SAB Saratoga Investment Corp

Financial Highlights: (All figures are expressed in millions of current Mexican pesos. Comparisons are made with the same period of 2010, unless otherwise stated. Figures may vary due to rounding practices).

• During the first quarter, GCS's net sales reached $12,782.22 million, an increase of 65.49% compared to 1Q10
• Gross income for the period was $2,215.77 million, an increase of 150.80%
• The gross margin for the quarter was 17.33%
• Quarterly operating expenses as a percentage of sales were 13.51%
• Operating income reached $488.64 million, which resulted in an operating margin of 3.82% for the period
• The quarterly CCF grew by 295.66% versus the same quarter of the previous year
• Operating income plus depreciation and amortization for 1Q11 rose 77.17% versus 1Q10 to reach $600.80 million
• Net profit for the quarter was $231.41 million, 6.49% lower than the net income reported in 1Q10
• As of March 31, 2011 the Group had $1,571.71 million in cash and cash equivalents

Grupo Casa Saba (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 first quarter of 2011.

QUARTERLY EARNINGS Several years ago, Grupo Casa Saba entered a stage of expansion as part of its strategy to increase the company's profitability. Since then, the Group has completed acquisitions in several South American countries, beginning in May 2008 with the acquisition of the Brazilian pharmacy chain Drogasmil (Casa Saba Brasil). In September 2010, the company acquired 97.8% of Farmacias Ahumada, S.A., a chain of more than 1,200 pharmacies with operations in Chile, Mexico and Peru and, as a result, has reclassified its divisions in accordance with its strategy, creating a new division known as "Retail Pharmacy."

Consequently, GCS will report the results of its affiliates that distribute pharmaceutical and non-pharmaceutical products in Mexico to both its private sector (Distribution -- Private Pharma) and government sector (Distribution -- Government Pharma) clients. Sales from CITEM and the Health, Beauty, Consumer Goods, General Merchandise and Others division will continue to be reported separately within this new business division.

As a result, the majority of the figures presented in this report are not comparable with those that were reported during the same quarter of 2010.

NET SALES Net sales during the first quarter of 2011 grew 65.49%, a significant increase compared to 1Q10. The Group sold $12,782.22 million pesos in the period versus $7,724.08 million pesos in sales during the same quarter of the previous year.

This was primarily the result of the acquisition of Farmacias Ahumada, S.A. and the consolidation of its sales.

SALES BY DIVISION

DISTRIBUTION DIVISION

DISTRIBUTION - PRIVATE PHARMA Quarterly sales for this division reached $5,825.93 million pesos and represented 45.58% of the Group's overall sales for the period.

DISTRIBUTION - GOVERNMENT PHARMA Sales in our Government Pharma division increased 23.52% during the first quarter of 2011 to reach $162.84 million. This compared favorably to the $131.84 million in sales registered during the first quarter of 2010 and can be attributed in large part, to an increase in sales to the IMSS, ISSSTE and various other state government institutions.

This division represented 1.27% of the Group's total sales during the quarter, a decline of 44 basis points compared to the 1.71% participation that it had in 1Q10. This decrease is due to the higher base resulting from the significant increase in the company's overall sales this quarter compared to the same period of the previous year.

HEALTH, BEAUTY, CONSUMER GOODS, GENERAL MERCHANDISE AND OTHER Sales in our Health, Beauty, Consumer Goods, General Merchandise and Other division grew by 2.71% compared to the first quarter of 2010 to reach $660.22 million pesos. This was the primarily the result of an increase in promotions for seasonal high priority categories.

As a percentage of the Group's total sales, this division represented 5.17% during the quarter, a decline of 315 basis points compared to 1Q10. Its participation was diluted as a result of the increase in the Group's overall sales compared to the same quarter of 2010.

PUBLICATIONS Sales for CITEM, the company's publications distribution division, rose 14.27% during the first quarter of 2011 compared to the same period of 2010. This increase was due to the incorporation of new titles into the catalog during the period.

As a result, this division's participation as a percentage of total sales went from 2.46% in 1Q10 to 1.70% in 1Q11 and was also affected by the higher base resulting from the increase in total sales.

RETAIL PHARMACY During the quarter, the new retail pharmacy division reported sales of $5,916.09 million pesos and represented 46.28% of the Group's total sales.

GROSS INCOME During the first quarter of the year, the Group's gross income grew 150.80%, from $883.46 million during the same period of the previous year to $2,215.77 million this quarter.

As a result, the company's gross margin for the period was 17.33% compared to the 11.44% margin posted in 1Q10.

OPERATING EXPENSES GCS's operating expenses reached $1,727.13 million in 1Q11, an increase of 206.38% compared to the first quarter of 2010 when expenses were $563.71 million.

Operating expenses accounted for 13.51% of the Group's overall sales versus the 7.30% margin registered during the same period of 2010.

OPERATING INCOME Quarterly operating income grew 52.82% to reach $488.64 million pesos, higher than the $319.74 million reported in 1Q10.

As a result, the operating margin for the period was 3.82%, slightly lower than the 4.14% margin reported in the first quarter of 2010.

OPERATING INCOME PLUS DEPRECIATION AND AMORTIZATION Operating income plus depreciation and amortization for the first quarter of 2011 was $600.80 million pesos, an increase of 77.17% compared to the $339.12 million pesos reported during the first quarter of 2010.

The company's EBITDA margin for the quarter was 4.70%, somewhat higher than the 4.39% margin registered during the same period of the previous year.

CASH AND CASH EQUIVALENTS At the end of the first quarter of 2011 the company's cash and cash equivalents totaled $1,571.71 million pesos.

COMPREHENSIVE COST OF FINANCING GCS's comprehensive cost of financing (CCF) went from $54.92 million in 1Q10 to $217.29 million during the first quarter of this year, an increase of 295.66%.

This was primarily due to the increase in interest payments related to the credits the company obtained in order to acquire Farmacias Ahumada, S.A. as well as the interest generated from the use of short-term credits for our operations.

OTHER EXPENSES (INCOME) During the first quarter of 2011, the Company registered an income in the Other Expenses (Income) line item of $8.34 million pesos compared to an income of $6.96 million obtained during the same period of 2010. 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.

TAX PROVISIONS Grupo Casa Saba's tax provisions for 1Q11 totaled $48.28 million pesos, 98.44% higher than the $24.33 million paid by the Group during the first quarter of 2010. Of these, $50.84 million were related to income tax payments and ($2.56) million were for deferred income tax.

NET INCOME Net income for the quarter was $231.41 million pesos, a decline of 6.49% compared to the first quarter of 2010. This was primarily the result of the increase in the CCF as well as the company's operating expenses.

Consequently, the net margin for the period was 1.81%, 139 basis points lower than the 3.20% net margin registered during the same quarter of 2010.

WORKING CAPITAL During the first quarter of 2011, the Group's accounts receivable days declined by 13.9 days from 1Q10 to reach 59.1 days. In addition, the accounts payable days increased by 18.4 days versus 1Q10, to reach 93.3 days. Finally, our inventory days were 63.5 days, 9.3 more days compared to the same period of the previous year.

Contacts: GRUPO CASA SABA Sandra Yatsko +52 (55) 5284-6672 Email Contact IR Communications: Jesus Martinez Rojas +52 (55) 5644-1247 Email Contact

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