Grupo Casa Saba Reports - With the Consolidation of FASA, Sales Reached $12 Billion Pesos
MEXICO CITY -- (Marketwire) -- 07/28/11 -- Grupo Casa Saba (NYSE: SAB)
Mexico City, Mexico, July 28, 2011. 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 and one of the most important pharmacy chains in Latin America, announces its consolidated financial and operating results for the second quarter of 2011.
During the second quarter of 2011, our Distribution division reported mixed results, primarily as a result of the competitive environment that exists in the national market for the sale of pharmaceutical products. Given that current market conditions, as well as other factors, have provoked an increase in our accounts receivable days with some clients, we are actively working with clients and providers in order to improve our growth and profitability levels. In addition, internally we are implementing strict measures aimed at controlling operative and administrative costs as well as inventory management and control measures which we expect will allow us to improve our levels of operative efficiency and profitability.
In our Retail Pharmacy division, the results that were obtained during the quarter were positive, particularly in terms of operational efficiency and, therefore, profitability. The plans that were implemented to operate with greater control over expenses are generating results that are in line with our expectations and, at the country level (Mexico, Brazil and Chile) our network of pharmacies has seen improvement in its efficiency indicators in terms of operative expenses and, therefore, profitability.
We will continue with our operational strategy that is focused on improving the efficiency of each of our business units, always seeking to improve the availability of the products that our clients demand.
DISTRIBUTION - PRIVATE PHARMA
This division represented 39.35% of the Group's overall sales during 2Q2011.
DISTRIBUTION - GOVERNMENT PHARMA
As a result, during the second quarter of 2011, this division generated 2.78% of the Group's total sales.
HEALTH, BEAUTY, CONSUMER GOODS, GENERAL MERCHANDISE AND OTHER
As a percentage of the Group's total sales, this division represented 6.43% during the quarter.
As a result, this division's participation as a percentage of total sales was 1.67% in 2Q2011.
Based on the new sales breakdown, the distribution business represented 50.24% of total sales and the retail pharmacy business 49.76%.
Operating expenses accounted for 14.45% of our total sales in 2Q2011.
As a result, the operating margin for the period was 3.19%, 36 basis points lower than the 3.55% margin reported in the same quarter of 2010.
OPERATING INCOME PLUS DEPRECIATION AND AMORTIZATION
The company's operating income plus depreciation and amortization margin for the quarter was 4.10%, which compared favorably with the 3.74% margin registered during the same quarter of the previous year.
COMPREHENSIVE COST OF FINANCING (CCF)
OTHER EXPENSES (INCOME)
The net margin for the period was 0.57%, 162 basis points lower than the 2.19% net margin obtained during the same quarter of 2010.
(1) As part of its strategy to increase the company's profitability, Grupo Casa Saba 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, created a new division known as "Retail Pharmacy."
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.
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