M White predicts 5% adjustment

São Paulo-M White plans to readjust by about 5% to the price this year. The increases should be implemented by sales channel, in the period from March to may.
"We want to do [adjustment] around 5%, no more than that. But I believe that growth this year will come more from the increased volume than by the prices, "said Vice President of investments and controlling of M white, Geraldo Mattos junior, yesterday in a teleconference with analysts.
For him, unlike last year, when the company was able to implement larger price adjustments in 2017 there is less room for such a practice. In 2016, the average price of the products marketed by advanced 8.8 percent.
This increase, combined with the high of 6.1% in sales volume, which totaled 1.79 million tons, led to a high of 15.3% on the company''s net revenues in 2016, totaling R$ 5.33 billion.
Net income for the year was R$, up 29.9% 784,400,000 compared with the previous year. Ebitda, earnings before interest, depreciation and amortization, totaled R$ 919,400,000, 33.9% advance in equal comparison.
"The company should suffer from price pressure and competition, as well as the replacement of products, given the expectations that 2017 is a deflation year for food prices in Brazil," the strategists of Itaú Corretora, Lucas Tambellini, Fábio Perina and James Binsfeld, in a report, citing assessment made by the analyst Antonio Barreto.
Participation
For the Executive of M white, 2017 is expected to maintain the growth of the percentage market share of company.
In 2016, the market share of the manufacturer in the category of cookies grew 0.7 percentage points (p.p.) to 28.6%, and in advanced 0.4 p.p., nearing the 28.8%.
"We expect a growth [in sales] in volume, which leads to gain market share, but with a more expressive growth in new categories, with higher added value, such as toast and pastries, where we have significant conditions. In the traditional segment, crackers, pasta and wheat flour, already have significant volumes, "said Mattos junior.