Hypermarcas announces organic growth of 15.7%, Adjusted

Hypermarcas announces organic growth of 15.7%, Adjusted EBITDA of
R$286.9 million in 1Q15
São Paulo, April 24, 2015 – Hypermarcas S.A. (BM&FBovespa: HYPE3; Reuters: HYPE3.SA; Bloomberg: HYPE3
BZ; ADR: HYPMY) announces its financial results for the first quarter of 2015. Financial data shown here are taken
from quarterly financial information of Hypermarcas S.A., prepared in accordance with norms of the Brazilian
Accounting Pronouncement Committee (CPC) and International Financial Reporting Standards (IFRS) issued by the
International Accounting Standards Board (IASB).
Highlights
• Net Revenue of R$1,187.7 million in 1Q15, 15.7% above 1Q14 (ex-third parties)
• Adjusted EBITDA of R$286.9 million in the quarter, 10.8% above 1Q14
• Sell-out demand grows 19.0% in Pharma and 20.6% in Consumer
• Acceleration of market share gains: +1.1 p.p. in Pharma and +1.0 p.p. in Consumer, with +3.2 p.p. in
generics and +5.8 p.p. in infant diapers
Table 1
(R$ million)
1Q14
% NR
1Q15
% NR
Net Revenue
1,058.9
100.0%
1,187.7
100.0%
12.2%
681.1
64.3%
735.0
61.9%
7.9%
-2.4 p.p.
S,G&A (ex-Marketing)
(230.8)
21.8%
(242.1)
20.4%
4.9%
-1.4 p.p.
Marketing
(208.7)
19.7%
(223.5)
18.8%
7.1%
-0.9 p.p.
259.0
24.5%
286.9
24.2%
10.8%
-0.3 p.p.
Net Income
90.2
8.5%
90.7
7.6%
0.5%
-0.9 p.p.
EPS
0.14
-
0.14
-
0.3%
-
Gross Profit
Adjusted EBITDA (1)
(1)
(2)
∆%
∆ NR p.p.
-
EBITDA of continuing operations before non-recurring expenses and other non-cash expenses. See
Reconciliation of Adjusted EBITDA in Table 8.
Free Cash Flow (=) Cash Flow from Operations (+) Purchase of Property, Plant and Equipment (+) Sale
of Property Plant ad Equipment (+) Purchase of Intangible Assets.
1
Operating Scenario
In the first quarter of 2015, Hypermarcas achieved results which are consistent with its profitable growth
strategy, with value creation to its shareholders. The Company has started to harvest the fruit of the restructuring
plan carried out from 2011 through 2014, a period when we invested more than R$1.0 billion in the consolidation
of the 23 companies acquired from 2007 until 2010, with focus on the creation of an operating platform with
superior competitive advantage and on the strengthening of our businesses and brands.
We invested in demand generation, with strong investments in mass media marketing, medical visits and
promotional activities in the points of sale. We also invested heavily in innovation, with several launches of new
successful products. We modernized our brands, plants and logistics, always aiming at high-capillarity distribution
and low-cost operations.
As a result of all this effort, in spite of the economic crisis, our sell-out demand proved to be robust in the
beginning of the year, growing around 20.0% in both business divisions, leading to an acceleration of market
share gains. In Pharma, the demand grew 19.0%; in Consumer, 20.6%.
We gained +1.1 p.p. market share in Pharma, and the division climbed in March to the 1st position of the market,
according to the IMS Health’s PPP ranking1. We consolidated the 2nd position in generics and grew 27.5% in
prescription products. In Consumer, we gained +1.0 p.p., climbing to 8.6% of the market. Several relaunches of
2014 had very positive effects, with market share gains in many of our businesses and brands. In infant diapers,
we gained +5.8 p.p. market share, tied at the 2nd position in volume in the market.
During the quarter, the Company’s Net Revenue reached R$1,187.7 million, a 12.2% growth compared to 1Q14. In
comparable basis, we grew 15.7% (excluding third parties). This expansion was consistent in both business
divisions, which posted double-digit growth: 15.0% in Consumer and 16.2% in Pharma, excluding third parties.
In terms of operating results, the Company’s Adjusted EBITDA was R$286.9 million, 10.8% above 1Q14, or 17.1%
higher, excluding third parties. We highlight that, in spite of the reduction of our Gross Margin in the quarter, our
selling, marketing and administrative expenses were diluted, resulting in Adjusted EBITDA Margin of 24.2%,
relatively stable compared to 1Q14. The reduction of the Gross Margin in the period was mainly due to the
depreciation of the Real against the Dollar, greater than 20.0% in the period. To offset this impact and other cost
increases, the Company has launched since April new list prices, with weighted average adjustment of 8.0%.
In terms of Net Income, the Company reached R$90.7 million in the quarter, slightly above 1Q14. This result was
not higher because of the increase of the IPCA inflation, which raised our financial expenses by approximately
R$14.0 million in the quarter.
We have done much, but there is much more to do. We continue to believe in Brazil, in spite of the crisis we are
going through, and will continue to invest in our businesses. We believe that it is in moments of crisis such as the
one we are steering through that a competitive platform such as the one we created opens new opportunities so
that the Company may accelerate its growth. Market share gains during these moments, when we witness an
increased risk aversion, prove to be even more attractive and profitable to our shareholders.
1
According to the PPP – Pharmacy Purchase Price criteria, at prices effectively practiced in the market.
2
PHARMA DIVISION
The sell-out demand for products of the Pharma division increased 19.0% compared to the first quarter of 2014,
according to data from IMS Health2. This performance, above market growth, raised the Company’s market share
to its highest historical level in 1Q15, equivalent to 10.6% of the Brazilian pharmaceutical market in value terms,
with peak of 11.1% in March, when the Company became also the largest pharmaceutical company in Brazil3.
In February, Hypermarcas also climbed to the second position in the Brazilian generics market in units, with the
Neo Química franchise. Since then, the company is consolidating this position.
Further, according to the IMS Health, the demand for the Company’s prescription drugs (RX) advanced 27.5%
compared to 1Q14, with the success of Addera D3 pills, a product launched in 2014, and the improvement at the
productivity of the medical demand generation team.
Aiming at broader coverage of the Brazilian pharmaceutical market, the Company continued in the quarter on its
innovation and new products launches, with the launch in the prescription line of the contraceptive Lydian, also
indicated for treatment of polycystic ovary syndrome. In the OTC portfolio, the Company launched the new brand
extension Doril Enxaqueca, which revitalizes the Doril brand with a new version indicated for treatment of
migraines.
In generics, the Company obtained new registers for molecules such as the anxiolytic citalopram, one of the top
20 molecules of the market in value, and the eye drop olopatadine – the first register for a generic version in the
Brazilian market.
During the quarter, the division also strengthened initiatives for better relationship with clients and improved
execution in the points of sale. New projects (Shared Business Plans) are under way with large retailers and
distributors, as to identify with clients joint opportunities based on analytical data. In parallel, the Hypertrade
program, for better control and optimization of trade marketing activities, is resulting in higher frequency of store
visits, with lower visit duration and reduction of stock outs in the retail space.
CONSUMER DIVISION
In the beginning of the year, the sell-out demand for products of the Consumer division grew 20.6% compared to
the prior year, according to data from Nielsen for January and February, resulting in an 8.6% market share, a 1.0
percentage point increase.
In high-volume categories, such as infant diapers, hair care and deodorants, market share gains accelerated, given
the Company’s brands smart choice positioning, with attractive value proposition for clients and consumers. In
particular, the sell-out demand for the Company’s infant diapers increased 34.5%, also according Nielsen data,
with +5.8 p.p. gain compared to the first two months of 2014, surpassing the mark of 15.0% of the market in
value, with leadership in volume in key accounts in the food channel.
The performance in the quarter was also a consequence of the assertiveness of recent launches in several
Consumer categories, such as nail polish, men’s care and infant diapers, supported by a robust sales, marketing
and merchandising platform. In 1Q15, the Company’s innovation index remained at 77%, with launches like the
new line of Pom Pom diapers – the only brand in the market to offer 14-hour protection for babies. The division
also launched Monange S.O.S, for dried skin, and renewed the hair care line of éh!, with new formulation and
packaging.
2
3
According to the PPP – Pharmacy Purchase Price criteria, at prices effectively practiced in the market.
Also according to the PPP criteria.
3
The division’s Gross Margin in the quarter was impacted by the depreciation of the Brazilian Real against the
Dollar, which caused a short-term impact on costs. In April, the Company introduced new list prices in the market,
with average increase of 8.0% in the Consumer portfolio. In addition, the Company analyzes FX rates to assess
additional price increases.
The division is still focused in improving its execution in the points of sale, by reviewing routes of the trade
marketing team for broader coverage of the retail channel, especially in the pharmaceutical channel. The
Company also keeps Category Management projects with large clients in segments in which it has market
leadership, such as condoms, sweeteners and incontinence diapers, in addition to high volume categories such as
infant diapers.
4
Earnings Discussion
Income Statement
The following table is a summary of Hypermarcas’ Income Statement:
Table 2
(R$ million)
1Q14
% NR
1Q15
% NR
∆
Net Revenue
1,058.9
100.0%
1,187.7
100.0%
12.2%
Gross Profit
681.1
64.3%
735.0
61.9%
7.9%
Marketing
(208.7)
-19.7%
(223.5)
-18.8%
7.1%
Selling Expenses
(173.0)
-16.3%
(178.6)
-15.0%
3.3%
General and Administrative Expenses
(57.8)
-5.5%
(63.5)
-5.3%
9.8%
Other Operational Net Expenses
(22.5)
-2.1%
(38.8)
-3.3%
72.4%
(0.4)
0.0%
(1.0)
-0.1%
167.6%
Equity in Subsidiaries
Continuing Operations EBIT
218.7
20.6%
229.6
19.3%
5.0%
Net Financial Expenses
(107.9)
-10.2%
(132.1)
-11.1%
22.4%
Income Tax and CSLL
(18.3)
-1.7%
(3.7)
-0.3%
-79.6%
(2.2)
-0.2%
(3.1)
-0.3%
39.7%
Net Income from Discontinued Operations
Net Income (Loss)
EBITDA (1)
Adjusted EBITDA
(1)
(1)
90.2
8.5%
90.7
7.6%
0.5%
245.0
23.1%
254.6
21.4%
3.9%
259.0
24.5%
286.9
24.2%
10.8%
Based only on Continuing Operations.
5
Net Revenue
Chart 1
Net Revenue (R$ mm)
Δ 1Q15 vs 1Q14
12.2%
1,187.7
1,058.9
1Q14
1Q15
Table 3
(R$ million)
1Q14
Pharma
Pharma ex-Third Parties
(1)
Consumer
Total
Total ex-Third Parties
(1)
(1)
1Q15
∆
612.0
673.8
10.1%
578.0
671.8
16.2%
446.9
513.9
15.0%
1,058.9
1,187.7
12.2%
1,024.9
1,185.7
15.7%
Revenue from the Company’s brand portfolio (excluding
third-party manufacturing contracts)
Net Revenue in the Pharma division increased 16.2% in the quarter compared to 1Q14, excluding sales related to
third-party manufacturing contracts, a performance above the market expansion in the period. Including third
parties, growth was 10.1%.
Net Revenue in the Consumer division increased 15.0% compared to 1Q14, a similar rate as 4Q14. Such growth is
consequence of the strategy of supplying smart choice products with attractive value propositions for clients and
consumers, especially in selected high-volume categories, such as infant diapers.
6
Gross Profit
Chart 2
Chart 3
Gross Margin (%)
Gross Profit (R$ mm)
Δ 1Q15 vs 1Q14
Δ 1Q15 vs 1Q14
7.9%
-2.4 p.p.
64.3%
735.0
61.9%
681.1
1Q14
1Q14
1Q15
1Q15
Table 4
(R$ million)
1Q14
% NR
1Q15
% NR
∆
Pharma
458.3
74.9%
517.0
76.7%
1.8 p.p.
Consumer
222.7
49.8%
218.1
42.4% -7.4 p.p.
Total
681.1
64.3%
735.0
61.9%
-2.4 p.p.
In 1Q15, Gross Margin in the Pharma division increased 1.8 p.p. compared to the prior year, to 76.7% of Net
Revenue. In 1Q14, the margin was influenced by the sale of remaining inventory of third-party products.
In Consumer, the Company kept a more promotional strategy in high-volume categories. This effect, combined
with cost increases, mostly because of FX variation, resulted in a Gross Margin reduction to 42.4% in the quarter,
against 49.8% in 1Q14.
Marketing Expenses
Table 5
(R$ million)
1Q14
% NR
Marketing Expenses
(208.7) -19.7%
1Q15
% NR
(223.5) -18.8%
∆
7.1%
Advertisement and Consumer Promotion
(83.9)
-7.9%
(74.2)
-6.2%
-11.6%
Trade Deals
(57.9)
-5.5%
(74.2)
-6.2%
28.1%
Medical Visits, Promotions and Samples
(66.9)
-6.3%
(75.2)
-6.3%
12.4%
Marketing expenses grew 7.1% in nominal terms and amounted to 18.8% in 1Q15, against 19.7% in 1Q14. The
expansion of Marketing Expenses below the Net Revenue growth is in line with the Company’s strategy for the
year.
7
Selling Expenses
Table 6
(R$ million)
1Q14
Selling Expenses
(173.0) -16.3%
(178.6) -15.0%
3.3%
(130.7) -12.3%
(135.8) -11.4%
3.9%
Commercial Expenses
Freights
Delinquency
% NR
1Q15
% NR
∆
(33.2)
-3.1%
(38.0)
-3.2%
14.2%
(9.1)
-0.9%
(4.9)
-0.4%
-46.2%
Selling Expenses were reduced by 1.3 p.p. to 15.0% of Net Revenue in 1Q15, compared to 1Q14. The impact of
wage inflation upon the Commercial Expenses was offset in the quarter by greater efficiency in other expenses
not related to personnel, mainly logistics expenses.
General / Administrative Expenses & Other Revenues and Operating Expenses
Table 7
(R$ million)
1Q14
% NR
1Q15
% NR
∆
General, Administrative and Other Expenses
(57.8)
-5.5%
(63.5)
-5.3%
9.8%
Other Operating Revenues (Expenses)
(22.5)
-2.1%
(38.8)
-3.3%
72.4%
The 9.8% growth of G&A expenses, compared to the prior year, was close to wage inflation. As percentage of Net
Revenue, there was a 0.2 p.p. reduction compared to 1Q14.
Other Operating Expenses, net of non-recurring effects, amounted to R$22.1 million in 1Q15 and were composed
essentially by inventory losses. Non-recurring expenses in the period corresponded substantially to labor
indemnizations related to the end of activities in the former Mantecorp plant in Rio de Janeiro and remaining
inventory write-off before the transfer of the real estate, which took place in April 1.
Adjusted EBITDA
Chart 4
Chart 5
Adjusted EBITDA (R$ mm)
Δ 1Q15 vs 1Q14
Adjusted EBITDA margin (%)
10.8%
Δ 1Q15 vs 1Q14 -0.3 p.p.
286.9
24.5%
24.2%
1Q14
1Q15
259.0
1Q14
1Q15
8
Table 8 - Adjusted EBITDA Reconciliation
(R$ million)
1Q14
Net Income
(-) Net Income from Discontinued Operations
% NR
1Q15
% NR
∆
90.2
8.5%
90.7
7.6%
0.5%
2.2
0.2%
3.1
0.3%
39.7%
(+) Income Tax and CSLL
18.3
1.7%
3.7
0.3%
-79.6%
(+) Net Interest Expenses
107.9
10.2%
132.1
11.1%
22.4%
218.7
20.6%
229.6
19.3%
5.0%
26.3
2.5%
25.0
2.1%
-5.1%
245.0
23.1%
254.6
21.4%
3.9%
12.2
1.1%
31.1
2.6%
155.6%
1.8
0.2%
1.2
0.1%
-33.0%
259.0
24.5%
286.9
24.2%
10.8%
EBIT
(+) Depreciations / Amortizations
EBITDA (1)
(+) Non-Recurring Expenses
(+) Non-Cash Expenses
Adjusted EBITDA
(1)
(1)
Refers only to Continuing Operations – please refer to Explanatory Note 15 of the quarterly financial information.
Adjusted EBITDA amounted to R$286.9 million in 1Q15, a 10.8% growth compared to 1Q14. The 2.4 p.p. Gross
Margin reduction in the same period was partially offset by operating leverage over SG&A expenses (exmarketing) and by lower aggressiveness in Marketing Expenses, so that the Adjusted EBITDA Margin was 24.2% of
Net Revenue in the quarter, with slight reduction of 0.3 p.p. compared to 1Q14.
It is worth to hightlight that the sale of remaining inventoru of third-party products resulted in a R$13.9 million
contribution to the Adjusted EBITDA in 1Q14. Disregarding that amount, the Adjusted EBITDA growth would reach
17.1%, close to the expansion of Net Revenue (ex-third parties) in the period.
Net Financial Expenses
Table 9
(R$ million)
1Q14
% NR
1Q15
% NR
∆ R$
Net Financial Expenses
(107.9)
-10.2%
(132.1)
-11.1%
(24.2)
Net Interest Expenses
(75.8)
-7.2%
(89.9)
-7.6%
(14.1)
Cost of Hedge and FX Gains (Losses)
(22.9)
-2.2%
(33.3)
-2.8%
(10.4)
Monetary Adjustment on Contingencies
(3.7)
-0.4%
(3.8)
-0.3%
(0.1)
NPV Adjustment Realization
(5.4)
-0.5%
(5.1)
-0.4%
0.3
Net Financial Expenses increased R$24.2 million in 1Q15 compared to 1Q14. This increase is mainly explained by
the higher IPCA inflation in the period, which generated an additional expense of R$13.7 million, in the same
comparison basis.
9
Net Income
Table 10
(R$ million)
1Q14
Continuing Operations EBIT
1Q15
∆
218.7
229.6
5.0%
(107.9)
(132.1)
22.4%
(-) Income Tax and Social Contribution
(18.3)
(3.7)
-79.6%
(+) Discontinued Operation Net Income
(2.2)
(3.1)
39.7%
Net Income
90.2
90.7
0.5%
EPS
0.14
0.14
0.3%
(-) Net Financial Expenses
The Company’s Net Income amounted to R$90.7 million in 1Q15, virtually in the same level as 1Q14, in spite of
higher financial expenses in the period.
Cash Flow
Chart 6
Chart 7
Cash Flow from Operations (R$ mm)
Free Cash Flow (R$ mm)
Δ 1Q15 vs 1Q14 (108,0)
Δ 1Q15 vs 1Q14 (111,4)
171,0
146,6
63.0
1Q14
1Q15
35.2
1Q14
1Q15
Table 11
(R$ million)
1Q14
1Q15
Cash Flow from Operations
171.0
63.0
Net Purchase of Property, Plant and Equipment
(19.1)
(19.5)
Purchase of Property, Plant and Equipment
(55.1)
(42.3)
36.0
22.8
Sale of Property, Plant and Equipment
Purchase of Intangible Assets
(=) Free Cash Flow
(5.3)
(8.2)
146.6
35.2
Free Cash Flow was impacted in the quarter by lower operating cash generation, mostly as result of higher
inventory building, mainly raw materials, given the strong growth of volume sales in the past quarters.
On the other hand, with the evolution of the Company’s operating consolidation projects, the purchase of fixed
assets was reduced to R$42.3 million in 1Q15, against R$55.1 million in 1Q14.
10
Net Debt
Chart 8
Net Debt / EBITDA
3.12x
2.92x
2.71x
2.65x
2012
2013
2014
1Q15
Table 12
Long Term
(R$ million)
Balance on
Short Term
1Q15
Loans and Financing
Notes Payable
Gross Debt
Cash and Cash Equivalents
Net Debt
Unrealized Gain/Loss on Debt
Hedge
Net Debt After Hedge
5,053.7
1,692.6
2Q - 4Q
2016
297.9
58.4
50.5
7.9
5,112.1
1,743.1
305.8
2017
2018
870.2
932.6
870.2
932.6
2019
46.1
2020
44.7
-
-
46.1
44.7
2021
1,027.8
1,027.8
2022
43.9
2023>
98.0
-
-
43.9
98.0
(1,667.4)
3,444.7
(376.8)
3,068.0
The Company’s leverage remained virtually stable in 1Q15 compared to 4Q14, at 2.7x LTM Adjusted EBITDA. In
nominal terms, Net Debt after hedges increased, compared to the prior quarter, as a function of lower Free Cash
Flow after Financial Expenses.
11
Investor Relations Agenda
Earnings Conference Call
10019997
Portuguese
English
Date:
April 27, 2015
April 27, 2015
Time:
10:30 am (Brasília)
12:30 pm (Brasília)
9:30 am (New York)
11:30 am (New York)
Phone:
+55 (11) 2188-0155
+1 (877) 317-6776 (USA only)
+1 (412) 317-6776 (other countries)
Code:
Hypermarcas
Hypermarcas
Webcast:
Click here
Click here
Replay:
+55 (11) 2188-0400
+1 (877) 344-7529 (USA only)
+1 (412) 317-0088 (other countries)
Replay Code:
Hypermarcas
10063838
Contact Information
Phone: +55 (11) 3627-4242
Email: ri@hypermarcas.com.br
Site: www.hypermarcas.com.br/ir
Upcoming events
Table 13
Date
Event
Place
11-12-mai
UBS Latin America Consumer Conference
New York
13-14-mai
10th Itaú Annual LatAm CEO Conference
New York
01-04-jun
Jefferies Global Healthcare Conference
New York
08-jun
7th Bradesco London Conference
09-11-jun
DB Global Consumer Conference
Paris
12-jun
UBS LatAm Equities Ideas Conference
Milan
12-jun
dbAccess Latin American Consumer Day
24-25-jun
9-jul
24-jul
Citi Brazil Equity Conference
London
London
Sao Paulo
2Q15 Quiet Period
-
2Q15 Earnings Release
-
12
Disclaimer
This release contains forward-looking statements that are exclusively related to the prospects of the business, its
operating and financial results, and prospects for growth. These data are merely projections and, as such, based
exclusively on our management's expectations for the future of the business and its continued access to capital to
fund its business plan. These forward-looking statements substantially depend on changing market conditions,
government regulations, competitive pressures, the performance of the Brazilian economy and the industry,
among other factors, as well as the risks shown in our filed disclosure documents, and are therefore subject to
change without prior notice.
In addition, unaudited information herein reflects management's interpretation of information taken from its
quarterly information and their respective adjustments, which were prepared in accordance with market
practices and for the sole purpose of a more detailed and specific analysis of our results. Therefore, these
additional points and data must also be analyzed and interpreted independently by shareholders and market
agents, who should carry out their own analysis and draw their own conclusions from the results reported herein.
No data or interpretative analysis provided by our management should be treated as a guarantee of future
performance or results and are merely illustrative of our directors' vision of our results.
Our management is not responsible for compliance or accuracy of the management financial data discussed in
this report, which must be considered as for informational purposes only, and should not override the analysis of
our audited consolidated financial statements or our reviewed quarterly information for purposes of a decision to
invest in our stock, or for any other purpose.
13
Consolidated Income Statement (R$ thousand)
Table 14
1Q14
Net Revenue
Cost of Goods Sold
1Q15
1,058,875
(377,810)
1,187,709
(452,685)
681,065
735,024
Operating Income (Expenses)
Selling and Marketing Expenses
General and Administrative Expenses
Other Operating Income (Expenses)
Equity in Subsidiaries
(381,681)
(57,849)
(22,515)
(364)
(402,159)
(63,519)
(38,810)
(974)
Operating Income Before Equity Income and
Financial Result
Net Financial Expenses
Financial Expenses
Financial Income
218,656
229,562
(107,903)
(142,293)
34,390
(132,091)
(177,961)
45,870
Gross Profit
Profit Before Income Tax and Social Contribution
110,753
97,471
Income Tax and Social Contribution
(18,329)
(3,747)
Net Income from Contining Operations
Net Results from Discontinued Operations
92,424
(2,187)
93,724
(3,055)
Income for the Period
90,237
90,669
0.14
0.14
Earnings per Share – R$
14
Consolidated Balance Sheet (R$ thousand)
Table 15
Assets
Current Assets
12/31/2014
3/31/2015
Liabilities and Shareholders' Equity
4,825,420
5,046,090
Cash and Cash Equivalents
1,829,905
1,667,364
Suppliers
Accounts Receivable
1,553,826
1,596,020
Loans, Financing and Debentures
Inventories
661,666
743,233
Salaries Payable
Recoverable Taxes
525,518
576,017
Income Tax and Social Contribution
87,881
233,377
Taxes Payable
166,624
230,079
Accounts Payable
Financial Derivatives
Other Assets
Current Liabilities
Long Term Assets
Deferred Income Tax and Social Contribution
Recoverable Taxes
Financial Derivatives
Other Assets
3,013,792
706,642
793,910
1,731,023
1,692,566
156,550
124,647
5,693
0
41,744
45,024
289,899
306,284
51,660
50,505
Financial Derivatives
5,918
856
Non-Current Liabilites
10,898,562
11,263,362
3,422,599
3,695,496
3,073,876
3,361,133
9,062,271
9,231,064
444,540
589,262
15,242
13,555
254,125
256,521
Deferred Income Tax and Social Contribution
143,838
145,735
47,791
182,872
Taxes Payable
28,814
26,494
127,382
136,314
Notes Payable
7,639
7,892
Other Accounts Payable
9,068
8,237
156,778
142,185
2,586
3,820
7,475,963
7,567,866
Capital
5,269,124
5,269,124
Capital Reserve
1,421,371
1,422,605
(204,443)
(204,443)
989,911
989,911
0
90,669
13,887,691
14,277,154
Long Term Liabilities
Loans, Financing and Debentures
Provisions for Contingencies
Financial Derivatives
Investments
Investments
8,617,731
8,641,802
Shareholders' Equity
10
0
631
631
Property, Plants and Equipments
1,666,691
1,686,824
Equity Valuation Adjustments
Intangible Assets
6,950,399
6,954,347
Profit Reserves
Deferred Charges
0
0
13,887,691
14,277,154
Other Investments
Total Assets
3/31/2015
2,989,129
Notes Payable
Non-Current Assets
12/31/2014
Income for the Period
Total Liabilities and Shareholders' Equity
15
Consolidated Cash Flow Statement (R$ thousand)
Table 16
1Q14
1Q15
Cash Flows from Operating Activities
Income (Loss) Before Income Taxes including Discontinued Operations
Depreciation and Amortization
Impairment
Gain on Permanent Asset Disposals
Equity Method
108,508
94,253
26,339
24,988
1,460
2,665
527
(1,287)
364
974
Foreign Exchange (Gains) Losses
22,908
33,259
Interest and Related Expense
84,995
98,832
Stock Option Expense
1,841
1,234
25,150
16,598
Adjusted Results
272,092
271,516
Decrease (Increase) in Assets
Provisions (Delinquency, Inventories and Contingencies)
(30,983)
(184,333)
Trade Accounts Receivable
(4,787)
(47,077)
Inventories
(7,268)
(95,174)
(24,987)
(39,938)
656
(3,799)
5,403
1,655
Increase (Decrease) in Liabilities
(70,138)
(24,175)
Suppliers
(16,584)
49,798
(3,015)
(6,065)
Recoverable Taxes
Judicial Deposits and Others
Other Accounts Receivable
Income Tax and Social Contribution Paid
Taxes Payable
(6,097)
2,191
Salaries and Payroll Charges
(29,763)
(31,901)
Accounts Payable
(12,646)
(39,457)
Operations Interest Paid
(1,452)
3,052
Other Accounts Payable
(581)
(1,793)
170,971
63,008
Net Cash Provided by Operating Activities
Cash flows from Investing Activities
Acquisitions of Property, Plant and Equipment
(55,060)
(42,317)
Intangible Assets
(5,312)
(8,226)
Proceeds from the Sale of Assets with Permanent Nature
35,971
22,770
Interest and Others
20,752
30,462
Net Cash Provided by (Used in) Investing Activities
(3,649)
2,689
Cash Flows from Financing Activities
Capital Integralization
Borrowings
0
0
521,244
119,565
Treasury Stock Purchase / Sale
(16,295)
0
Repayment of Loans - Principal
(304,342)
(258,292)
Repayment of Loans - Interest
(61,330)
(88,528)
(758)
(983)
Net Cash Provided by (Used in) Financing Activities
139,277
(228,238)
Net Increase in Cash and Cash Equivalents
306,599
(162,541)
Cash and Cash Equivalents at the Beginning of the Period
1,158,833
1,829,905
Cash and Cash Equivalents at the End of the Period
1,464,674
1,667,364
305,841
(162,541)
Debt Issuance Cost
Statement of Increase in Cash and Cash Equivalents, Net
Change in Cash and Cash Equivalent
16
Other Information
Non Recurring Expenses
Table 17
1Q15
(R$ million)
1Q14
Other Non-Recurring Expenses
Expenses Related to Restructurings
(1)
Other Revenues
Non-Recurring from Continued Operations
Result from Divestitures / Discontinued Operations
Total Non-Recurring
Other
Revenues/
Expenses
Other
Lines
Total
9.4
5.6
12.3
17.9
23.3
27.9
2.1
30.0
(20.6)
(16.8)
-
(16.8)
12.2
16.7
14.4
31.1
2.2
-
3.2
3.2
14.4
16.7
17.6
34.3
(1)
Expenses related to the integration of acquired businesses, or operating restructuring costs, such as severance
and termination of labor and expenses with closing plants to transfer production to Goiás.
Cash Conversion Cycle
Table 18
(Days)
Receivables (1)
Inventories
4Q14 1Q15
93
107
∆ 1Q154Q14
14
118
148
30
(126)
(158)
(32)
85
97
12
(R$ million)
4Q14 1Q15
∆ 1Q154Q14
Receivables
1,554 1,596
42
Payables
Cash Conversion Cycle
Inventories
Payables
Working Capital
662
743
82
(707)
(794)
(87)
1,509 1,545
36
(1)
Calculations based on Gross Revenue of continuing and
discontinued operations.
17
Tax Amortization for Fiscal Purposes / Tax Credits
The Company holds R$2,707.0 million in goodwill to be amortized for fiscal purposes over the coming years,
according to the following table:
Table 19
(R$ million)
2Q - 4Q15
560.4
2016
657.1
2017
607.4
2018
593.2
2019
250.0
2020
36.3
2021
2.7
Total
2,707.0
Source: Hypermarcas
In addition, the Company holds the following tax credits:
i)
ii)
Recoverable Taxes: R$832.5 million (please refer to Explanatory Note 13 of the Quarterly Financial
Information);
Cash effect of Income Tax and Social Contribution Losses Carryforward: R$1,191.9 million (please
refer to Explanatory Note 21(a) of the Quarterly Financial Information).
Historical Net Revenue and Third Parties – Pharma Division
Table 20
(R$ million)
1Q12
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
Pharma
520.3
530.6
530.6
494.4
543.9
601.2
613.6
570.0
612.0
645.6
653.9
Third Parties
(12.1)
(18.9)
(13.0)
(17.7)
(9.9)
(24.8)
(39.9)
(7.2)
(34.0)
0.1
(0.8)
Pharma ex-Third Parties*
508.2
511.7
517.6
476.7
534.0
576.4
573.7
562.8
578.0
645.7
653.0
*
4Q14
672.5
672.5
1Q15
673.8
(2.0)
671.8
Revenue from the Company’s brand portfolio (excluding third-party manufacturing contracts).
18