Highlights For The Period
Expressive reduction of the cash cycle, of about six days generating a R$ 40.0 million
working capital reduction;
A reduction of 12.5% in operating expenses represented by administrative, commercial
and logistic expenses when compared to the previous quarter, reaching 7.0% of the net
revenue, being this the company’s best performance since 2004;
A 12.3% growth of the consolidated gross revenue when compared to the same period of
the previous year, reaching R$ 784.0 million, highlighting the hospital and vaccine
category which had an expressive growth of 67.3%;
Profarma’s market share reaches 12.1% in the 3Q08, 0.1 percentage point above the one
performed during the same period of the previous year and 0.3 percentage point above in
relation to the previous quarter;
Profarma announced to the market on August, 6, 2008, it’s Share Repurchase Program of
312.500 shares and until September, 30, 2008 the company acquired 190.632 shares.
Gross Revenues Breakdown
In R$ MM
(R$ Million) 3Q08 3Q07 Chg % 2Q08 Chg %
Branded 536.4 475.2 12.9% 519.7 3.2%
Generics 48.6 50.4 -3.6% 42.6 14.1%
OTC 144.7 125.5 15.3% 131.7 9.9%
Health and Beauty Products 30.1 32.6 -7.6% 29.3 2.9%
Other 24.1 14.4 67.3% 19.6 23.1%
Total 784.0 698.2 12.3% 742.8 5.5%
Gross Profit and Revenues
from Services to Suppliers
In R$ MM
and as % Net Revenues
50.758.9
42.8
15.111.2
10.5
10.2%10.8%
8.7%
3Q07 2Q08 3Q08
Gross Profit Revenues from Services to Suppliers Adjusted GP Margin (%)
Operating Expenses
EXPENSES: General and Administrative + Selling and Marketing + Logistics and Distribution
In R$ MM
and as % Net Revenues
48.050.9
46.4
7.9% 7.9%
7.0%
3Q07 2Q08 3Q08
Adjusted EBITDA and EBITDA Margin
21.6
23.9
14.0
3.6%
2.1%
3.7%
3Q07 2Q08 3Q08
In R$ MM
and as % Net Revenues
Cash Flow
(R$ Million) 3Q08 3Q07 Chg % 2Q08 Chg %
Cash Flow (Used) / Generated in Operating Activities 18.7 (31.6) -159.1% (24.0) -177.9%
Internal Cash Generation 11.0 14.7 -24.9% 16.7 -34.2%
Operating Assets Variation 7.7 (46.2) -116.6% (40.7) -118.8%
Trade Note Receivable (3.8) (35.5) 89.2% (11.6) 67.0%
Inventories 0.2 (1.9) -110.1% (0.3) -169.1%
Suppliers 13.0 (13.4) -196.9% (4.2) -408.5%
Other Items (1.7) 4.6 -137.0% (24.6) 93.1%
Cash Flow (Used) in Investing Activities (1.4) (11.6) 88.0% (3.1) 54.8%
Cash Flow (Used) / Generated by Financing Activities (8.2) (6.1) -33.1% 38.5 -121.2%
Net Increase (Decrease) in Cash 9.1 (49.3) -118.5% 11.5 -20.7%
Cash Cycle
3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08
Cash Cycle - Days * 49.3 53.4 62.5 69.6 67.8 64.3 68.8 67.2 61.8
Accounts Receivable (1) 45.2 50.0 54.6 53.1 50.9 51.7 50.7 49.2 47.0
Inventories (2) 33.1 44.7 43.4 47.2 41.3 48.6 47.9 45.7 42.5
Accounts Payable (3) 29.0 41.3 35.6 30.7 24.5 36.0 29.8 27.7 27.7
*Average
(1) Average of Gross Revenues in the Quarter
(2) Average of COGS in the Quarter
(3) Average of COGS in the Quarter
Indebtedness
Net Debt (R$ MM) and
Net Debt / Ebitda*
In R$ MM
114.0
154.5163.3
1.91.5 1.9
3Q07 2Q08 3Q08
3Q08 Indebtedness Profile
Long Term
Short Term
72%28%
100% in Reais
Basic Interest Tax: CDI
77% Clean
* Ebitda = Accumulated last 12 months
X
X
X
Operating Indicators
Service Level
(units served / units requested)
Logistics E.P.M
(Errors per Million)
93.7%
92.8%
90.8%
3Q07 2Q08 3Q08
145.0
98.0
86.0
3Q07 2Q08 3Q08
Share Performance
Ibovespa Profarma
40
50
60
70
80
90
100
110
120
130
140
150
160
170
180
190
200
25-out
16-nov
8-dec
30-dec
21-jan
12-fev
6-mar
28-mar
19-abr
11-mai
2-jun
24-jun
16-jul
7-ago
29-ago
20-set
12-out
3-nov
25-nov
17-dec
8-jan
30-jan
21-fev
14-mar
5-abr
27-abr
19-mai
10-jun
2-jul
24-jul
15-ago
6-set
30-set
* 100 pts basis on 26/oct/2006
Growth
4Q06 – 3Q08
Results after 2 years of IPO
Gross Revenues 57.1%
Market 25.2%
Market Share Profarma 32.2%
Coverage 19.0%
Number of Distribution Centers 50.0%
Net Income 47.7%
Adjusted Ebitda 22.1%
Cash Cycle - Days (*1) 53.4 58.0 E
Working Capital (*2)
17.9 18.0 E
Net Debt / Ebitda
(Debt average during the period)2.1 1.7
Indebtedness Profile (*3)
% Short Term 75 28% Long Term 25 72
(*1) Based on 4Q06 and 4Q08 (*2) Based on 4Q06 and 4Q08
(% Net Revenues)
Base Year Year II
4Q05 – 3Q06 4Q07 – 3Q08
(*3) Based on 3Q06 and 3Q08
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