrate acquisitions, combining all group companies in the SAP
plataform.
3. Highlights | Period
3
CONSOLIDATED
• Closing of the Deal with AmerisourceBergen, on June 26th 2014,
with a capital increase of R$ 248.0 million and a potential reduction
of R$ 31 .0 million/year in financial expenses;
• Maintenance of the 2.3% EBITDA margin, even on a quarter with
6% less working days and with a 22.2% lower prices increase.
RETAIL
• Growth of 7.2% in Drogasmil / Farmalife sales and of 13.5% in
Tamoio’s, in comparison to the 2Q13;
• 18.6% and 37.6% year-over-year increase on Drogasmil /
Farmalife same store sales and average store sale/month;
• Improvement of 35.2% of Drogasmil / Farmalife EBITDA and
11.5% of Tamoio’s against previous quarter.
SPECIALTIES
• Closing of the Deal with AmerisourceBergen, with an R$ 40 .0
million contribution for the division;
• 15.1% growth year-over-year on specialties retail sales;
• 20.0% increase year-over-year on oncologicals sales.
PHARMACEUTICAL DISTRIBUTION
• Operating expenses shortened from 8.6% to 8.3%, even with a
3.0% lower in sales in the quarter;
• R$ 6.3 million negative impact on the gross profit due to a lower
price increase;
• Midsize and independent customers increased 3.3% in
comparison to the 2Q13, even on a quarter with 6% less working
days;
• 3.4 days cash cycle reduction yoy.
6. Consolidated Performance
6
Gross Revenues Evolution
(R$ million)
2Q13 1Q14 2Q14
1,016.9 976.6 1,009.2
4.3%
-2.2%
Pharmaceutical Distribution
Specialties
Retail
Midsize and independent customers
increased 3.3% in comparison to the
2Q13, even on a quarter with 6% less
working days.
15.1% growth on specialties retail
sales and 20.0% increase on
oncologicals sales in comparison to
the 2Q13.
Year-over-year sales increases of
7.2% from Drogasmil / Farmalife and
of 13.5% from Tamoio.
82.9
54.6
66.1
1,099.8
1,031.2
1,075.3
Accounting Consolidated Gross Revenues
Pro-forma Consolidated Gross Revenues: 100% of revenues from
Tamoio and Drogasmil / Farmalife (unaudited figures for 2Q13)
7. Performance by Division
Pharmaceutical Distribution
2Q13 1Q14 2Q14
854.0
818.7 828.4
1.2%
-3.0%
Specialties
2Q13 1Q14 2Q14
162.9
146.3 148.4
1.4%
-8.9%
Retail(*)
2Q13 1Q14 2Q14
58.1
11.0%
7
Evolução da Receita Bruta
(R$ milhões)
87.0
94.6 98.7
61.2 62.3
145.1
155.8
161.0
3.4%
Accounting Gross Revenues
Pro-forma additional Gross
Revenues
(*) Pro-forma figures: 100% of revenues from Tamoio and Drogasmil / Farmalife (unaudited
figures for 2Q13)
12. Consolidated Performance
Reduction of 12.7 days in the Cash Cycle.
Cash Flow
(R$ million)
* Average
(1) Average of Gross Revenues in the Quarter
(2) Average of COGS in the Quarter
(3) Average of COGS in the Quarter
(4) In 2Q14, the account was based on the average
gross sale and CGS, excluding Specialties division.
2Q14(4)1Q142Q13
Cash Cycle - Days * 56.3 48.1 43.6
Accounts Receivable(1) 55.1 45.1 47.3
Inventories (2) 51.1 49.2 55.9
Accounts Payable (3) 49.9 46.2 59.6
Cash Cycle
(Days)
2Q14 2Q13 1Q14
Cash Flow Generated /
Used) in Operating Activities (11.9) (31.6) 81.0
Internal Cash Generation 1.4 23.6 5.1
Operating Assets Variation 13.3 (55.2) 75.9
Cash Flow (Used)
in Investing Activities 16.6 (78.8) (10.3)
Cash Flow Generated /
(Used) by Financing Activities 145.9 72.4 (16.0)
Net Increase /
(Decrease) in Cash 150.6 (38.0) 54.7
12
15. Pharmaceutical Distribution
Financial Data
(R$ million and % Net Revenues)
15
EBITDA Margin
(%)
2.9
2Q13 2Q14
4.0
Op. Exp. SG&A
(%)
8.3
2Q13 2Q14
8.6
Gross Margin
(%)
11.3
2Q13 2Q14
12.8
Gross Revenues
(R$ million)
828.4
2Q13 2Q14
854.0
Raise of 10.3% in the OTC
categories compared to 2Q13,
and of 14.3% over 1Q14.
3.4 days cash cycle reduction
yoy;
R$ 4.4 million reduction in total
operating expenses over 2Q13,
considering absolute figures;
Midsize and independent
customers increased 3.3% in
comparison to the 2Q13;
17. Financial Data
(R$ million and % Net Revenues)
17
Ebitda Margin
(%)
1.1
2Q13 2Q14
2.3
Op. Exp. SGA
(%)
11.6
2Q13 2Q14
10.8
Gross Margin
(%)
13.1
2Q13 2Q14
13.4
Gross Revenues
(R$ million)
148.4
2Q13 2Q14
162.9
Specialties
Closing of the Deal with
AmerisourceBergen, with an
R$ 40.0 million contribution
for the division;
15.1% growth year-over-year
on specialties retail sales;
20.0% increase year-over-year
on oncologicals sales.
22. Financial Data
(R$ million and % Net Revenues)
22
Ebitda Margin (%)
-5.0
2Q13 2Q14
-22.5Op. Exp. SGA
(%)
35.2
2Q13 2Q14
38.6
Gross Margin
(%)
31.2
2Q13 2Q14
16.9
Gross Revenues
(R$ million)
62.3
2Q13 2Q14
58.1
Retail | Drogasmil/Farmalife
Year-over-year sales increases
of 7.2%;
Average sales per store up
37.6% from 2Q13;
Gross margin increase of 1.9
p.p. and 14.3 p.p., against 1Q14
and 2Q13, respectively.
Operating expenses in
absolute values down 5.3%
QoQ;
Ebitda improvement of 35.2%
and 76.3%, compared to 1Q14
and 2Q13, respectively;
