Saraiva Increases Revenues by 8% in 9M13 with Growth in Same Stores, New Stores and Online
SAO PAULO, Nov. 13, 2013 /PRNewswire/ -- Saraiva S.A.(Bovespa:SLED3 and SLED4), one of the major publishers in Brazil and one of the largest content retailers in culture and education, with stand-out performance in Brazil´s e-commerce segment, reported today financial results for the third quarter and 9 month period ended September 30, 2013.
OPERATIONAL HIGHLIGHTS– 9M13
- Hiring of Michel Jacques Levy as CEO of the Saraiva Group.
- Creation of the Investor Relations Area and hiring of Luciana Doria Wilson.
- Signing of the contract with the Federal Government under the National Textbooks Program for the 2014 academic year (PNLD/2014), in the amount of R$173.0 million, with the digital material particularly well received, totaling R$16 million. This result represents an increase of 32% in the annual comparison and growth of 24% versus the comparable program, PNLD/2011, due to the three-year cycle in the government's purchases of textbooks. It is worth noting the seasonality in the Publishing business, with particularly high concentrations in the first and fourth quarters.
- The Retail business opened an additional 6 stores in 2103, with 2 in 3Q13, including the first airport store. The retail business ended 9M13 with total sales area of 60,665 m2, 11% more than 9M12.
- Saraiva is in the process of installing its first logistics center in the city of Cajamar
- The Company promoted the restructuring of the Publishing Business, as part of the growth strategy for the publishing business.
- Saraiva received the "EpocaReclameAquiAward – The Best Consumer Companies of 2013" in the category Electronic Commerce, and recognition as a super-champion company in the general ranking, which considers the best companies in 62 categories.
- Saraiva registered as an establishment able to accept the Culture-Voucher as a form of payment. The Culture-Voucher is a newly created federal program to encourage spending in the areas of culture, leisure and entertainment.
EARNINGS HIGHLIGHTS– 9M13
- Consolidated net revenues reached R$1.4 billion, an increase of 8% in the yearly comparison.
- Net revenue in the Retail business reached R$1.2 billion, an increase of 12% in the yearly comparison, due to increased sales volume in the retail division, driven by both an increase in the number of stores and solid sales performance in the e-Commerce business.Same-store sales presented growth of 5.4% compared to the same period last year.
- Net revenue in the Publishing business totaled R$ 244 million, down 12% in the yearly comparison, given the delay, on the part of the Federal Government, in contracting the PNLD for 2014. The Publisher's sales to the private market grew by 3% in the yearly comparison, and the company expects to register sales volume in 2013 that is higher than 2012, due to strong performance obtained in the PNLD 2014, which will be billed in 4Q13.
- Saraiva's e-commerce revenues again registered an increase, achieving 14.4% growth in sales y-o-y.
- Consolidated gross profit reached R$595 million in 9M13, 3% higher than 9M12, reflecting less contribution from the Publishing business unit. Gross margin decreased by 1.8 basis points, to 42.3% from 44.1% in 9M12, reflecting less contribution from the Publishing business unit.
- Consolidated EBITDA was R$66 million in 9M13, compared to R$105 million in 9M12. The decrease is due to:(I) non-comparability of the PNLD 2013 (billed in 3Q12 and 4Q12) with 2014 (to be billed in 4Q13), and (ii) non-recurring expenses of approximately R$ 10.1 million related to the organizational restructuring, prepayment of expenses, operational advisory and M&A transactions.
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Saraiva is a leading publisher and distributor of content and services related to education, culture and entertainment, and as such plays an important role in many aspects of its customers' lives. The Company operates its retail business through a multichannel concept, offering a wide range of products and services. Saraiva operates its online business through Saraiva.com, which is fully integrated with its chain of storefronts, to ensure a nationwide footprint. The Company publishes and distributes primarily educational content in print and digital formats and through its Learning Systems, covering from pre-school to university, and also publishes technical and professional content.
SOURCE Saraiva S.A.