* Profit at 68.4 mln reais beats poll forecast
* EBITDA seen around 950 mln reais next year
* Results confirm recovery in consumer sector
By Guillermo Parra-Bernal and Vivian Pereira
SAO PAULO, Nov 10 Hypermarcas SA,
Brazil's largest diversified drugmaker, returned to profit in
the third quarter as revenue grew slightly above expectations
and debt-servicing and currency hedging costs tumbled from the
The results were the latest showing that a year-long
slowdown in the consumer goods industry is finally easing, with
producers of cosmetics, generic drugs and household goods such
as Hypermarcas likely to benefit most from Brazil's improving
growth trends. Hypermarcas had lost money for two of the past
Surging pharmaceutical sales and the integration of
acquisitions helped the São Paulo-based producer of Engov
hangover pills and Bozzano shaving cream post net income of
68.38 million reais ($33.4 million) in the third quarter,
according to a securities filing late on Friday. The result
compared with a loss of 190.5 million reais a year earlier.
Third-quarter profit beat the 53 million reais estimate in a
Reuters poll of analysts. Management will discuss third-quarter
earnings in a conference call with investors early on Monday.
Chief Executive Claudio Bergamo's efforts to streamline
operations has restored profitability after a spree of
acquisitions in the past four years boosted debt and made
Hypermarcas too exposed to an economic slowdown. Bergamo picked
pharmaceutical goods and beauty care as the firm's focus,
shunning the slower-growing foods and household goods units.
In a separate statement released late on Friday, Management
also set an estimate of earnings before interest, tax,
depreciation of around 950 million reais for next year, up from
guidance of at least 850 million reais in the indicator, known
as EBITDA, for this year. EBITDA is a measure of a company's
ability to generate profits from its core business.
Lower debt and stronger cash flow generation, coupled with a
stable currency, helped Hypermarcas post a net financial
shortfall of 54.9 million reais, compared with a deficit of
331.8 million reais a year earlier. The net financial result
line is calculated by the difference between debt-servicing and
currency hedging expenses and non-operating income, such as
gains from financial investments.
Revenue jumped to 992.9 million reais from 832.8 million
reais a year earlier, a gain of 19 percent on a year-on-year
basis, the company said. Sales of pharmaceutical products, which
accounted for about 54 percent of the company's net revenue in
the quarter, soared 39 percent, while those of beauty care goods
rose 2.2 percent on a year-on-year basis.
The Reuters poll had predicted revenue at 987 million reais
for the third quarter.
EBITDA almost quadrupled to 226.6 million reais last quarter
from 66.3 million reais in the third quarter of 2011. The EBITDA
margin, or how much operating profit was generated from sales,
soared to 23 percent from 7.9 percent a year earlier.
EBITDA was expected to come in at 209 million reais in the
Reuters poll, below the number reported by the company.
Shares of Hypermarcas, which shed 2.1 percent on Friday and
closed the session at 15.32 reais, are up 80 percent so far this