Quarterly
Earnings Report April
28, 2008 Sales and Operating Income Increased 15.33% and 12.40%, Respectively
Mexico City, Mexico, April 28, 2008. Grupo Casa Saba (“Saba”, “GCS”, “the Company” or “the Group”), one of the leading Mexican distributors of pharmaceutical products, beauty aids, personal care and consumer goods, general merchandise, publications and other products announces its consolidated financial and operating results for the first quarter of 2008.
NET SALES During the first quarter, GCS’s sales were $6,934.03 million, an increase of 15.33%. Sales for our Private Pharma division grew 18.11% during the first quarter of 2008, due to the consolidation of investments made within the sector over the course of the past several months as well as an increase in our market share. Sales in our Health, Beauty, Consumer Goods, General Merchandise and Others division rose 4.26% compared to the first quarter of 2007. Sales in our Government Pharma division increased 15.97% due to a significant increase in the number of units sold. This was due, in part, to an increase in sales to PEMEX. Publication
sales decreased 18.72% as a result of lower unit sales. This decrease
was due to the calendar effect of Holy Week as well as a reduction in
sales of political content magazines.
Sales in our Private Pharma division rose 18.11% during the first quarter of 2008, as a result of the consolidation of investments that were made within the sector during the past several months and an increase in our market share. Sales
reached $5,964.19 million and represented 86.01% of the Group’s
total sales. Sales in our Government Pharma division rose 15.97% due to a significant increase in the number of units sold. This growth was partly the result of an increase in sales to PEMEX. Government
Pharma sales reached $185.50 million during 1Q08 and accounted for 2.68%
of our total sales. HEALTH, BEAUTY, CONSUMER GOODS, GENERAL MERCHANDISE AND OTHER Sales in our Health, Beauty, Consumer Goods, General Merchandise and Other division rose 4.26% versus the first quarter of 2007. Total sales for this division reached $597.59 million. PUBLICATIONS Publication sales decreased 18.72% as a result of lower unit sales. This decrease was due to the calendar effect of Holy Week as well as a reduction in sales of political content magazines. This
division’s participation as a percentage of total sales went from
3.82% in 1Q07 to 2.69% in the first quarter of 2008. Division
%
of sales
During the first quarter of the year, Grupo Casa Saba’s gross income rose 13.45% to reach $654.09 million. The company’s gross margin decreased by 16 b.p., to 9.43%.
Operating expenses reached $394.13 million, an increase of 14.16% versus the first quarter of 2007. This was partly the result of the investments that were made over the course of the past several months. Operating expenses represented 5.68% of our total sales.
Operating income increased significantly, by 12.40%, to reach $259.95 million during the period. The operating margin was 3.75%, 10 b.p. lower than the 3.85% margin posted in the first quarter of 2007.
Operating income plus depreciation and amortization for 1Q08 was $276.87 million, an increase of 7.14% compared to the first quarter of 2007. Depreciation and amortization for the period was $16.91 million, 37.65% lower than in the first quarter of 2007, which caused this line item to be lower.
Cash and cash equivalents at the end of the first quarter of 2008 was $178.03 million.
During the first quarter of 2008, GCS’s comprehensive cost of financing (CCF) of $5.79 million was $2.19 million higher than the CCF registered during the first quarter of 2007.
During the first quarter of 2008, the Company registered an income of $2.49 million in other expenses (income). The expenses (income) from this line item were derived from activities that are distinct from the company’s everyday business operations.
During the first quarter, tax provisions were $65.03 million. These provisions included $100.70 million in current income tax and -$35.66 million in deferred income tax.
GCS’s net income for the first quarter was $191.61 million, a significant increase of 13.02% versus the first quarter of 2007. The net margin for the period was 2.76%.
During the first quarter
of 2008 and compared to the first quarter of 2007, accounts receivable
days rose by 1.9 days to reach 62.6 days. In addition, our accounts payable
days increased by 2.9 days compared to 1Q07, to reach 49.9 days. Finally,
our inventory days were 52.6 days, 2.3 days less than they were in 1Q07 The 265.4 million shares issued by Grupo Casa Saba are listed in the Mexican Stock Exchange and its ADRs in the New York Stock Exchange, both under the symbol “SAB”. One ADR equals 10 ordinary shares.
As
a precautionary note to investors, except for the historic information
contained herein, certain topics discussed in this document constitute
forward-looking statements. Such topics imply risks and uncertainties,
including the economic conditions in Mexico and other countries in which
Casa Saba operates, as well as variations in the value of the Mexican
peso as compared with the US dollar.
Alejandro Sadurni,
CFO
|
GRUPO
CASA SABA S.A.B. DE C.V. and SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Figures expressed in thousands of Mexican Pesos as of December
2007)
ITEM |
March 2008 |
March 2007 |
$ Change |
TOTAL ASSETS |
10,903,280 | 9,851,473 |
1,051,808 |
CURRENT ASSETS CASH AND CASH EQUIVALENTS ACCOUNTS RECEIVABLE (NET) INTERCOMPANY OTHER ACCOUNTS RECEIVABLE (NET) INVENTORIES OTHER CURRENT ASSETS |
9,305,532 178,037 4,823,379 525,799 |
8,304,981 509,187 4,052,924 386,809 |
1,000,551 (331,151) 770,455 - 138,970 350,194 72,082 |
LONG TERM ACCOUNTS RECEIVABLE INVESTMENTS IN EQUITY SHARES AND UNCONSOLIDATED SUBSIDIARIES OTHER INVESTMENTS |
|
|
- - - - - |
NET PROPERY, PLANT
AND EQUIPMENT PROPERTY MACHINERY AND EQUIPMENT OTHER EQUIPMENT ACCUMULATED DEPRECIATION BUILDINGS IN PROCESS DEFERRED ASSETS (NET) OTHER ASSETS |
1,210,963 1,313,863 461,154 564,827 1,128,881 -- 218,231 168,554 |
1,187,225 1,302,145 407,872 516,123 1,038,916 178,094 |
23,739 11,718 53,281 48,705 89,966 - 40,137 (12,619) |
TOTAL LIABILITIES |
4,483,885 |
4,123,770 |
360,115 |
CURRENT LIABILITIES ACCOUNTS PAYABLE BANK DEBT DEBT SECURITIES ACCRUED TAXES OTHER CURRENT LIABILITIES LONG TERM LIABILITIES BANK DEBT DEBT SECURITIES OTHER DEBT DEFERRED LIABILITIES OTHER LIABILITIES |
3,857,722 3,678,085 - 179,638 - - 626,162 |
3,399,809 3,081,665 27,074 119,035 172,035 723,961 |
457,913 596,420 (27,074) - (119,035) 7,603 - - - - (97,799) |
SHAREHOLDER'S EQUITY
MINORITY STOCKHOLDER'S EQUITY |
6,419,395
- |
5,722,703
3,735,376 |
691,692
-- |
GRUPO
CASA SABA, S.A.B. DE C.V.
(Figures expressed in thousands of Mexican Pesos as of December
2007)
Jan-Mar |
Jan-Mar |
Change |
Jan-Mar |
Jan-Mar |
Change |
|||||||||
Income Statement NET SALES COST OF SALES Gross Profit |
2007 6,012,489 5,435,941 576,529 |
% of sales 100.00% 90.41% 9.59% |
2008 6,934,031 6,279,940 654,091 |
% of sales 100.00% 90.57% 9.43% |
$ 921,561 843,999 77,562 |
% 15.33% 15.53% 13.45% |
2007 6,012,489 5,435,941 576,529 |
% of sales 100.00% 90.41% 9.59% |
2008 6,934,031 6,279,940 654,091 |
% of sales 100.00% 90.57% 9.43% |
$ 921,561 843,999 77,562 |
% 15.33% 15.53% 13.45% |
||
Operating Expenses Sell Expenses Administration Expenses OPERATING EXPENSES |
141,301 203,944 345,245 |
2.35% 3.39% 5.74% |
153,306 240,831 394,137 |
2.21% 3.47% 5.68% |
12,005 36,886 48,891 |
8.50% 18.09% 14.16% |
141,301 203,944 345,245 |
2.35% 3.39% 5.74% |
153,306 240,831 394,137 |
2.21% 3.47% 5.68% |
12,005 36,886 48,891 |
8.50% 18.09% 14.16% |
||
Operating Income COMPREHENSIVE COST OF FINANCING Interest Paid Interest (Earned) Exchange Loss (Gain) Monetary Position (gain) Comprehensive Cost of Financing |
231,283
2,805 |
3.85%
0.05% |
259,955
6,507 |
3.75%
0.09% |
28,671
3,702 |
12.40%
131.97% |
231,283
2,805 |
3.85%
0.05% |
259,955
6,507 |
3.75%
0.09% |
28,671
3,702 |
12.40%
131.97% |
||
OTHER EXPENSES (INCOME),
net
|
-11,305
238,986 |
(0.19%)
3.97% |
-2,494
256,654 |
(0.4%)
3.70% |
8,811
17,668 |
(77.94%)
(7.39%) |
-11,305
238,986 |
(0.19%)
3.97% |
-2,494
256,654 |
(0.4%)
3.70% |
8,811
17,668 |
(77.94%)
(7.39%) |
||
PROVISIONS FOR: Income Tax Asset Tax Deferred Income Tax Profit sharing due Deferred Profit sharing due Total taxes |
87,925 0 -19,765 1,282 0 69,442 |
1.46% 0.00% (0.33%) 0.02% 0.00% 1.15% |
100,700 0 -35,663 0 0 65,037 |
1.45% 0.00% (0.51%) 0.00% 0.00% 0.94% |
12,765 0 - 15,899 - 1,282 0 - 4,505 |
(14.53%) 0.00% 80.44% (100.%) (0.00%) (6.34%) |
87,925 0 -19,765 1,282 0 69,442 |
1.46% 0.00% (0.33%) 0.02% 0.00% 1.15% |
100,700 0 -35,663 0 0 65,037 |
1.45% 0.00% (0.51%) 0.00% 0.00% 0.94% |
12,765 0 - 15,899 - 1,282 0 - 4,505 |
(14.53%) 0.00% 80.44% (100.%) (0.00%) (6.34%) |
||
Net Income Before Extraordinary
Items
Extraordinary Items (Income)
|
169,544
0
|
2.82%
0.00%
|
191,617
0
|
2.76%
0.00%
|
22,073
0
|
13.02%
0.00%
|
169,544
0
|
2.82%
0.00%
|
191,617
0
|
2.76%
0.00%
|
22,073
0
|
13.02%
0.00%
|