Grupo Casa Saba Announces 3Q09 Earnings Report
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Wed, 28 Oct 2009 22:14:42 GMT |
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Net Income Increased 39.03% MEXICO CITY, Oct. 28
MEXICO CITY, Oct. 28 /PRNewswire-FirstCall/ -- Grupo Casa Saba
(NYSE: SAB) ("Saba", "GCS", "the Company" or "the Group"), one of the leading
Mexican distributors of pharmaceutical products, health and beauty aids,
personal care and consumer goods, general merchandise, publications and other
products, announces its consolidated financial and operating results for the
third quarter of 2009.
Financial Highlights:
(All figures are expressed in millions of Mexican pesos of purchasing
power as of September 2009. Comparisons are made with the same period of 2008,
unless otherwise stated. Figures may vary due to rounding practices).
- Sales for the quarter grew 4.90% to reach $7,009.53 million
- Gross income increased 2.43%
- The gross margin for the quarter was 10.87%
- Quarterly operating expenses as a percentage of sales were 7.87%,
slightly higher than
the margin of 7.75% registered during the third quarter of 2008
- Operating income decreased 6.93% versus 3Q08
- The operating margin for the quarter was 3.00%
- The CCF for the quarter declined 22.15%
- Tax provisions were 61.14% lower than in 3Q08
- Net profit for the quarter was $155.38 million, an increase of 39.03%
- Cash and cash equivalents at the end of the quarter was $161.17 million
QUARTERLY EARNINGS
NET SALES
During the third quarter of 2009, GCS's sales were $7,009.53 million, an
increase of 4.90%.
SALES BY DIVISION
Private Pharma
Sales in our Private Pharma division rose 6.19% during the third quarter
of 2009. This growth was primarily driven by our Mexican pharmaceutical
distribution business.
Sales for this division reached $5,951.63 million versus $5,604.89 million
in 3Q08 and represented 84.91% of the Group's total sales.
GOVERNMENT PHARMA
Sales in our Government Pharma division this quarter grew 5.19% to
$269.42 million compared to $256.13 million in the third quarter of 2008.
This was mainly due to an increase in our participation in the bidding
processes of the Instituto Mexicano del Seguro Social (IMSS), the Instituto de
Seguridad Social del Estado de Mexico y Municipios (ISSEMYM) and the Centro
Nacional de Equidad de Genero y Salud Reproductiva (National Center for Gender
Equity and Reproductive Health).
As a percentage of total sales, this division went from representing 3.83%
in 3Q08 to 3.84% during the third quarter of 2009.
HEALTH, BEAUTY, CONSUMER GOODS, GENERAL MERCHANDISE AND OTHER
Sales in our Health, Beauty, Consumer Goods, General Merchandise and Other
division reached $595.08 million, a decline of 3.14% compared to the third
quarter of 2008. This was due to a decrease in promotions and discounts in an
effort to improve this division's operating margin.
This division represented 8.49% of GCS's total sales in 3Q09, slightly
lower than the same period of the previous year when it accounted for 9.19% of
the Group's total sales.
PUBLICATIONS
Publication sales decreased 6.39% during the quarter, primarily as a
result of lower unit sales. This decrease in units was due to the fact that
Citem stopped distributing publications to international clients as well as
some publications that no longer met our minimal profitability requirements.
Consequently, this division's participation as a percentage of total sales
went from 3.09% in 3Q08 to 2.76% in the third quarter of 2009.
There were marginal changes in the sales mix during the quarter. Private
Pharma sales represented 84.91% of total sales (compared to 83.88% during the
third quarter of 2008), while Government Pharma accounted for 3.84% (versus
3.83% during the third quarter of 2008). Health, Beauty, Consumer Goods,
General Merchandise and Other represented 8.49% (compared to 9.19% in the
third quarter of 2008) and Publications made up the remaining 2.76% (versus
3.09% during the third quarter of 2008).
GROSS INCOME
During the third quarter of the year, Grupo Casa Saba's gross income
increased 2.43% versus the same period of the previous year to reach
$762.04 million. This growth was primarily driven by our Private Pharma
division.
The company's gross margin was 10.87%, 26 basis points lower than the
11.13% margin posted during 3Q08. The margin was affected by an increase in
the cost of sales resulting from less favorable commercial conditions with the
main Brazilian wholesalers.
OPERATING EXPENSES
GCS's operating expenses reached $551.63 million in 3Q09, an increase of
6.52% compared to the third quarter of 2008. The increase in expenses
continues to be related to our Brazilian operations.
Operating expenses represented 7.87% of our total sales in 3Q09 compared
to 7.75% during the same period of the previous year.
OPERATING INCOME
Quarterly operating income was $210.41 million, 6.93% lower than the
$226.07 reported in 3Q08. This decline was due to the fact that the growth in
sales was not sufficient to offset the increase in operating expenses.
The operating margin was 3.00%, 38 basis points lower than the 3.38%
margin registered in the third quarter of 2008.
OPERATING INCOME PLUS DEPRECIATION AND AMORTIZATION
Operating income plus depreciation and amortization for 3Q09 was
$235.41 million, a decrease of 5.72% compared to the third quarter of 2008.
Depreciation and amortization for the period was $25.00 million, 5.90% higher
than in the third quarter of 2008.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents at the end of the third quarter of 2009 was
$161.17 million, a decline of 44.99% compared to the same period of 2008.
COMPREHENSIVE COST OF FINANCING
During the period, GCS's comprehensive cost of financing (CCF) reached
$47.71 million, 22.15% lower than the CCF reported during 3Q08. This was
primarily due to a reduction in the amount of interest income paid as well as
a lower exchange rate loss.
These interest payments are related to the long-term credit that was
obtained as a result of the acquisition in Brazil as well as the interest that
was generated from the utilization of short-term credits for our operations in
both Mexico and Brazil.
OTHER EXPENSES (INCOME)
During the third quarter of 2009, the Company registered an income of
$17.43 million in other expenses (income), an increase of 20.59% versus the
same period of 2008. The expenses (income) from this line item were derived
from activities that are distinct from the company's everyday business
operations.
TAX PROVISIONS
During the third quarter, tax provisions were $24.74 million, 61.14% less
than the $63.67 million obtained during 3Q08. Of these, $75.89 million were
related to income tax payments and ($51.15) million were attributed to
deferred income tax.
The effective tax rate for the quarter was 13.74%.
NET INCOME
As a result, GCS's net income for the third quarter was $155.38 million,
an increase of 39.03% compared to the third quarter of 2008. The growth was
primarily due to the reduction in both the CCF as well as the tax provisions.
Consequently, the net margin for the period was 2.22%, 55 basis points higher
than the 1.67% net margin registered during the third quarter of 2008.
WORKING CAPITAL
During the third quarter of 2009, our accounts receivable days increased
by 7.3 days from 3Q08 to reach 69.3 days. In addition, our accounts payable
days rose by 6.1 days versus 3Q08, to reach 56.3 days. Finally, our inventory
days were 60.4 days, 0.7 fewer days compared to the same period of the
previous year.
Contacts:
Grupo Casa Saba
Patrik Zielinski
+52 (55) 5284-6623
pzielinski@casasaba.com
Sandra Yatsko
+52 (55) 5284-6698
syatsko@casasaba.com
IR Communications
Jesus Martinez Rojas
+52 (55) 5644-1247
jesus@irandpr.com
SOURCE Grupo Casa Saba
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