Grupo Casa Saba Announces 3Q09 Earnings Report
October 28 2009 - 6:14PM
PR Newswire (US)
Net Income Increased 39.03% 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 Sandra Yatsko +52 (55) 5284-6698 IR Communications Jesus
Martinez Rojas +52 (55) 5644-1247 DATASOURCE: Grupo Casa Saba
CONTACT: Patrik Zielinski, +011-5255-5284-6623, , or Sandra Yatsko,
+011-5255-5284-6698, , both of Grupo Casa Saba; or IR
Communications, Jesus Martinez Rojas, +011-5255-5644-1247, , for
Grupo Casa Saba Web site: http://www.casasaba.com/
Copyright