The year 2017 presented a slow recovery macroeconomic context, impacted by the crisis of the last two years. Believing in the resumption of the economy reflected by greater generation of formal jobs, decline of interests and inflation under control and in its commitment in bringing more life to people, Aché maintained its level of investment with initiatives like the new industrial complex situated at the Northeastern region, preparing the business support platform, and even created 247 new additional jobs.
The force of Aché´s brand, allowed the realization of great conquests, overcoming limits and growing above the pharmaceutical market.
For the calculation of the size of the Total Pharmaceutical Market (TPM), the IMS Health Brasil database, main consulting firm in the sector, is used, according to the PPP (Pharmacy Purchase Price) methodology, which considers the average discount for each product SKU, applied over the Gross Revenue from the factory list price.
Even in a still challenging environment, Aché grew above the market average and kept investing in Innovation, Quality, Logistics, Operational Excellence, Information Technology and Marketing, totaling BRL 750 man of the Company’s Business Units.
Aché reached a net income of about BRL 3.0 billion with growth of 10.5% in relation to 2016. The EBITDA (profit before interests, taxes, depreciation and amortizations) reached BRL 870.4 million, with a progress of 6.9% in relation of the previous year and margin of 29.3% in the accumulated period of 2017.
The net profit reached BRL 565.3 million with increase of 3.8%. The profit per share reached BRL 8.8 in the year with increase of 3.8% in relation to 2016. The net leveraging was 0.01 x EBITDA accumulated in 12 months.
|Sales and administration costs||(254,4)||-31,3%||(380,3)||-40,6%||(1.090,9)||-40,6%||(1.306,1)||-44,0%|
|Operating profit (EBIT)||311,9||38,4%||267,8||28,6%||769,8||28,7%||814,3||27,4%|
|Net financial result||(13,7)||-1,7%||(5,8)||-0,6%||(35,6)||-1,3%||(19,6)||-0,7%|
|Profit before income taxes||298,2||36,7%||262,0||28,0%||734,2||27,3%||794,7||26,8%|
|Net profit per share||3,6||0,4%||2,9||0,3%||8,5||0,3%||8,8||0,3%|
The Net Revenues grew by 10.5% in relation to 2016 reaching BRL 2,967.9 million. In the fourth quarter of 2017, the Net Revenues totaled BRL 936.4 million, 15.2% higher when compared with the same period of the previous year.
A strong, broad and diversified portfolio contributes toward the Company’s turnouver in a sustainable way. In 2017, the product with the best selling product representing only 4.6% of the total Net Revenues, demonstrating the low concentration of its portfolio.
In 2017 the Gross Profit was BRL 2,158.6 million, 13.9% higher in relation to same period of 2016.
Accumulated EBITDA (profit before interests, taxes, depreciation and amortizations) reached BRL 870.4 million, 6.9% higher than the previous year and with an EBITDA margin of 29.3% in the accumulated period of 2017.
When performing efficient portfolio management, by aggregating innovative products and that add value to the broad pipeline, Aché has been advancing, for ten years now, its net earnings, reflecting in a constant growing EBITDA enabling continuous investments in people, technology, quality, innovation and operational excellence.
The Company closed 2017 with a net financial debt of BRL 5.6 million. The gross debt sums up to BRL 174.6 million and has a main characteristic of long term.
|(BRL MM)||2016||2017||Var (%)|
|Loans and Financing – Short Term||44,2||43,1||-2,5%|
|Empréstimos e financiamentos - LP||128,6||131,5||2,3%|
|Cash and Cash Equivalent||134,4||169,0||25,7%|
The Company’s conservative financial strategy, which maintains its capital structure unlevered and adequate liquidity profile, associated to the resilient nature of the pharmaceutical sector and its strong positioning as leader in the Prescription segment in Brazil, allowed the maintenance of the rating within the acceptable level of credit above the Brazilian sovereign rating.
Solid production line at the São Paulo´s plant
• Female and Male Health
• Central Nervous System
• Pain and Fever
• Flus and Colds
• Vitamins, Minerals and suplements
• Female and Male Health
• Central Nervous System
• Dermatological Drugs
• Dermatological Cosmetics
• Specialties Care (Hospital)
For the 11th consecutive year, the Company maintained its leadership in medical prescription, with 6.63% of market share, according to Close-Up International, one of the main audit companies and prescription market reports.
In 2017, the Demand Generation Force visited 167,000 healthcare professionals, making a total of 5,068,898 million visits during the year. This performance has assured Aché a prominent position in prescription in the main medical specialties. Aiming to bring closeness and increase the relationship with physicians and Healthcare professionals, even in regions not visiter yet, the Company consolidated Conecta Aché (“Aché Connect”), platform for virtual visits.
The results of this investment contributed toward an expansion of 491 visited cities, start of visitation to dentists, with the registration of 400 professionals and an impact on 6 thousand physicians.
Representing 72.7% of the Company’s Net Revenue, the Prescription Unit presented an evolution of 8.8% RL in BRL and 2.8% in units, when compared to the previous year. Such result was obtained, mainly, through high capillarity of capillarity of the Demand and Sales Generation Forces and through diversification of the portfolio, leveraged through continuous investments in innovation - one of the main business drivers. Adding all the franchises, ten products were launched, among new ones and line extensions. The Business unit ended the year with a 9.1% market share (PPP - BRL).
Prescription Business Unit´s launches
|Osteomuscular Franchise||Women's and Men's|
System (CNS) Franchise
One of the first results od the recent
acquisition of the Laboratório Tiaraju,
brigs the exclusive association of two
collagens in on sachet cotributing to
the joint health.
Anti-inflammatory launched from the
partnership with a Japanese laboratory
indicated for tendinitis and osteoarthritis.
Brings an exclusive association combining iron
and A and D vitamins in its composition. Indicated for
prevention of cases of anemia, especially in children of
seven months to three years old.
Integrates the men's health portfolio, indicated to treat
the disease characterized by the prostate enlargement.
Sany D 50.000 UI
Extension of the vitamin D line, recommended
for cases of strong nutrient deficiency.
Trezor 5 mg
Indicated to treat high cholesterol
Complements the portfolio of molecules to treat depression, also
benefiting women who feel the menopause symptoms and patients
that use a number of medications simultaneously.
Indicated to treat Alzheimer's disease
Indicated to treat insomnia.
Dr. Ana Paula Miguel Barreira – Pediatrics
2 General Practitioner
In 2017, we encouraged the creativity of employees through the Brand Bank campaign, which collected suggestions of names for future product launches. The action reached almost 10 thousand suggested brands.
The OTC Business Unit represents 8.7% of the Company’s Net Revenue and increased by 5.1% in BRL and 0.4% in units. Besides maintaining medical promotion activities, the OTC Business Unit, responsible for Aché’s portfolio of over-the-counter drugs, invested in actions to intensify brand recognition by the consumer throughout 2017 through initiatives at points of sale and the media.
In 2017, Aché brought to the market the Achevita Line for whoever seeks health and vitality with convenience. Products with advanced formulas and differentiated formats in six segments: good shape, women’s health, bone and joint health, daily nutrition, hearth health and children´s health.
Launch of Achevita, line of nutraceuticals, features actress Maria Fernanda Cândido
Besides this boost in the OTC Business Unit portfolio, in 2017 Aché brought to the market an important launch for the Brazilian family: Effex.
The high protection repellent, introduced in the market in unique ultra version, with 30% Icaridin, and in baby and family versions, safe for use in children from 6 months old and pregnant women. The product offers up to 13 hours of protection and is effective in the fight against diseases caused by Anopheles, Culex and Aedes aegypti mosquitoes, like dengue, zika, chikungunya and yellow fever. Together, the actions reflected positively on the Unit’s performance, which closed the year with a 2.4% market share (PPP - BRL), the best level since 2012.
Effex, Repellents Line. Launch of OTC Business Unit
|Cisberry||Extract of cranberry with antioxidant compounds, which benefits the woman’s urinary health.|
|Effex||Insect repellent to avoid dengue, zica virus, chikungunya and yellow fever.|
|Inelatte||Calcium supplement in chewable tablets.|
|Proepa Uni||Omega 3, which helps maintain healthy triglyceride levels and contributes to heart health.|
|Svelim||Based on green coffee purified extract, it aids in metabolism and to keep a good shape.|
Acting in a competitive segment, Aché generics represent 10.1% of the Company’s Net Revenue and are present in most points of sale of the country through the brand Biosintética. With a broad offering of molecules that meet diverse medical specialties, Aché offers to the population quality products with competitive prices.
The unit grew by 3.3% in units and 9.5% in net revenues, closing the year with market share of 6.9% (PPP – BRL).
The portofolio’s renewal was also fundamental to the Unit’s performance. Eight (8) products were launched in 2017, including an original generic in the Central Nervous System franchise: Desvenlafaxine. Also, two line extentions were launched. In 2018, assuring profitability remains a priority. The Generics Business Unit will further seek to maintain the growth in demand and in units at the same pace as the pharmaceutical market.
Generics Business Unit launches
|Betamethasone + Ketoconazole +|
Neomycin cream and ointment
|Recommended for skin infections.|
|Desvenlafaxine||First generic launched on the market, indicated for the treatment of depression.|
|Doxazosin 2 mg||Indicated for the treatment of symptoms of benign prostatic hyperplasia (BPH).|
|Losartan + |
|Another product of the Cardiovascular Franchise.|
|Memantine||First generic of the Company for the treatment of Alzheimer’s disease.|
|Rosuvastatin 5 mg||Line extension, medicine recommended to balance blood cholesterol levels.|
The Dermatology Business Unit, which already represents 4.5% of the Company’s Net Revenue, has achieved surprising results both in the Dermatological Franchise as well as in the Dermocosmetics Franchises. In BRL, it grew 49% and in units 16.1% compared to 2016. The net revenues of the Unit reached BRL 136,4 million.
We continue to intensify the relationship with dermatologists, opinion makers and other healthcare professionals, and have achieved the leadership in prescription in three dermatological cosmetics of the Profuse line, with Densifiant Fondant and Densifiant Sérum and Clair Olhos. We also carried out actions to activate our brand in points of sale and, wagering on the digital platforms, we launched the Dermalive initiative, with online broadcasts via Facebook Live in which invited dermatologists answered questions from consumers and users of the social network. There were five actions throughout 2017 and over 800 thousand views.
Considering Aché’s market - our portfolio of dermatological drugs and dermatological cosmetics currently reaches 45% of the total market - Profuse is already the 8th most sold brand in demand in units and the 7th in demand in BRL (PPP). In prescription’s volume, we were the 3rd most prescribed brand in the quarter accumulated from October to December 2017. With regard to dermatological drugs, we also recorded an increase in demand in units.
In 2017, we launched two important products in the dermatological drug franchise: Resgat Creme [Cream] and Resgat Pomada [Pomade]. While in dermocosmetics, we launched five new products.
Profuse, a line inspired by Brazilian skin features
Leadership in prescription volume three months after launched.
Ensolei Antiacne Color FPS 30
Another product of the Profuse line, ideal for people with tendency, presence or history of acne.
Ensolei Compact Color FPS 50
Current leader in Prescriptions.
Kits promocionais de Profuse
Nutrel suavizante balm
Soothing facial moisturizer indicated for daily use.
|Resgat Creme e Resgat Pomada|
Indicated for the relief of inflammation and itching
due to skin diseases (psoriasis, atopic dermatitis
and/or allergic contact dermatitis).
In 2017, we organized the demand structure into two teams to act on different fronts - one focused on the public market for all the Company’s products and another focused on the private market in the Oncology, Hospital and Vascular segments - which positively influenced the Unit’s performance. We have also improved internal processes and, in partnership with some suppliers, have set up flexible strategies for each customer profile.
In the context of the Specialty Care portfolio, the newly created New Business Development Coordination (segment-specific) sped up the portfolio renewal process, with the mapping of business opportunities for launches of similar drugs directed at health franchises in which we don’t operate yet. We entered the anesthetic franchise. In addition, we have made progress in obtaining the marketing authorizations of the first high value-added oncological products in cooperation with international partners.
The Unit represents 3.3% of the Company’s total Net Revenues and registered a grouth of 13% in BRL and 19.6% in units. Following favorable results in government tenders, in 2017 we provided products for the Secretariats of Health of ten Brazilian states.
Simbilex, launch of the institutional and Specialty Care Units
It marks the new launch cycle of the
Unit and inaugurates the presence of Aché in
the hospital anesthetics franchise.
Indicated for the treatment of growth deficiencies caused by hormonal disorders.
Antianemic that stimulates the formation and launch of red blood cells from the bone marrow.
Mainly used for the treatment of malignant neoplasm of the prostate, precocious puberty and
Recommended for the treatment of chronic arterial disease.