Hypermarcas starts new cycle

After acquiring pharmaceutical laboratories and health and beauty brands between 2008 and 2010, Hypermarcas packed the House for the past three years, with investments in the restructuring of their operations-which included the consolidation of production in Goias and the decrease in consumption and portfolio in changing its organizational design. Starting this year, the company starts a new cycle, with a focus on improving execution, said yesterday the company's Chairman, Claudio Bergamo. This phase should last until 2017.
"We've done a lot in the last few years, but we still have a lot to do. Let's capture the diverse opportunities that still exist, "said Bergamo. The company has divided these opportunities in three blocks: marketing and innovation, commercial and distribution and operations.
According to the Executive, the company will increase their spending on "selectively" marketing, to support the growth of brands. Earlier this year, the company relaunched the line razors Bozzano, the adult diapers Bigfral, and will also relaunch its brand of enamels Risqué and diapers Pompom. The company raised last year its level of expenditure on marketing for about 20% of revenue, compared to 18% in 2012.
The Division of medicines must have record releases this year. "We renew our product lines in all segments of the pharmaceutical division," said Bergamo. The company's portfolio includes Benegrip, Coristina, ASA-Bismol and Metholatum.
On the commercial side, the company will invest more in the management of retail categories. "We have the potential to exercise leadership at the points of sale in the categories in which we are leaders. To achieve these goals, the company conducted a massive process of transformation and compression of your sales force, "said the President. The company began 2013 with nine teams and finished the year with only two. Another goal of the company going forward is to populate the ' blanks ', expanding the distribution of each brand to other channels and regions. The Olla condom, for example, has good presence in São Paulo. Its distribution and sales need strengthening in other markets.
The company plans to invest to increase industrial productivity, reduce the cost of inputs, improve your processes and seek greater efficiencies in operating expenses. To Bergamo, this process starts in a year of many uncertainties. "We don't know if the World Cup will result in increase or decrease of consumption, and also have more holidays and elections". He also sees little room for gains in profitability, there is increased pressure from costs of inputs. If the company can offset this effect with productivity gains, he intends to redirect resources into the marketing.
Hypermarcas casts an adjusted ebitda (discounted cash generation non-recurring expenses) of $ 1.1 billion this year, 10% above the result of 2012. According to Bergamo, this goal is realistic and challenging.
Last year, profit climbed 26 Hypermarcas% to r $ 256,7 million, while net revenues increased 10 percent, to about $ 4.2 billion. The pharmaceutical division advanced 12.2%, to $ 2.3 billion. The consumer division rose 7.4 percent, to $ 1.9 billion, or 11.1%, considering only continuing operations.
Net debt totaled r $ 2.9 billion. The company eliminated its debt exposure to exchange rate variations, with the repurchase of the securities issued abroad, and the protection of the remainder through "hedge". These operations generated a spike in financial expenses, making the profit fall 56 percent in the last quarter of 2013.