M White sees good opportunities in breads and chocolates

In addition to its plan to start production of mixes for cakes and crackers, M white, manufacturer of biscuits, pasta and flour, enter new markets. "We are aware of the opportunities for acquisitions. The segments of cereal bars, chocolates and industrialized breads are quite interesting, "says Álvaro Bandeira de Paula, Director of investor relations of M white.
The last acquisition of the company was the Santa Lucia Mill, in May last year. The company specializes in wheat milling and also manufactures biscuits and pasta. While studying possible acquisitions, the company seeks to place to install your factory of toast. "The start of production of these products must be for 2014," says Flag. Already the mix for cakes will begin this year and will be concentrated in the unit.
The products launched by the company in the past two years accounted for 4.6% of the total sales of 2012. This fact "attests to the positive expectations regarding the evolution of this percentage over the next few years," said the company in its balance sheet.
In 2013, the company will continue pursuing its plan to reach 100% of verticalization of flour, its main raw material. For this will build two mills: one in its plant in Recife and another in Bento Gonçalves. The company owns four mills in the Northeast, but still not self-sufficient in the production of flour in the region. "In Rio Grande do Sul also have to buy flour from a third party, since the nearest mill of this manufacturing unit is located in Bahia," says Flag.
Performance
In 2012, the company's net income reached r $ 470,5 million, up 28.4 percent compared to the previous year. The net revenue of the period was r $ 3.5 billion, an increase of 21.8%. In the fourth quarter of 2012, the manufacturer has made an investment of R $ 28.7 million which were intended for the expansion and modernisation of plants. Considering all the year round, the disbursement was r $ 117.2 million. In 2013, the company reported on its balance sheet that will invest an even greater value, though not reveal exact amount.
The M is the market leader in mass national and biscuits with participation of about 26% in each of the segments. Currently, the crackers account for 54.8% of the company's revenue. The masses represent 22% of revenues while the flour and bran is with 17.7% and of margarines and fats with 5.5%.
Perspectives
Due to high wheat checked last year, the company had to pass on the costs to the prices of products in an attempt to preserve their margins. But this year, the company works with an expectation of a fall in the price of wheat in May and April. "The company will continue with efforts to restore their margins, which include a number of actions such as expanding sales volume, improving the mix of products sold and administration of cost pass-through to prices," reported on its balance sheet.