Grupo Casa Saba (NYSE: SAB)
Financial Highlights:
All figures are expressed in millions of Mexican pesos.
Comparisons are made with the same period of 2011, unless otherwise
stated. Figures may vary slightly due to rounding).
- The Group's net sales for the quarter reached $12,253.1 million
pesos
- Gross income for the period was 2,233.4 million; the gross
margin for the quarter was 18.23%
- Operating expenses reached $1,967.0 million pesos and
represented 16.05% of the Company's total sales
- Quarterly operating income was $266.4 million, resulting in an
operating margin of 2.17% for the period
- Second quarter EBITDA was $377.1 million, or 3.08% of total
sales
- The Group's net profit for the quarter was $177.4 million
- As of June 30, 2012, GCS's net debt totaled $9,535.2 million
pesos
- GCS closed the quarter with 25 Distribution Centers and over
1,340 pharmacies in operation across Latin America
Grupo Casa Saba (SAB) ("Saba," "GCS," "the Company" or "the
Group"), one of the leading Mexican distributors of pharmaceutical
products as well as health, beauty aids and consumer goods and
publication, and one of the most important pharmacy chains in Latin
America, announces its consolidated financial and operating results
for the second quarter of 2012.
QUARTERLY EARNINGS
In the second quarter of 2012, Saba faced close competition in
the distribution and marketing of pharmaceutical products, health
and beauty aids, and consumer goods in Mexico as well as in the
other Latin America countries in which we operate. Our operating
strategy maintained emphasis on improving efficiency levels and
controlling logistic costs and expenses, generating positive
results in practically all our divisions. At the sales level, we
focused on improving the availability of the most in demand
products for our clients in wholesale and in our pharma network, as
well as improving the care and service of our stock sales. In
regards to growth, opening new pharmacies in Latin America and in
Mexico allowed us to strengthen our presence in the markets in
which we already operate, as well as to improve the knowledge of
the brands with which we operate.
At Grupo Casa Saba, we will continue to focus on making ongoing
improvements to our logistic and commercial operations in order to
offer all of our clients a wide range of products at competitive
prices. In our pharmacy network, we will also strive to offer the
best integrated health, beauty and consumer goods solutions.
NET SALES Net sales for the quarter
reached $12,253.1 million, an increase of 1.4% compared to
$12,084.1 million in 2Q2011. This increase resulted from the higher
performance in our distribution division.
SALES BY DIVISION
Distribution Division
PHARMA, HEALTH, BEAUTY AND CONSUMER
GOODS
Sales from our Pharma, Health, Beauty and Consumer Goods
division increased 3.46% versus the 2Q2011, totaling $5,557.0
million. In terms of total sales, this division's percentage went
from 45.78% in 2Q2011 to 46.72% in the 2Q2012.
GOVERNMENT PHARMA
Quarterly sales in our Government Pharma division grew 9.99%
compared to the second quarter of 2011. This growth was due to our
increased participation in the bidding processes of various State
and Federal health institutions. In terms of total sales, this
division represented 2.78% in 2Q2011, down from to 3.02% in the
2Q2012.
PUBLICATIONS
Sales from our Publications distribution division declined
20.59% compared to the second quarter of 2011, as a result of lower
sales from various publishers and as well as a downward adjustment.
In terms of total sales, this division's percentage went from 1.67%
in 2Q2011 to 1.31% in the 2Q2012.
RETAIL PHARMACY
During the second quarter of the year, sales from our Retail
Pharmacy division decreased by $14.8 million pesos, or 0.2%, as a
result of the divestiture of Peru, the Brazilian restructuring, and
lower institutional sales in our Farmacias ABC chain. A portion of
this effect was offset by the positive performance of Farmacias
Ahumada in Chile, which increased its sales by 2%.
This division's percentage of the Group's overall sales rose to
48.9% vs 49.7% in the 2Q2011.
GROSS INCOME
During the second quarter of 2012, gross income reached $2,233.4
million pesos, primarily due to the improved gross margins in
Chile, Brazil, Mexico (Farmacias ABC) and the Pharma, Health and
Beauty distribution division. The above shows our efforts to
improve service, availability and commercial supply to our
clients.
Compared to the second quarter of 2011, the Group's gross income
increased 4.7%. Gross income margin showed an improvement of 59
basis points in the second quarter of the year, reaching
18.23%.
OPERATING EXPENSES
Operating expenses in the second quarter of 2012 rose by $221.2
million pesos, or 12.67%, compared to the same period of the
previous year. This increase was the result of the annual increase
in payroll and higher expenses in both our Government Pharma
division and our Chilean and Mexican (Benavides) operations, due to
their larger infrastructures, as well as the increase in loss
reserves.
As a percentage of total sales, operating expenses represented
16.14% during the second quarter of 2012 compared to 14.45% during
the same period of 2011.
OPERATING INCOME
Quarterly operating income for 2Q2012 was $266.4 million, down
from $385.8 million reported in 2Q2011. This decline in operating
income was the result of a lower gross income as well as the
increase in expenses.
Operating income margin for the 2Q2012 was 3.19%, versus 2.17%
in 2Q2011.
OPERATING INCOME PLUS DEPRECIATION AND
AMORTIZATION (EBITDA)
EBITDA for 2Q2012 was $377.1 million, a decrease of 23.94%
compared to the $495.9 million reported during the second quarter
of 2011.
EBITDA margin for the second quarter of 2012 was 3.08%.
COMPREHENSIVE COST OF FINANCING (CCF)
The Group's CCF reached $115.5 million, 56.6% lower than the CCF
reported during 2Q2011.
This decrease was primarily due to minor interest payments.
NET DEBT
The Company's net debt at the end of 2Q2012 was $9,535.2 million
pesos.
OTHER EXPENSES (INCOME)
During the second quarter of the year, other expenses totaled
$94.7 million.
It is important to mention that the results listed in this line
item are derived from activities outside of the company's normal
business operations and, as a result, they are not necessarily
recurrent.
TAX PROVISIONS
Tax provisions for the second quarter of 2012 were $68.1 million
pesos, 9.2% higher than the amount reported in 2Q2011.
NET INCOME
In the second quarter 2012 GCS recorded a net income of $177.4,
an increase from the $69.0 million in the second quarter of
2011.
The net margin for 2Q2012 was 1.45%.
Contacts: GRUPO CASA SABA Sandra Yatsko IR +52 (55) 5284-6672
Email Contact Alejandro Sadurni CFO Email Contact IR
Communications: Jesus Martinez Rojas +52 (55) 5644-1247 Email
Contact
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