Earnings Release 1Q16

Earnings Release 1Q16
Monterrey, Mexico, April 28, 2016. – Grupo Famsa, S.A.B. de C.V. (BMV: GFAMSA), a leading
Mexican commercial conglomerate in the retail, consumer credit and savings sectors,
announced today its earnings results for the first quarter 2016. The preliminary, unaudited
financial statements presented in this report have been prepared in accordance with IFRS and
the interpretations in effect as of March 31, 2016. Figures are expressed in millions of current,
nominal Mexican pesos, unless otherwise stated.
Financial Highlights
Grupo Famsa
Famsa Mexico
Banco Famsa
Famsa USA
 Grupo Famsa posted a 12.0% YoY increase in its Consolidated Net Sales in
the first quarter 2016
 Consolidated EBITDA remained almost unchanged vs. 1Q15, amounting to
Ps.419 million
 Famsa Mexico’s Total Sales growth trend continued in 1Q16, reaching a
10.9% rise YoY
 Electronics and Motorcycles’ contribution stands out in the first quarter´s
sales mix
 Expansion in the origination of payroll credit, anticipating a higher
participation of clients in the formal economy
 Banco Famsa’s Non-performing Loans (NPL) Ratio was 8.7% as of March 31,
2016, 460 bps. below than that recorded in 1Q15 (13.3%)
 Bank Deposits grew 20.1% YoY, totaling Ps.18,611 million as of the close of
1Q16
 Famsa USA’s Total Sales in MXP increased by 18.9% YoY in 1Q16
 EBITDA in MXP rose from Ps.30 million in 1Q15 to Ps.44 million in 1Q16
Consolidated Financial Results
Sales
Cost of Sales
Gross Profit
Operating Expenses
Other income, net
Operating Profit
EBITDA
Net Income
Gross Margin
EBITDA Margin
Net Margin
Paloma E. Arellano Bujanda
Investot Relations
[email protected]
Tel. +52 (81) 8389 – 3400 ext.1419
www.grupofamsa.com
1Q16
3,953
(2,082)
1,871
(1,606)
26
291
419
93
47.3%
10.6%
2.4%
1Q15
3,530
(1,816)
1,714
(1,437)
24
300
421
93
48.6%
11.9%
2.6%
∆%
12.0%
14.6%
9.2%
11.7%
7.9%
(3.2%)
(0.5%)
(0.2%)
-
Page 1 of 13
Earnings Release 1Q16
COMMENTS FROM THE CHIEF EXECUTIVE OFFICER
Consolidated Net Sales highlighted this first quarter of 2016, by posting a remarkable 12.0% growth,
following a sound commercial strategy oriented to stimulate the demand of durable goods through
attractive promotions.
In Mexico, the performance recorded, particularly in Electronics and Motorcycles, underpinned the
10.9% YoY growth in Net Sales during the quarter. Meanwhile, in USA, Net Sales decreased by 3.9% YoY,
due to fierce competition. However, USD appreciation became a positive driver behind this quarter’s
consolidated results, recording a 18.9% YoY increase in sales.
Regarding our banking operations, we seek to excel the benefits from our brand awareness and
commercial positioning towards an extensive participation in payroll credit origination. As a result, it has
translated into an additional 50% of our monthly average credit origination, surpassing Ps.200 million
for these kind of credits, to Ps.300 million. This initiative derives from our initial strategy of focusing on
those markets where we have a wider geographic penetration, and which have been enhanced with a
higher number of associates.
On the other hand, the continuous improvement in the credit-granting procedures and the
enhancement of collection activities through a larger deployment of collectors in markets of higher
delinquency rates, have strengthened the NPL rate of Banco Famsa. This indicator has decreased by
890 bps. from 17.6% in June 2014 to 8.7% this quarter, and we expect to reach an 8.0% rate at year-end
driven by a greater proportion of clients in the formal economy in our credit portfolio (from the current
30% to an estimated 50% at year-end) following a higher balance of payroll credits.
In Famsa USA, we achieved a Gross Profit Margin expansion, derived from a higher participation of
Personal Loans in the sales mix. This enhanced the EBITDA, in MXP, improving from Ps.30 million in
1Q15 to Ps.44 million in 1Q16.
The Consolidated Operating Cash Flow (EBITDA) recorded during the quarter was flat vs. 1Q15, which
reached Ps.419 million. Famsa Mexico’s EBITDA decreased by 3.3% YoY in 1Q16 as a result of both an
intensive promotional campaign launched on specific regions of our commercial footprint and a lower
participation of the Furniture category in the sales mix. Additionally, the operating expenses in Mexico
reflected a larger headcount, and a larger number of retail stores.
To conclude, this first quarter has been a period in which we have implemented several strategic
initiatives to leverage our operational platform and market positioning. We expect to see these results
reflected in the generation of Operational Cash Flow in the following quarters.
Humberto Garza Valdez
Chief Executive Officer
Paloma E. Arellano Bujanda
Investot Relations
[email protected]
Tel. +52 (81) 8389 – 3400 ext.1419
www.grupofamsa.com
Page 2 of 13
Earnings Release 1Q16
Business Segments
Famsa Mexico
During 1Q16, our stores recorded higher productivity, through the continuous enhancement of
commercial strategies, resulting in a 10.9% and 10.0% increase of total consolidated sales and same
store sales (SSS), respectively.
An important part of this growth was a result of the implementation of marketing campaigns and
discount programs, such as “Gran venta insólita de liquidación” and “Crédito de Verdad" that allowed us
to offer attractive promotions to our clients, thus stimulating demand of durable goods, but pressuring
margins at the same time. During the 1Q16, Electronics and Motorcycles delivered the highest sales
performance, growing by 29.3% and 28.6%, respectively.
Banco Famsa
Seeking to leverage the brand awareness and commercial positioning of Grupo Famsa, we have
widened Banco Famsa’s outreach in the origination of payroll loans. This initiative will enhance the
quality of our credit portfolio, aiming to achieve an 8.0% NPL ratio by year-end 2016 (@ December
2015: 9.8%).
Banco Famsa: Non-Performing Loan Ratio (NPL)
18.0%
16.0%
16.4%
17.6%
16.5%
14.8%
14.0%
15.1%
16.2%
15.7%
14.2%
13.3%
11.9%
12.0%
10.4%
10.0%
9.8%
8.7%
8.0%
Mar´13
Jun´13
Sep´13
Dec´13
Mar'14
Jun'14
Sep'14
Dec'14
Mar'15
Jun'15
Sept'15
Dec'15
Mar´16
Source: Banco Famsa.
During 1Q16, we performed significant efforts to widen our distribution network for payroll credits,
assembling a team of approximately 1,300 people, whose members generate a commission expense
anytime they originate a new loan.
As of March 31, 2016, Bank Deposits, distributed over 1.2 million accounts, totaled Ps.18,611 million,
20.1% above those as of 1Q15. In 1Q16, Bank Deposits represented 66.7% of Grupo Famsa’s funding
sources. Additionally, Banco Famsa’s recorded a 4.2% average cost of funding in 1Q16.
Paloma E. Arellano Bujanda
Investot Relations
[email protected]
Tel. +52 (81) 8389 – 3400 ext.1419
www.grupofamsa.com
Page 3 of 13
Earnings Release 1Q16
Interest on Bank Deposits totaled Ps.190 million pesos in 1Q16, up 13.7% YoY.
Banco Famsa: Bank Deposits
4.4%
4.4%
15,491
15,707
10,787
18,611
13,072
12,542
4.5%
4.4%
4.4%
4.3%
4.3%
4.2%
4.2%
4.1%
4.1%
4.0%
4.0%
16,501
11,178
10,901
18,359
4.2%
4.2%
4.1%
2,998
3,298
3,572
3,456
3,937
1,592
1,622
1,751
1,831
2,132
1Q15
2Q15
3Q15
4Q15
1Q16
Demand Deposits
Time deposits with optional availability
Time Deposits
Avg. Cost of Funding
Source: Banco Famsa
Finally, Banco Famsa continued to implement its credit portfolio diversification strategy, growing the
base of productive loans to Ps.4,198 million in 1Q16, 27.7% higher than that of the previous year. The
NPL of its commercial portfolio remained stable at 2.5% as of March 31, 2016.
Famsa USA
During the first quarter of 2016, Famsa USA posted a 3.9% YoY decrease in Same Store Sales (SSS) in
USD, as a result of higher competition in the American retail segment. Net Sales for 1Q16 rose by 18.9%
in MXP, but fell 3.9% in USD YoY.
Excluding the foreign exchange effect, the origination of Personal Loans continued to show strong
dynamics, growing by 48.2% YoY, in 1Q16, thus contributing to the Gross Profit Margin expansion of
Famsa USA, which coupled with the USD appreciation supported a 45.8% EBITDA growth (in MXP)
Paloma E. Arellano Bujanda
Investot Relations
[email protected]
Tel. +52 (81) 8389 – 3400 ext.1419
www.grupofamsa.com
Page 4 of 13
Earnings Release 1Q16
Business Units
The following breakdown of our network of stores and bank branches is presented to clearly illustrate
Grupo Famsa´s business unit results.
Retail Stores &
Banking
Total
Stores
Famsa México
Famsa USA Texas
PL USA Branches
Banking Branches¹
To be Conv. Bches.²
Business Units
1Q16
920
431
377
26
28
401
88
Floor Space (m²)
Openings Closures 4Q15 1Q15
3
1
1
0
0
2
0
2
1
1
0
0
1
0
919
431
377
26
28
400
88
917
413
371
26
16
402
102
∆% YoY
1Q16
1Q15
0.3%
4.4%
1.6%
0.0%
75.0%
(0.2%)
(13.7%)
566,686
519,613
449,029
66,434
4,150
40,941
6,133
556,580
508,748
439,964
66,434
2,350
40,692
7,140
∆%
YoY
1.8%
2.1%
2.1%
0.0%
76.6%
0.6%
(14.1%)
(1) Most banking branches are located within Famsa Mexico stores
(2) Acquisition of branches from Monte de México, S.A. de C.V. Closures refer to acquired branches converted to banking branches.
Consolidated Financial Statements
Sales
Segment
Grupo Famsa¹
Famsa México²
Famsa USA
Others
Intercompany
1Q16
3,953
3,364
562
231
(204)
Net Sales
1Q15
3,530
3,032
473
202
(177)
∆%
12.0%
10.9%
18.8%
14.4%
(15.1)%
1Q16
10.7%
10.0%
(3.9%)
-
Same Store Sales (SSS)
1Q15
6.3%
7.5%
0.4%
-
∆%
-
(1) Includes sales of non-retail businesses
(2) Includes Banco Famsa
1Q16 Consolidated Net Sales totaled Ps.3,953 million, rising at a double-digit rate of 12.0% YoY, mostly
due to the continuous improvement of operations in Mexico, driven by advertising campaigns designed
to stimulate the demand for durable goods.
During the quarter, Famsa Mexico posted a 10.9% YoY growth in Total Sales. Additionally, Famsa USA
recorded an 18.9% YoY growth in 1Q16, as a result of higher origination of personal loans and the
depreciation of the MXP vs. the USD.
Similarly, Grupo Famsa’s Consolidated Same Store Sales (SSS) grew by 10.7% YoY, boosted by the 10.0%
YoY growth of Famsa Mexico’s SSS for 1Q16. Famsa USA’s SSS, excluding the foreign exchange effect,
decreased by 3.9% YoY in 1Q16.
Paloma E. Arellano Bujanda
Investot Relations
[email protected]
Tel. +52 (81) 8389 – 3400 ext.1419
www.grupofamsa.com
Page 5 of 13
Earnings Release 1Q16
Consolidated Sales Mix
$3,530
$3,953
Computers
13.3%
3.3%
5.5%
12.3%
9.6%
12.6%
17.1%
16.5%
21.2%
20.3%
Loans
17.4%
19.9%
Other
1Q15
1Q16
4.6%
4.8%
11.4%
10.2%
Motorcycles
Electronics
Mobile Phones
Appliances
Furniture
Cost of Sales
The 1Q16 Consolidated Cost of Sales rose by 14.6% YoY, reaching Ps.2,082 million. The cost of sales of
our operations in Mexico was pressured by higher promotions and a lower participation of Furniture in
the sales mix, which was reflected in the cost to sales proportion shifting from 52.0% in 1Q15 to 54.1%
in 1Q16. In this context, we recorded an increase of Ps.37 million in the credit allowance, driven by the
growth in the credit portfolio, representing an increase of 14.7 YoY. Finally, the interest on bank
deposits during the period increased by 13.7% YoY, driven by the rise in the balance of deposits.
Gross Profit
Consolidated Gross Profit for 1Q16 grew by 9.2% YoY, to Ps.1,871 million. Meanwhile the Consolidated
Gross Margin dropped by 130 bps., from 48.6% in 1Q15 to 47.3% in 1Q16. This reduction is attributable
to a higher proportion of costs to sales during the period, mainly in Mexico.
Operating Expenses
Consolidated Operating Expenses, comprising selling and administrative expenses, grew 11.7% YoY in
1Q16, reaching Ps.1,606 million. This increase reflects a larger number of stores in Mexico, higher
credit origination expense, and greater headcount that increased in 11.4% YoY. The additional
headcount was oriented, on the one hand, to ground the credit origination structure, with
approximately 1,300 new employees, and on the other hand, to increase the team of collectors,
approximately by 450 employees, to be deployed in the regions with higher delay in payments. The
aforementioned initiatives are geared towards the enhancement of the credit mix and lower
delinquency that we anticipate to be positively reflected during the following quarters.
Paloma E. Arellano Bujanda
Investot Relations
[email protected]
Tel. +52 (81) 8389 – 3400 ext.1419
www.grupofamsa.com
Page 6 of 13
Earnings Release 1Q16
EBITDA
Segment
EBITDA
1Q16
Grupo Famsa¹
1Q15
% EBITDA
∆%
1Q16
1Q15
∆%
419
421
(0.5%)
10.6%
11.9%
-
379
392
(3.3%)
11.3%
12.9%
-
Famsa USA
44
30
46.7%
7.9%
6.4%
-
Other
(4)
(1)
-
-
-
-
0
0
-
-
-
-
Famsa México²
Intercompany
(1) Includes EBITDA from non-retail business
(2) Includes Banco Famsa
Consolidated EBITDA for 1Q16 decreased by 0.5% YoY, reaching Ps.419 million. The Consolidated
EBITDA margin decreased by 130 bps., from 11.9% in 1Q15 to 10.6% in 1Q16, mainly as a result of a
higher proportion of costs to sales, as well as a higher payroll reflected in the operating expenses.
Financial Expenses, Net
1Q16
Interest income
Interest expenses
Exchange gain & losses, net
Total
1Q15
∆%
2
0
0.0%
216
168
28.6%
46
104
(55.3%)
260
271
(4.3%)
Consolidated Financial Expenses for the first quarter 2016 fell by 4.3% YoY, reaching Ps.260 million.
Grupo Famsa recognized a foreign exchange (FX) loss of Ps.46 million, compared to an FX loss of Ps.104
million in 1Q15.
Interest Expense for 1Q16 grew by 28.6%, reaching Ps.216 million, compared to Ps.168 million in 1Q15,
as a result of the depreciation of the MXP vs. USD and the rise of the Mexican interest rates in February.
Net Income
Consolidated Net Income for 1Q16, corresponding to majority interest, recorded a Ps.93 million profit,
a decrease of 0.2% vs. 1Q15.
Paloma E. Arellano Bujanda
Investot Relations
[email protected]
Tel. +52 (81) 8389 – 3400 ext.1419
www.grupofamsa.com
Page 7 of 13
Earnings Release 1Q16
Financial Position Summary
Representative Items
Trade Receivables
Mexico Consumer
Mexico Commercial
USA Consumer
Inventory
1Q16
28,810
21,898
4,230
2,682
2,730
1Q15
24,175
18,414
3,492
2,270
2,176
∆%
19.2%
18.9%
21.1%
18.2%
25.5%
Trade Receivables
As of March 31, 2016, the consolidated balance of Trades Receivables, net of estimates for NonPerforming Loans, was Ps.28,810 million, 19.2% above that of 1Q15. The most important change was
recorded in the Commercial Portfolio in Mexico, which grew by 21.1% vs. 1Q15, reaching Ps.4,230
million. This was a result of the increased origination of MiPyME loans, following the designed strategy
to diversify its portfolio.
Consumer Accounts Receivable in Mexico also rose by 18.9% vs. 1Q15, reaching Ps.21,898 million.
Consumer Accounts Receivable in the United States totaled Ps.2,682 million pesos, 18.2% above that of
1Q15, reflecting a stronger dollar.
Debt
Debt & Indebtedness Ratios
1Q16
1Q15
∆%
8,108
6,303
28.6%
9,289
7,960
16.7%
Leverage Ratio (Gross Debt / EBITDA) ¹
3.5
3.4
-
Interest Coverage Ratio 2
2.2
2.2
-
Net Debt
Gross Debt
(1) EBITDA includes Interest on Bank Deposits
(2) Annual figure
Net Debt as of March 31, 2016 totaled Ps.8,108 million pesos, 28.6% above that of 1Q15. This increase
reflects the effects of the devaluation of the MXP vs. USD, and a 40.4% decrease in cash and
equivalents, from Ps.1,657 million in 1Q15 to Ps.1,180 million in 1Q16. The decrease in cash and
equivalents is in turn driven by the increase in the origination of productive and consumer credits.
Similarly, the balance of Gross Debt as of March 31, 2016, excluding Bank Deposits, grew by 16.7% YoY
vs. the same period last year. The devaluation of the MXP vs. USD was the main driver behind this
increase in Gross Debt.
Paloma E. Arellano Bujanda
Investot Relations
[email protected]
Tel. +52 (81) 8389 – 3400 ext.1419
www.grupofamsa.com
Page 8 of 13
Earnings Release 1Q16
Debt Maturity Schedule
Debt Profile
20%
23%
23%
28%
57%
49%
1Q15
Foreign Debt
1Q16
Credit Lines
Debt Certificates
297
4,242
1,959
1,121
6
1,000
2016
2017
91
2018
Debt Certificates
91
2019
91
2020
Credit Lines
91
2021
76
224
2022
Foreign Debt
***************************************
Recent developments
 On March 10, 2016, It took place the successful placement of the long-term securities certificates (Cebures) by
a principal amount of Ps. 1,000 million maturing on August 24, 2017 (under the ticker symbol “GFAMSA 16”
 On February 11, 2016, Standard & Poor’s ratified the ´B´ global rating of Grupo Famsa, and improved its
outlook from “Negative” to “Stable”.
 On January 28, 2016, Grupo Famsa successfully concluded the US$33 million full-payment of its commercial
paper with HSBC Bank PLC, thus reducing the balance of its dollar-denominated debt by 11%. With this
transaction, the balance of the Company’s dollar-denominated Gross Debt as of the date of this report was
US$271 million. As a result Grupo Famsa is reducing its exposure to foreign exchange rate fluctuations.
Forward-looking statements
This report contains, or may be deemed to contain, forward-looking statements. By their
nature, forward-looking statements involve risks and uncertainties because they relate to
events and depend on circumstances that may or may not occur in the future. The future results
of Grupo Famsa, S.A.B. de C.V. and its subsidiaries may differ from the results expressed in, or
implied by, the forward-looking statements set out herein, possibly to a material degree.
Paloma E. Arellano Bujanda
Investot Relations
[email protected]
Tel. +52 (81) 8389 – 3400 ext.1419
www.grupofamsa.com
Page 9 of 13
Earnings Release 1Q16
Analyst coverage
Since Grupo Famsa, S.A.B. de C.V. (“Famsa”) securities are subject to the rules and regulations included in the
Reglamento Interior de la Bolsa Mexicana de Valores (Interior Rules and Regulations of the Mexican Stock Market),
the Company would like to inform that, in compliance with that stated in Disposition 4.033.10 of the said Rules
and Regulations, the following financial institutions provide formal coverage over its stock: BBVA Bancomer, Credit
Suisse, GBM, Interacciones, Santander and Vector. For further information on this coverage, please visit
www.grupofamsa.com.
Technical Notes and Bases for Consolidation and Presentation
Credit Portfolio: Banco Famsa’s business model focuses largely on Consumer Credit, therefore the weight of such
credits in the bank’s portfolio mix differs from that of the standard financial institutions in the Mexican-banking
sector. Consequently, Banco Famsa’s results and figures are not directly comparable with those of the
aforementioned.
Net Financial Expenses: They are primarily comprised of the Financial Expenses corresponding to financing
instruments and foreign exchange rate effect.
Non-performing Loans Ratio (IMOR): The calculation of IMOR in this Quarterly Report includes “Collection Rights”
in Banco Famsa’s total Credit Portfolio. These rights correspond to loans that are discounted via payroll. Due to an
accounting reclassification that came into effect in July 2013, they are excluded from the Credit Portfolio used for
the calculation of the IMOR indicator for the Mexican National Banking and Securities Commission (CNBV).
Percentage rates of change: Percentage rates of change presented in this Report are calculated according to the
consolidated financial statements contained herein.
Paloma E. Arellano Bujanda
Investot Relations
[email protected]
Tel. +52 (81) 8389 – 3400 ext.1419
www.grupofamsa.com
Page 10 of 13
Earnings Release 1Q16
Consolidated Financial Statements
Grupo Famsa, S.A.B. de C.V. and subsidiaries
Consolidated statements of financial position
Thousands of Mexican Pesos
31-Mar-16 31-Dec-15
∆$
Assets
CURRENT ASSETS:
Cash and equivalents
$1,180,452 $2,196,923 ($1,016,471)
Trade receivables, net
27,595,332 26,661,237
934,095
Recoverable taxes
1,006,589
1,044,638
(38,049)
Other accounts receivable
1,765,233
1,484,544
280,689
Inventories
2,729,540
2,455,557
273,983
Total current assets
34,277,146 33,842,899
434,247
NON-CURRENT ASSETS:
Restricted cash
311,785
311,785
0
Trade receivables, net
1,215,455
1,078,128
137,327
2,086,232
2,166,680
Property, leasehold improvements, and furniture & equipment
(80,448)
Goodwill and intangible assets, net
266,137
276,933
(10,796)
Guarantee deposits
124,798
118,558
6,240
Other assets
865,671
692,931
172,740
Deferred income tax
2,596,069
2,515,964
80,105
Total non-current assets
7,466,147
7,160,979
305,168
Total assets
$41,743,293 $41,003,878
$739,415
Liabilities and Stockholders’ equity
CURRENT LIABILITIES:
Demand deposits
Short-term debt
Suppliers
Accounts payable and accrued expenses
Deferred income from guarantee sales
Income tax payable
Total current liabilities
NON-CURRENT LIABILITIES:
Time-deposits
Long-term debt
Deferred income from guarantee sales
Employee benefits
Total non-current liabilities
Total liabilities
Stockholders’ equity:
Capital stock
Additional paid-in capital
Retained earnings
Net income
Reserve for repurchase of shares
Foreign currency translation adjustment
Total stockholders’ equity attributable to shareholders
Non-controlling interest
Total stockholders’ equity
Total liabilities and stockholders’ equity
Paloma E. Arellano Bujanda
Investot Relations
[email protected]
Tel. +52 (81) 8389 – 3400 ext.1419
www.grupofamsa.com
$14,512,612 $14,478,945
3,379,227
4,190,162
1,885,875
1,806,032
712,054
571,036
186,637
206,888
43,672
55,983
20,720,077 21,309,046
4,098,328
5,909,499
117,623
125,174
10,250,624
30,970,701
3,879,884
4,910,533
102,672
122,135
9,015,224
30,324,270
1,703,986
1,704,085
3,811,714
3,812,903
4,618,708
4,460,419
91,524
158,289
233,711
233,130
285,522
285,085
10,745,165 10,653,911
27,427
25,697
10,772,592 10,679,608
$41,743,293 $41,003,878
∆%
(46.3%)
3.5%
(3.6%)
18.9%
11.2%
1.3%
0.0%
12.7%
(3.7%)
(3.9%)
5.3%
24.9%
3.2%
4.3%
1.8%
$33,667
(810,935)
79,843
141,018
(20,251)
(12,311)
(588,969)
0.2%
(19.4%)
4.4%
24.7%
(9.8%)
(22.0%)
(2.8%)
218,444
998,966
14,951
3,039
1,235,400
646,431
5.6%
20.3%
14.6%
2.5%
13.7%
2.1%
(99)
(0.0%)
(1,189)
(0.0%)
158,289
3.5%
(66,765) (42.2%)
581
0.2%
437
0.2%
91,254
0.9%
1,730
6.7%
92,984
0.9%
$739,415
1.8%
Page 11 of 13
Earnings Release 1Q16
Grupo Famsa, S.A.B. de C.V. and subsidiaries
Consolidated statement of income
Thousand of Mexican Pesos
1Q16
Revenues
Cost of sales
Gross profit
Selling & administrative expenses
Other income, net
Operating profit
Interest income
Interest expenses
FX gain & losses, net
Financial expenses, net
3,953,136
1Q15
∆%
3,530,202
12.0%
(2,082,040) (1,816,100)
14.6%
1,714,102
9.2%
(1,606,011) (1,437,402)
1,871,096
11.7%
25,683
23,794
7.9%
290,768
300,494
(3.2%)
1,896
(215,585)
(46,019)
410 362.6%
(167,583)
28.6%
(104,197) (55.8%)
(259,708)
(271,370)
Profit before income tax
31,060
29,124
6.6%
Income tax
62,194
64,329
(3.3%)
93,254
93,453
(0.2%)
Non-controlling interest
91,524
1,730
92,696 (1.3%)
757 128.5%
Consolidated net income
93,254
93,453
Consolidated net income
Controlling interest
Paloma E. Arellano Bujanda
Investot Relations
[email protected]
Tel. +52 (81) 8389 – 3400 ext.1419
www.grupofamsa.com
(4.3%)
(0.2%)
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Earnings Release 1Q16
Grupo Famsa, S.A.B. de C.V. and subsidiaries
Consolidated statement of cash flows
Thousands of Mexican Pesos
1Q16
1Q15
Operating activities
Profit before income tax
31,060
29,124
Depreciation and amortization
128,400
120,982
Allowance for doubtful receivables
289,640
252,459
Loss on sale of property, leasehold improvements, furniture & equipment
(491)
(181)
Estimated liabilities for labor benefits
11,812
10,609
Interest income
(1,896)
(410)
Interest expenses
406,079
335,071
Trade receivables
(1,361,062)
(1,025,395)
Inventories
(273,983)
(54,409)
Other accounts receivable
(408,086)
(184,244)
80,623
(131,689)
Suppliers
Accounts payable and accrued expenses
57,410
(74,685)
Income tax paid
(30,500)
(22,077)
Demand deposits and time deposits
252,145
738,962
(190,528)
(166,770)
Interest to bank depositors
Exchange gain and losses, net
Net cash flows from operating activities
6,837
133,860
(1,002,540)
(38,793)
(37,434)
(63,640)
Investing activities
Acquisition of property, leasehold improvements, furniture and equipment
Acquisition of intangible assets
(1,096)
334
Proceeds from sale of furniture and equipment
1,815
2,187
Interest received
1,896
410
(34,819)
(60,709)
(144,022)
(80,154)
822,356
604,579
(665,430)
(600,901)
Net cash flow used in investing activities
Financing activities
Interest paid
Proceeds from current and non-current debt and bank loans
Payments of current and non-current debt and bank loans
Share repurchase, net
Net cash flow from financing activities
Decrease in net cash and cash equivalents
Adjustments to cash flow as a result of changes in exchange rates
(707)
(26,749)
12,197
(103,225)
(1,025,162)
(202,727)
8,691
1,695
Cash and cash equivalents at the beginning of the period
2,196,923
1,858,271
Cash and cash equivalents at the end of the period
1,180,452
1,657,239
Notes to the Financial Statements: For a greater depth of analysis, we recommend referring to the
Notes of our Financial Statements at www.grupofamsa.com
Paloma E. Arellano Bujanda
Investot Relations
[email protected]
Tel. +52 (81) 8389 – 3400 ext.1419
www.grupofamsa.com
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