October 28, 2017 / 12:51 AM / 10 months ago

Brazil's Hypermarcas misses profit estimates as expenses jump

SAO PAULO, Oct 27 (Reuters) - Hypermarcas SA missed third-quarter profit estimates on Friday after a rise in expenses at the Brazilian drugmaker following the sale of it disposable consumer goods business.

In a securities filing, Brazil’s largest listed producer of over-the-counter medicines said net income slipped 12 percent from a year earlier to 177 million reais ($55 million) in the quarter, below a Thomson Reuters consensus of 191 million reais.

Net revenue rose 18 percent on stronger consumer demand in Latin America’s largest economy, but the company struggled to control and dilute administrative expenses after splitting off its diaper and condom operations.

General and administrative expenses rose 33 percent from a year ago. Research and development costs jumped 46 percent.

Earnings from continuing operations before interest, tax, depreciation, and amortization rose 14 percent to 292 million reais, in line with a Reuters estimate of 288 million reais.

Hypermarcas said discontinued operations subtracted a net 42 million reais from its bottom line.

$1 = 3.24 reais Reporting by Gram Slattery and Brad Haynes; Editing by Andrew Hay

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