Apresentação 3 Q13 final
0 likes522 views
Cia Hering reported its 3Q13 results with the following highlights: - Gross revenues increased 12% to R$435 million driven by double-digit growth of its Hering and Hering Kids brands. - EBITDA grew 10.8% to R$82.5 million and the EBITDA margin was stable at 22.8% despite higher profit sharing provisions. - Net income increased 6.7% though margins were impacted by higher tax expenses. - Cash flow was affected by a temporary increase in inventory as the company prepares to implement the second phase of its SAP system in 2014. - The outlook notes a challenging business environment but evolution of the brand management structure and the
Apresentação 3 Q13 final
- 1. 3Q13 Results Conference Call October 25, 2013
- 2. DISCLAIMER This presentation contains forward-looking statements regarding the prospects of the business, estimates for operating and financial results, and those regarding Cia. Hering's growth prospects. These are merely projections and, as such, are based exclusively on the expectations of Cia. Hering management concerning the future of the business and its continued access to capital to fund the Company’s business Plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the Brazilian economy and the industry, among other factors and risks disclosed in Cia. Hering’s filed disclosure documents and are, therefore, subject to change without prior notice.
- 4. 3Q13 OVERVIEW Gross Revenues (R$ million) Hering Store Network (Sell Out R$ million) 3Q12 R$ 279.7 +10.7% R$ 309.8 R$ 33.8 +36.0% +4.2% +7.5% R$ 24.9 R$ 7.5 +5.3% -2.4% - R$ 38.4 R$ 23.2 +71 Stores R$ 46.1 R$ 36.8 Foreign Market +8.1% 3Q13 R$ 7.9 R$ 388.4 +12.0% 303.0 Distribution Network 303.0 327.5 3Q12 R$ 435.0 303.0 Expansion SSS 3Q13 EBITDA (R$ million) 3Q12 3Q13 % Domestic Market 3Q13 % Growth Multi-brand Retail 16,963 clients 17,717 clients 51.4% 19.3% Franchises 502 stores 614 stores 36.1% 8.4% Webstore 3 stores 3 stores 1.3% -3.0% Own Stores 62 stores 69 stores 11.2% -1.4% Channel 23,0% 22,8% 10.8% 74.4 82.5 3Q12 3Q13 EBITDA EBITDA Margin 4
- 6. SALES PERFORMANCE Gross Revenues per Brand (R$ million) Gross Revenes per Channel (R$ million) 7.5% 23.2 36.8 -1.4% 24.9 38.4 4.2% 46.1 33.8 47.6 5.5 47.0 5.3 -3.0% 151.5 36.5% 139.8 8.4% 279.7 12.1% 309.8 19.3% 180.5 3Q12 Hering 3Q13 Hering Kids PUC dzarm. 3Q12 Multibrand Retail 215.4 3Q13 Franchise Webstore Owned Stores In 3Q13, Gross Revenues reached R$ 435.0 million (+12.0%) with double digit growth across Hering and Hering Kids brands. 7
- 7. GROSS PROFIT AND EBITDA Gross Profit and Gross Margin (R$ million) EBITDA and EBITDA Margin (R$ million ) 46.2% 45.1% 44.9% 43.9% 23.0% 22.8% 10.8% 13.9% 142.2 162.0 74.4 3Q12 Gross Profit 3Q13 Gross Margin Cash Gross Margin 82.5 3Q12 3Q13 EBITDA EBITDA Margin 1.0 p.p. expansion in gross margin due to lower promotional activity in the quarter, compensated by the PPR (Profit Sharing Program) provisioning, keeping the EBITDA margin pratically stable. 8
- 8. NET INCOME Net Income (R$ million) 16.9% 16.1% 6.7% 54.6 3Q12 Net Income 58.3 3Q13 Net Margin +6.7% growth in Net Income, as a result of EBITDA growth combined with higher Income & Social Contribution Taxes. 9
- 9. CAPEX SAP Project – Phase 2 Capex (R$ million) 25.4 Implementation 2nd Phase (Project Jul/2011-Jan/2014) 2.4 0.8 19.9 1.5 0.3 • • 7.5 27.6% 5.4 2014 • Production 14.7 12.7 2008 3Q12 Industry Future Sales Logistics 3Q13 IT Others Implementation 1st Phase (Project Aug/2007-Mar/2008) • • Back-Office Accounting Stores CapEx totalled R$ 25.4 million in 3Q13, with highlight to IT infrastructure (R$ 7.5 million) due to the process of extending the SAP to the commercial and logistics departments. Time
- 10. SAP Project Inventory* (Items) 2Q13 3Q13 Inventory w/ SAP 4Q13 1Q14 Additional Inventory SAP Preparation 2Q14 Previous Year *Finished Goods + Resale Goods The Company is carrying additional inventory due to the preparation for implementing the SAP and foresees a normalization of inventory levels throughout 1S14. 11
- 11. CASH FLOW Cash Flow - Consolidated (R$ thousand) 3Q12 3Q13 Chg. EBITDA Non cash items Current Income tax and Social Contribution Working Capital Investment Decrease in trade accounts receivable Decrease (increase) in inventories Increase in accounts payable to suppliers Increase in taxes payable Others CapEx Free Cash Flow 74,431 815 (18,022) 48,779 33,835 (10,459) 20,610 (1,748) 6,541 (19,875) 86,128 82,461 1,345 (19,099) (6,717) 63,151 (84,008) 21,735 (5,043) (2,552) (25,405) 32,585 8,030 530 (1,077) (55,496) 29,316 (73,549) 1,125 (3,295) (9,093) (5,530) (53,543) Free Cash Flow of R$32.6 million, afected mainly by the punctual increase in inventory due to the preparation for implementing the SAP. 12
- 13. OUTLOOK Challenging business enviornment throughout the next quarters. Evolution of the organizational structure of the Company with a focus on Brand Management 1st Cia. Investor Day: Dec/10 14
- 14. INVESTOR RELATIONS TEAM Fabio Hering – CEO Frederico Oldani – CFO and IRO Alissa Prince – IR Manager Daniel Popovich – IR Analyst Tel. +55 (11) 3371-4867 E-mail: ri@hering.com.br Website: www.ciahering.com.br/ri