d1000 (DMVF3) makes a loss and earns BRL 200,000 in Q1; Ebitda up 190.9%

A d1000 (DMVF3), owner of pharmacies such as Drogasmil, Farmalife, Drogarias Tamoio and Drogaria Rosário, partially recovered a loss of BRL 6.2 million in the first quarter of 2022 (1Q22) and posted a profit of BRL 200,000 in the first quarter of this year, the reported pharmacy network. The company attributes the result to continued revenue improvement combined with operational leverage.

Earnings before interest, taxes, depreciation and amortization (Ebitda) for Q1 23 was R$8.8 million, an increase of 190.9% compared to Q1 22.

Ebitda margin reached 2.1% between January and March, up 1.2 percentage points (pp). compared to the margin recorded in 1Q22.

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Gross sales for the first quarter of this year were BRL 425.1 million, a 23.1% growth compared to the same period in 2022.

Gross profit reached R$126.4 million in Q1 2023, an increase of 22.6% compared to the same period in 2022. Gross margin was 29.7% in Q1 2023, down 0.2% 22 percentage points from Q1 margin.

Average sales per store developed for the 4th consecutive quarter, reaching R$23 643.4 thousand in Q1, representing a growth of 19.3% compared to Q122.

“This result is a consequence of accelerated maturation of the new stores opened in 2021 and 2022, optimization of product mix and inventory, and operational improvements made in recent years that have brought a greater flow of customers to the stores, combined with the Increase in the average ticket price,” the company stressed.

Selling expenses for Q1 23 totaled R$92.9 million, an increase of 13.5% compared to Q1 22, representing a dilution of 1.8 percentage points compared to Q1 22.

“In addition to adjustments for inflation during the period, this quarter had the impact of extraordinary expenses resulting from the completion of the Collective Bargaining Agreement incurred in 2022 throughout Q222. We also had the impact of pre-operational costs associated with the expansion plan that did not materialize until the second half of 2022. Such events resulted in an impact of BRL 2.2 million, and yet the company achieved another important dilution of expenses,” d1000 noted in its earnings release.

For the first quarter of 2023, general and administrative expenses totaled BRL 19.1 million, an increase of 20% over the same period in 2022 and a dilution of 0.1 percentage point over the same period last year.

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