2. Highlights | Corporate
2
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 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.
3. Highlights | Period
3
CONSOLIDATED
• The EGM held on May 12, 2014 approved the capital
increase-totaling R$ 187.0 million at least and R$ 335.6
million at most-that will allow AmerisourceBergen to
become one of Profarma’s shareholders.
RETAIL
• In relation to 1Q13, Drogasmil / Farmalife’s sales rise by
45.5% and Tamoio’s sales by14.8%;
• The new IT (SAP + ITEC) platform was implemented at
Drogasmil/Farmalife in Feb.14;
• A guidance for the opening of Drogasmil / Farmalife stores
has been announced: between 33 and 37 stores in the next 12
months.
SPECIALTIES
• Profarma started a strategic association with the world’s
largest distributor of specialties, U.S. company
AmerisourceBergen, to create Profarma Specialty;
• The remaining portion of Arpmed (20%) was acquired;
• Sales up 5.4% year-over-year.
PHARMACEUTICAL DISTRIBUTION
• A 11.9% drop in total operating expenses quarter-over-
quarter;
• A 13.1% rise in sales to independent customers;
• Cash cycle shortened by 9 days, which corresponds to a R$
70 million decrease in working capital.
6. Consolidated Performance
6
Gross Revenues Evolution
(R$ million)
1Q13 4Q13 1Q14
986.3 985.2 976.6
-0.5%
-1.0%
Pharmaceutical Distribution
Specialties
Retail
Sales growth by 13.1% in the
segments of independent clients and
by 29.2% in the OTC category in
comparison with 1Q13.
5.4% growth in revenues from the
Specialties division, with particular
mention to Prodiet’s sales increase
of nearly 18.7% to the private sector.
Year-over-year sales increases of
14.8% from Tamoio and of 45.5%
from Drogasmil / Farmalife.
50.4 56.2
54.6
1,036.7 1,041.4
1,031.2
Accounting Consolidated Gross Revenues
Pro-forma Consolidated Gross Revenues: 100% of revenues from
Tamoio and Drogasmil / Farmalife (unaudited figures for 1Q13)
15. Pharmaceutical Distribution
Financial Data
(R$ million and % Net Revenues)
15
EBITDA Margin
(%)
1.8
1Q13 1Q14
2.4
Op. Exp. SG&A
(%)
7.9
1Q13 1Q14
8.1
Gross Margin
(%)
10.1
1Q13 1Q14
10.8
Gross Revenues
(R$ million)
818.7
1Q13 1Q14
847.4
Reduction in total operating
expenses in absolute terms, of
7.1% year-over-year and 11.9%
quarter-over-quarter;
Sales growth by 29.2% in the
OTC category over 1Q13;
Year-over-year growth by
18.1% in the Southern region;
Sales growth by 13.1% in the
segments of independent
clients;
Reduction of 9 days in the
Cash Cycle, representing
working capital savings in the
amount of R$ 70 million.
17. Financial Data
(R$ million and % Net Revenues)
17
1.6
1Q13 1Q14
1.2
11.3
1Q13 1Q14
11.9
13.4
1Q13 1Q14
13.5
146.3
1Q13 1Q14
138.9
Specialties
Sales growth by 5.4% in this
division, with highlights to
Prodiet reaching 18.7%;
Total operating expenses in
absolute terms fell by 25.3%
from 1Q13 and by 12.5% from
4Q13.
Strategic partnership with
AmerisourceBergen, resulting
in the creation of Profarma
Specialty;
Ebitda Margin
(%)
Op. Exp. SGA
(%)
Gross Margin
(%)
Gross Revenues
(R$ million)
19. Financial Data
(R$ million and % Net Revenues)
19
5.1
1Q13 1Q14
2.8
25.9
1Q13 1Q14
25.7
31.1
1Q13 1Q14
28.5
94.6
1Q13 1Q14
82.4
Retail | Tamoio
Sales from Tamoio chain
stores rose by 14.8% year-
over-year;
Average monthly sales per
mature store grew by 9.1%,
from R$ 481,700 in 1Q13 to
R$ 525,500 in 1Q14;
EBITDA of R$ 4.9 million in
1Q14, with a 5.1% margin,
up 2.3 p.p. year-over-year;
Net income came to R$ 3.3
million in 1Q14, with a 3.5%
net margin.
Op. Exp. SGA
(%)
Gross Margin
(%)
Gross Revenues
(R$ million)
Ebitda Margin
(%)
22. Financial Data
(R$ million and % Net Revenues)
22
-7.8
1Q13 1Q14
-27.7
38.1
1Q13 1Q14
49.4
29.3
1Q13 1Q14
22.9
61.2
1Q13 1Q14
42.0
Retail | Drogasmil/Farmalife
Average monthly sales per
store climbed by 98.2%, from
R$ 164,300 in 1Q13 to
R$ 325,700 in 1Q14;
Gross margin rose by 6.4 p.p.,
from 22.9% in 1Q13 to 29.3% in
1Q14;
The SAP system was
implemented in February 2014;
Introduction of the ITEC
operational system in the
stores in February 2014;
Improvement of the negative
operating result by 58.6%,
changing from (R$ 11.6) million
to (R$ 4.8) million in 1Q14.
Ebitda Margin (%)
Op. Exp. SGA
(%)
Gross Margin
(%)
Gross Revenues
(R$ million)
