Less profit in 3Q RD, with deceleration of same store sales and expenses

SAO PAULO-the network of pharmacies RD had net profit of 128.8 million dollars in the third quarter, a result 5,6% less than the established a year before, with slowing growth and same store sales increase of expenditure. Operational performance measured by earnings before interest, taxes, depreciation and amortization (Ebitda) adjusted was practically stable in the same comparison, the 295,250,000 reais, while the Ebitda margin retreated to 7,5%, from 8,3% a year behind. According to the, the stores opened this year and the units in process of opening generated a reduction of 11.6 million reais in Ebitda for the third quarter. The RD has opened 64 new shops and closed other four between July and September, ending the quarter with a total of 1,768 units in operation. The same stores, sales rose 0,8% in the period, marking a slowdown in relation to the advancement of 7,6% observed a year earlier and 2,5% in the second quarter. Considering only the mature stores, there was no retraction of 3,2% in the third quarter, compared with an increase of 3,5% in the same range of 2017. Still, consolidated gross revenues grew year over year 10,2%, to 3.94 billion reais. On the other hand, the selling expenses increased by 14,5% over the third quarter of 2017, for 735.4 million reais, and General and administrative 5,6% on the same basis, rose to 86.1 million. Dr ended September with net debt of 681.5 million reais, a 81% higher than the amount recorded a year earlier. With that, the leverage ratio measured by net debt over Ebitda rose to 0.6 0.3 time again in the third quarter of last year. In 2018, the actions of the RD low almost 29% accumulate.