Wholesale and retail of pharmacies decelerate

Companies of the wholesale of medicines and pharmacies recorded weak performances in the first months of the year and the reduction in consumer demand has weight in this result. It is more a market connected to the consumer sector that is affected by the loss of vigor of the economy, by the "calendar effect" and also by the characteristics of the own business – which at the beginning of the year registers less breathtaking growth.
The Brazil Pharma, largest network of drugstores in the country in number of points presented numbers worse than the company anticipated. Profarma, traditional industry Distributor and owner of drugstore chains, already expecting a Q1 results shy-as historically occurs-and was affected by the bad result of sales to the public sector.
BR Pharma common shares closed the day with low of 5.80% and quoted the $ 12. The loss was greater in Profarma, 11.89% drop in the price of paper, which closed the day quoted at r $ 18,68. In the month, Profarma lost 15% of its market value and BR Pharma, about 6%.
"The first quarter was the most challenging for the company since its IPO [initial public offering of shares]", said André Sá, President of BR Pharma, during conference call with analysts yesterday. The company made its IPO in June 2011. "We had a weaker result than expected and now we are in line [with]," said Renato Lobo, Director of investor relations for the company. Reduction in the flow of customers in stores, which affected volume sold, added to "calendar effect"-more holidays from January to March towards 2012-have they had an impact on the final result.
A smaller number of working days in the month affects retail and wholesale results because sales in pharmacies are concentrated in the period from Monday to Friday. "Working day for us is worth more than the weekend. If there are holidays, the week is less ". On demand, Samuel said that sales did not come from a stream more customers "Had less consumers in stores".
Second BR Pharma results balance, net revenue climbed 62.8%, to $ 749 million, a number considered positive by analysts, but the final line of balance shrank. She sold, but not profited. The injury of BR Pharma rose from R $ 6 million from January to March 2012 to $ 7 million in the first quarter of 2013. The result was affected mainly by the lower gross margin and the highest level of financial costs associated with the debt contracted with acquisitions of 2012.
On the gross margin, the fall was a reflection, in part, of a decision taken by the company-the rate fell from 30.3% from January to March 2012 to 28.6%. BR Pharma has chosen to be more aggressive on price, promotions and transfers of adjustments in the area holding hygiene and beauty with the intention to avoid losing sales. "We had to position ourselves and we take that decision. But I don't see major pressures on the Bank in the long term, "said Samuel. In the report of the quarter the company writes that operates on a resilient sector "and remains optimistic about the long-term fundamentals" of the company.
Market conditions were also cited by the command of Profarma distribuidora de medicines and owner of 140 shops in Rio de Janeiro. "For the pharmaceutical market, the first quarter of the year, seasonally, presents lower performance in respect of other periods. In this scenario, Profarma kept ongoing company focus: the search for balance between sustainable growth, operating margin and cash cycle ", wrote in a report.
According to the company reports results in the material, "the domestic setting is still dominated by the uncertainties of the macroeconomic conditions that restricted the growth of the country due to a more conservative posture and with risk aversion". In yesterday's results conference call, Profarma not detailed the effects of the slowdown of the economy in the first quarter, but points out that "April has been better," said Max Fischer, Director of investor relations. "Now we can see a rebound early in the second quarter."
The company found 27.2% drop in net income, reflecting, in part, to lower distribution of products to the public sector. Net revenues rose 5.9%.