Grupo Casa Saba (NYSE: SAB)
Financial Highlights: (All figures are
expressed in millions of Mexican pesos of purchasing power as of
September 2010. Comparisons are made with the same period of 2009,
unless otherwise stated. Figures may vary due to rounding
practices).
- Net sales for the third quarter of 2010 rose 6.43% to reach
$7,460.02 million
- Gross income for the quarter increased 12.80% compared to the
same period of 2009
- The gross margin for the quarter was 11.52%
- Quarterly operating expenses represented 8.08% of GCS's total
sales
- Operating income grew 22.15% compared to the same period of
2009
- The quarterly operating margin was 3.45%, an increase of 45
b.p.
- Operating income plus depreciation and amortization rose 16.45%
versus 3Q09 to reach $274.14 million
- GCS's net profit for the quarter totaled $292.66 million, an
increase of 88.35% compared to the third quarter of 2009
- Cash and cash equivalents at the end of the third quarter of
2010 was $6,961.62 million
Grupo Casa Saba ("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 2010.
QUARTERLY EARNINGS
NET SALES
During the third quarter of 2010, GCS's sales rose 6.43%
compared to the same period of the previous year to reach $7,460.02
million.
SALES BY DIVISION
PRIVATE PHARMA
Sales in our main division, Private Pharma, increased 4.89%
compared to the third quarter 2009. This increase was primarily the
result of the growth in the sales of our Mexican distribution
business.
This division represented 83.69% of the Group's total sales, 122
basis points lower than the participation that it had in 3Q09.
GOVERNMENT PHARMA
During the period, sales in our Government Pharma division grew
26.23% compared to the third quarter of 2009, primarily as a result
of higher sales related to the Metro system, among others.
Consequently, this division went from representing 3.84% of the
Group's total sales in 3Q09 to 4.56% during the same period of
2010.
HEALTH, BEAUTY, CONSUMER GOODS, GENERAL
MERCHANDISE AND OTHER
Sales in our Health, Beauty, Consumer Goods, General Merchandise
and Other division rose 12.60% compared to the third quarter of
2009. This growth was the result of an increase in offers and
promotions that stimulated the demand for these products in the
marketplace as well as the organization of events for special
clients.
In 3Q10, this division represented 8.98% of GCS's total sales,
49 b.p. higher than in the same period of 2009, when it accounted
for 8.49%.
PUBLICATIONS
During the quarter sales from Citem, our Publication
distribution division, increased 7.00% compared to 3Q09. This
growth was due to the recuperation of various publishers and the
incorporation of important new publishers such as Impresiones
Aéreas.
As a result, its participation as a percentage of the Group's
total sales went from 2.76% in 3Q09 to 2.77% in the third quarter
of 2010.
GROSS INCOME
Grupo Casa Saba's quarterly gross income reached $859.58
million, an increase of 12.80% compared to the $762.04 million
registered during the same period of 2009. This was primarily due
to the Group's commercial strategies which were geared towards
increasing the Company's profitability levels.
As a result, the company's gross margin for the period was
11.52%, 65 basis points higher than the 10.87% margin achieved
during 3Q09.
OPERATING EXPENSES
During the third quarter, operating expenses were $602.55
million, 9.23% higher than the $551.63 million reported in the
third quarter of 2009. This increase was primarily due to an
increase in the work force in order to promote sales in the
government sector, among others.
Operating expenses as a percentage of total sales went from
7.87% in 3Q09 to 8.08% during the third quarter of 2010.
OPERATING INCOME
Operating income for the period was $257.02 million, 22.15%
higher than the $210.41 million obtained in 3Q09.
Consequently, the operating margin for the period was 3.45%, 45
basis points higher than the 3.00% margin reported during the third
quarter of 2009.
OPERATING INCOME PLUS DEPRECIATION AND
AMORTIZATION
Operating income plus depreciation and amortization for 3Q10 was
$274.14 million pesos, an increase of 16.45% compared to 3Q09.
Depreciation and amortization for the period was $17.11 million,
31.54% lower than the $25.00 million registered during the third
quarter of 2009.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents at the end of the third quarter of
2010 was $6,961.62 million, which corresponds to a loan related to
the acquisition of Farmacias Ahumada, S.A. (FASA) located in
Santiago, Chile.
COMPREHENSIVE COST OF FINANCING
During the quarter, GCS's comprehensive cost of financing (CCF)
reached -$47.79 million. This was primarily due to an exchange gain
related to the hedge used for the Chilean transaction.
OTHER EXPENSES (INCOME)
During the third quarter of 2010, the Company reported an income
of $22.57 million in other expenses (income), 29.47% higher than
the income reported during the same period of 2009. It is worth
mentioning that the expenses (income) from this line item were
derived from activities that are distinct from the company's
everyday business operations.
TAX PROVISIONS
Tax provisions were $34.73 million during the third quarter of
2010, 40.35% higher than the $24.74 million reported in 3Q09. Of
these, $36.54 million were related to Income Tax and -$1.81 million
to Deferred Income Tax.
NET INCOME
GCS's net income for the third quarter reached $292.66 million
pesos, an increase of 88.35% compared to the same period of 2009.
This growth was primarily due to the decrease in the CCF.
As a result, the net margin for the period was 3.92%, 170 basis
points higher than the 2.22% net margin obtained during the third
quarter of the previous year.
WORKING CAPITAL
During the third quarter of 2010, our accounts receivable days
increased by 10.3 days from 3Q09 to reach 79.6 days. In addition,
our accounts payable days rose 16.2 days versus 3Q09, to reach 72.5
days. Finally, our inventory days were 60.0 days, 0.4 fewer days
than we had during the same period of 2009.
Grupo Casa Saba is one of the leading
distributors of pharmaceutical products, beauty, personal care and
consumer goods, general merchandise, publications and other goods
in Mexico. With more than 115 years of experience, the Company
distributes to the majority of pharmacies, chains, self-service and
convenience stores, as well as other specialized national
chains.
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 Grupo Casa Saba
operates, as well as variations in the value of the Mexican peso as
compared with the US dollar.
Contacts: GRUPO CASA SABA Sandra Yatsko IR +52 (55)
5284-6672 Email Contact Alejandro Sadurni Gomez CFO Email Contact
IR Communications: Jesus Martinez Rojas +52 (55) 5644-1247 Email
Contact
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