DIMED S.A. DISTRIBUIDORA DE MEDICAMENTOS 2022/4Q22 Earnings Release
Results Call
March 24, 2023 - Friday
11:00 a.m. (Brasilia time) / 10:00 a.m. (EDT) The call shall be held in Portuguese with simultaneous interpreting to English.
Link:Click here
Eldorado do Sul, RS, March 23, 2023
Dimed S.A. Distribuidora de Medicamentos (B3 S.A. - BRASIL, BOLSA, BALCÃO: PNVL3), one of the main retailers and distributors of pharmaceutical products in the Country, announces the results for the 4th quarter of 2022 (4Q22). The Company's financial statements are prepared in Brazilian reais (BRL), pursuant to the Brazilian corporate law and international financial reporting standards (IFRS). The 4Q22 result comparisons are based on the 4Q21, unless stated otherwise. For comparative purposes, figures in this report are indicated pursuant to IAS 17/CPC 06. Mentioned financial values refer to amounts in Brazilian reais (BRL).
Investor Relations
Antônio Carlos Tocchetto Napp | Ismael Rohrig | Pedro Bernardes | Pedro Gazzana |
Financial and IR Officer | IR Coordinator | IR Assistant | IR Trainee |
Phone: 51 3481-9588 /Email:relinvest@grupopanvel.com.br/ Website:https://ri.grupopanvel.com.br/
Disclaimer: Statements contained in this document related to business perspectives, projections on operating and financial results, and those related to growth perspectives of the Panvel Group are merely projections and, as such, are based exclusively on the Management's expectations about the future of the business. Those expectations depend materially on market conditions, legislation, the performance of the Brazilian economy, the segment, and international markets, and, therefore, they are subject to change without notice.
1
Results
2022
Group's Gross Revenue
BRL 4,280M (+23.5%)
Group's Gross Margin
29.0% (+0.5 p.p.)
Adjusted EBITDA
BRL 202.8M (+25.7%)
4.7% Margin
Retail Gross Revenue
BRL 3,908M (+23.1%)
Retail Gross Margin
30.4% (+0.4 p.p.)
Digital (% of Retail sales)
15.8%
(22.8% vs 2021)
4Q22 | |||||||||||||||||||||
Group's Gross Revenue | Retail Gross Revenue | ||||||||||||||||||||
BRL 1,165M (+21.4%) | BRL 1,070M (+21.1%) | ||||||||||||||||||||
Group's Gross Margin | Retail Gross Margin | ||||||||||||||||||||
28.9% (+0.5 p.p.) | 30.0% (+0.3 p.p.) | ||||||||||||||||||||
Adjusted EBITDA | Customer Base | ||||||||||||||||||||
BRL 58.6M (+19.4%) | 15.8 Million Customers | ||||||||||||||||||||
5.0% Margin | 26.4% (vs 2021) | ||||||||||||||||||||
Description | 4Q21 | 1Q22 | 2Q22 | 3Q22 | 4Q22 | 2021 | 2022 | ||||||||||||||
No. of Stores | 517 | 527 | 538 | 548 | |||||||||||||||||
556 | 517 | 556 | |||||||||||||||||||
No. of employees | 8,646 | 8,550 | 9,026 | 9,414 | 9,300 | 8,646 | 9,300 | ||||||||||||||
In thousands of | |||||||||||||||||||||
TT Gross Revenue | 959,918 | 969,334 | 1,057,661 | 1,087,775 | |||||||||||||||||
1,165,011 | 3,466,681 | 4,279,781 | |||||||||||||||||||
TT Gross Margin | 275,474 | ||||||||||||||||||||
272,976 | 315,342 | 315,143 | 336,580 | 988,599 | 1,242,539 | ||||||||||||||||
% of Gross Revenue | 28.4% | 28.4% | 29.8% | 29.0% | |||||||||||||||||
28.9% | 28.5% | 29.0% | |||||||||||||||||||
Gross Retail Revenue | 877,411 | ||||||||||||||||||||
883,890 | 965,395 | 995,322 | 1,070,306 | 3,174,359 | 3,908,434 | ||||||||||||||||
Gross Retail Margin | 262,214 | 261,504 | 300,664 | 303,502 | |||||||||||||||||
321,089 | 950,994 | 1,186,759 | |||||||||||||||||||
% of Gross Retail Revenue | 29.8% | ||||||||||||||||||||
29.7% | 31.1% | 30.5% | 30.0% | 30.0% | 30.4% | ||||||||||||||||
Adjusted EBITDA TT | 49,041 | 39,664 | 56,098 | 48,458 | |||||||||||||||||
58,647 | 161,265 | 202,757 | |||||||||||||||||||
% of Gross Revenue | 5.1% | 4.1% | 5.3% | 4.5% | 5.0% | 4.6% | 4.7% | ||||||||||||||
Adjusted Net Income TT | 28,126 | 25,625 | 27,986 | 23,610 | |||||||||||||||||
24,294 | 92,343 | 101,435 | |||||||||||||||||||
% of Gross Revenue | 2.6% | ||||||||||||||||||||
2.9% | 2.6% | 2.2% | 2.1% | 2.7% | 2.4% | ||||||||||||||||
0 |
Results of the 4Q22
A message from the management
The year 2022 was a period of intensive work by the Company, which resulted in a number of achievements and set new records for the Group.
Grupo Panvel makes record investment in the period, totaling more than R$ 313 million in the last two years.
We close another full year of a new growth cycle, which started after our follow-on in July 2020. This was the period with the highest volume of investmentsin the Company's history, totaling BRL 180.7 million in 2022 alone, totaling BRL 313.2 million in the last two years. These investments, focused on store operations, logistics and technology, were directly responsible for delivering key pillars of our long-term strategy:
- Opening 60 new stores in the year and 120 new stores in the last two years: For the second consecutive year, we maintained a record number of Panvel store openings. There were 60 more stores, representing a growth of around 12% over the existing base. This figure reinforces the consistency achieved by our expansion process. Furthermore, the maturation of these stores continues at an accelerated pace, as can be seen from the growth in sales and margin gains;
- Logistics:at the end of 2022, we finalized another investment in the expansion of the Eldorado do Sul/RS Distribution Center. This investment doubles our storage capacity in the region and, together with the investment made in the São José dos Pinhais DC in previous years, will give us strength and scale gains to support the expansion project until 2025.
- Technology:We continue to invest in our digital capabilities, increasingly improving the experience of our remote sales channels (focus on customer experience and the quality of our last mile delivery, in addition to the launch of our Marketplaceand product long tail initiatives). In addition, we continue to make rapid progress in bringing our customers online. That is why Panvel continues to be the pharmaceutical retail benchmark when it comes to Digital, maintaining the highest sales
penetration of online channels in the industry and the quickest last mile delivery in Brazil.
The achievements of 2022 are not only about investments made. Throughout the year, we delivered consistent and growing results in all
our strategic pillars. The Group's Gross Revenue exceeded the four billion reais mark, having reached BRL
4.3 billion for the year, a record growth of 23.5% in the period. This growth was driven by Panvel, whose sales grew 23.1% in the period (21.1% in 4Q22), accompanied by an excellent performance of SSS (19.7% in the year) and MSSS (12.8% in the year). Robust sales growth had two important consequences:
- Consecutive gains in market share in all states in the South Region: In 4Q22, we reached a market share of 12.2% in the South Region, an increase of 0.4 pp over the same period for 2021.
- Achieving the highest level of average sales per store in our history:BRL 642 thousand/month.
This excellent sales performance was constructed on several fronts. At Panvel Clinic, even with reduced demand related to Covid-19 (mainly tests), we reached a 2.3% share of services over sales in 2022, and once again the Company consolidated itself as the leader in the South region in the provision of services in pharmacies and retail pharmacy benchmark in terms of participation. We ended the year with 336 stores with Clinic and 86 Vaccination rooms;
On Digital, as already mentioned, Panvel maintained a high share of the chain's total sales (15.8% in the year) and increasingly improved its last mile delivery capacity. Throughout 2022, more than 2.9 million deliveries were made, with more than 40% of this volume being delivered within 60 minutes, reinforcing Panvel's last mile delivery as the fastest in pharmaceutical retail. Thus, with numerous projects focused on user experience and operational efficiency, Panvel continues to be the retail pharmacy benchmark when it comes to e-commerce;
Results of the 4Q22
And, of course, we have to mention the strong growth in the customer base in 2022. We ended the fiscal year with 15.8 million customers in our base, which represents a 26.4% growth in the year, which, together with our CRMtools, enabled us to bring a higher level of loyalty and recurrence, through initiatives such as the creation of PBM Panvel and other projects focused on
monitoring customers who use medication for chronic diseases and continuous use;
All sales growth was accompanied by the expansion of margins. The good investment in inventory before the annual readjustment of medicine prices, combined with product mix management, an efficient commercial policy, and the implementation of strategic projects focused on medicines, allowed Panvel Retail to reach a Gross Margin of 30.4% in the year,a growth of 0.4 p.p. in relation to the previous year. This performance in the Gross Margin, jointly with the performance in sales, offset the effects of the inflation in our selling expenses, especially in Personnel and Rent, remaining only the natural pressure on expenses related to the pace of expansion.
Within this context of pressure on short-term expenses due to the pace of expansion, it is very important to highlight that the Adjusted
EBITDA Margin grew by 25.7% in the year, reaching the level of BRL
202.8 million, equivalent to 4.7 % on Gross Revenue (5.0% in 4Q22). Adjusted Net Income reached BRL 101.4 million, representing 2.1% of Gross Revenue, with a growth of 9.8%.
EBITDA grows 25.7% in 2022, reaching R$ 202,8
Million, even with accelerated expansion.
Panvel maintains low leverage, staying below 0.4x EBITDA.
The quality of cash management is also worth mentioning. We grow sales in an accelerated way, we open stores, we invest in logistics and technology in a sustainable way. As a result, we closed 2022 with low debt and leverage, less than 0.4 x EBITDA. This comfortable cash situation gives us the breath to continue growing even with a more challenging economic scenario.
It should be reminded that such growth in sales was also followed by an improvement in our customer service indicators, whose main KPI is the NPS(Net Promoter Score). This indicator remained at a record level of 80 points in 2022, one of the highest in the industry. This is the best possible translation of our purpose of "Providing Health and Well-being", with the customer always at the core of our decisions.
In addition to all these robust and consistent numbers, throughout 2022 we had the chance to evolve considerably in the ESG journey. After the launch of the Todos Bem platform in 2021, important steps were taken in this pillar, such as conducting our first Greenhouse Gas Inventory, starting to prepare the Company's first Sustainability Report (to be published in 2023), restructuring the Troco Amigo program, among other initiatives. We closed the year 2022 with significant advances in the goals set within the program, which are available at https://www.grupopanvel.com.br/todosbem/.
All these important deliveries reinforce our consistency and confidence for the coming years. We will continue investing and innovating in our business and will reap the rewards of past projects and investments. We are fully aware that, to achieve our long-term goals, we still have a lot of work ahead of us, but we continue to deliver on all the commitments made in our follow on. Finally, it is worth pointing out that all of this was only possible and will continue to be built through our people. With this, we would like to thank all the stakeholders that are part of our Group and that contribute to making each quarter an overachieving quarter.
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Dimed SA Distribuidora de Medicamentos published this content on 23 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 March 2023 23:09:05 UTC.
