Raia Drogasil S.A. · BMFBOVESPA:RADL3
Raia Drogasil — 4Q21 Earnings Presentation
23 slides from Raia Drogasil's earnings presentation, 2022
Slide 1: Earnings Presentation 4Q21
EARNINGS PRESENTATION 4Q21 DRAFT
Slide 2: Disclaimer
Disclaimer This presentation contains statements that are forward-looking within the meaning of Section 27A of the Securities Act of 1933 (the “Securities Act”) and Section 21E of the Exchange Act of 1934. Such forward-looking statements are only predictions and are not guarantees of future performa
Slide 3: Consolidated Highlights
Consolidated Highlights* › PHARMACIES**: 2,490 units in operation (240 openings and 49 closures) › MARKET SHARE: 0.3 p.p. increase to 14.2% national market share › GROSS REVENUE: R$ 25.6 billion, a 20.9% increase and 12.4% growth in mature stores › DIGITAL: R$ 2.1 billion, with 78.7% of growth and a
Slide 4: We opened 240 pharmacies and closed 49 in 2021
We opened 240 pharmacies and closed 49 in 2021 (average of 30 per year over last 2 years). We reiterate our guidance of 260 openings for 2022. Pharmacy count Age structure of pharmacy portfolio 2,490 10.4% 10.4% 10.4% 9.8% 9.6% 2,374 2,414 12.2% 10.9% 10.9% 9.8% 9.6% 2022 Guidance: 2,319 11.0% 10.0%
Slide 5: We expanded our presence to 485 cities in the 4Q21
We expanded our presence to 485 cities in the 4Q21, with 88% of openings consisting of Popular or Hybrid formats to serve the expanded middle class. Cities with pharmacies Network composition by format* Current LTM Openings portfolio 485 14% 12% 20% 409 33% 39% 356 322 56% 61% 51% 45% 41% 29% 30% 27
Slide 6: Entered AC, AP and RR; 14.2% market share
We entered the states of AC, AP and RR, expanding our presence to the entire country. We recorded a 14.2% market share, with a 0.3 p.p. gain. Pharmacy geographic presence Pharmacy market share RR: 1 AP: 2 25.7%25.7% PA: 43 MA: 26 AM: 13 PI: 16 CE: 58 RN: 17 17.0%17.1% PB: 19 PE: 86 13.9%14.2% AC: 1
Slide 7: Consolidated revenues grew 20.9% vs. 2020
Consolidated revenues grew 20.9% vs. 2020, driven by OTC and Generics. Consolidated gross revenue Retail sales mix R$ millions 2021 vs. 2020 0.2% 0.3% 0.3% 0.3% 0.3% 0.3% 0.4% * 25,606 6,853 HPC 25.1% 24.1% 25.6% 24.2% 23.5% 24.2% 24.5% Year: +16.0% 6,528 6,245 4Q: +11.6% 5,868 5,980 21,180 OTC 21.3
Slide 8: Mature stores grew on average 12.4% in the year
Mature stores grew on average 12.4% in the year, 2.3 percentage points above the year’s CPI of 10.1%. Consolidated revenue growth Same-Store sales growth - Retail Mature-Store sales growth - Retail 32.3% 26.2% 23.5% 20.9% 21.2% 15.3% 14.9% 16.7% 16.8% 12.4% 12.3% 15.1% 14.9% 11.5% 10.2% 9.1% 8.6% 7.
Slide 9: Digital sales reached R$ 2.1 billion
Digital sales reached R$ 2.1 billion, with a 9.2% penetration in the 4Q21. We recorded 15.9 cumulative app downloads with leading app MAU. Digital sales and penetration Cumulative app downloads MAU – App monthly active users R$ millions, % of retail sales Millions RD = base 100, month of Dec/21 15.9
Slide 10: Gross margin totaled 28.1%
Gross margin totaled 28.1%, an increase of 0.3 p.p. vs. the previous year. We recorded a sequential cash cycle improvement of 10 days. Gross margin Cash cycle* R$ millions, % of gross revenue COGS days, Gross revenue days 28.8% 28.5% 27.8% 28.1% 27.8% 27.8% 103.3 102.9 103.0 27.5% 98.1 98.7 7,206.2
Slide 11: Inflationary pressure and price recomposition expected in 2Q22
Small inflationary pressure in 2021, but very significant in the 4Q21. We expect a recomposition in the 2Q22, with a price increase above the forecasted average CPI. Dec-21 Feb-22 10.1% 10.4% 10.4% 10,0% Potential 2021 inflationary 8.3% 2022 recomposition 8.6% 7.5% Focus Feb-21 projection 5.2% 18-Fe
Slide 12: Contribution margin increased by 0.7 p.p. to 10.2%
Contribution margin increased by 0.7 p.p. to 10.2%. Annual dilution of 0.3 p.p. in selling expenses despite inflationary pressures in the 4Q21. Selling expenses Contribution margin % of gross revenue % of gross revenue 18.3% 18.4% 18.0% 17.5% 17.7% 17.9% 17.8% 10.8% 10.2% 10.3% 10.0% 10.1% 9.5% 9.7%
Slide 13: EBITDA growth of 26.5%
EBITDA growth of 26.5%, with a 0.4 p.p. annual margin expansion despite a G&A increase of 0.3 p.p. driven by inflation and the digital health transformation. General and administrative expenses Adjusted EBITDA % of gross revenue R$ millions, % of gross revenue 8.0% 3.5% 7.3% 3.1% 7.1% 7.0% 3.1% 6.7%
Slide 14: Adjusted net income totaled R$ 788.2 million in 2021
Adjusted net income totaled R$ 788.2 million in 2021, a 31.1% growth and a 0.3 p.p. margin increase. Recorded R$ 40.9 million in non recurring gains. Adjusted net income R$ millions, % of gross revenue 3.6% 3.7% 2.8% 3.1% 3.0% 3.0% EBITDA reconciliation - R$ millions 1Q21 2Q21 3Q21 4Q21 2021 2.7% Ne
Slide 15: Negative free cash flow of R$ 26.3 million
Negative free cash flow of R$ 26.3 million, with R$ 573.4 million in total cash consumption driven by IOC. Leverage was of 0.8x, a 0.2x increase. Cash flow 2021 2020 4Q21 4Q20 Net debt and financial leverage (R$ million) R$ millions, as a ratio of LTM adjusted EBITDA Adjusted EBIT 1,180.3 865.3 276.
Slide 16: Total value creation for stakeholders reached R$ 7.4 billion
The total value creation for our stakeholders increased by 23% and amounted to R$ 7.4 billion in the year. Total Value Added* Value Added per Stakeholder R$ billion R$ billion, % of the Yearly Total 7.4 0.8 6.0 10% 5.6 1.0 14% 3.3 44% 2.4 32% Taxes Employees 2019 2020 2021 Remuneration of 3rd Partie
Slide 17: RADL3 share price increased 4.0% in the 4Q21
RADL3 share price increased 4.0% in the 4Q21, performing 43.8 p.p. better than the IBOVESPA. Share appreciation RADL3 2,169.6 IBOVESPA 100.0 192.7 100.0 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Sep-20 Sep-21 Jun-14 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11
Slide 18: RD completed 10 years, with consistent growth
RD completed 10 years, with consistent growth and strong value creation. Pharmacies Gross revenue Adj. EBITDA (R$ billions) (R$ millions) 7x 1,837 5x Merger in 2011 25.6 1,429 1,344 3x 21.2 1,195 2,490 18.4 1,130 + 2,299 2,070 15.5 988 1,822 13.9 1,607 744 11.8 1,417 1,232 9.4 544 1,091 7.8 967 864
Slide 19: RD: Strategy 2030
RD: Strategy 2030 Take close care of people’s health and well-being during all times of their lives Healthier People (Employees, Customers, Community) Healthier Businesses (Diversity, Education, Shared Value) Healthier Planet (Emissions, Energy, Waste) Pharmaceutical Integral Health Retail New Pharm
Slide 20: We delivered solid growth with margin expansion
We delivered solid growth with margin expansion and neutral Free Cash Flow while significantly investing in our future. Solid growth with margin expansion and neutral Free Cash Flow › 240 new pharmacies opened, with a guidance for 260 new pharmacies in 2022 › Presence in all 27 states, contributing
Slide 21: Integral health ecosystem and investment in 7 start-ups via RD Ventures
We advanced in the construction of an integral health ecosystem with the investment in 7 start-ups via RD Ventures (R$ 200 million). Omnichannel Retail and Marketplace Retail Own Brands Customer Loyalty and Engagement Healthcare Consultations and Client Health Promotion Diagnostics Access, Adherence
Slide 22: Challenges and Opportunities for 2022
Challenges and Opportunities for 2022 Accelerate the digitalization of our relationship with the customer › Improve the customer’s experience with constant NPS monitoring; › Reduce delivery times in major urban centers; › Evolve models for customer retention, loyalty and recurrence. Strengthen and s
Slide 23: Sustainability Strategy unveiled in 2021
We unveiled in 2021 our Sustainability Strategy, initiated our path towards the goals set for 2030 and had our shares included into ISE. Announcement in May/21 of our Sustainability Strategy Access to find out more Walking Together movement 8 Objectives 35 Goals RADL3 was included into ISE, B3’s ind