Hypermarcas price adjusting leads Exchange

Hypermarcas is in a new process of price adjustment due to the currency exchange. The goal is to pass on cost increases whereas the dollar to $ 3.10. A new table begins to be carried out this month in some categories of the consumer division, said President Claudio Bergamo.
In February, the Exchange was r $ premise 2,60 per dollar, but the American currency against high real was stronger than expected. The dollar advances 25% to 50% in 2015 and in 12 months.
The price increase of 6% to 8% in consumption in the second quarter was "fully implemented", said Bergamo. And, if the dollar steady at r $ 3,40, new highs will be analysed.
Hypermarcas plans to decrease the weight of the strategy to gain market share from high-volume products and lower margins in the Division of personal hygiene and beauty (consumption), to improve profitability and cash flow in the second half, said the President.
The free cash flow of nearly $ 160 million from April to June 2014 was negative at r $ 7 million in the same period this year. There was less operating cash generation, especially the largest formation of stocks, due to the growth of the volume of sales in recent quarters.
The leverage index increased from 2.65 times earnings before interest, taxes, depreciation and amortization (Ebitda) adjusted for the past 12 months accumulated at the end of 2014 to 2.8 times the end of June 2015.
Hypermarcas plans to get lower-margin products opportunities for price adjustments that improve profits. The consumer division receives more intensely the effect of the Exchange and will be the focus of assessment.
Net revenues grew 10.8% Hypermarcas from April to June this year, as compared to the same period in 2014, to $ 1.26 billion. Ebitda totaled r $ 261,2 million, a fall of 3.7%. Net profit fell 9.3 percent, to $ 110,9 million, with negative impact of R $ 23.6 million of the exchange rate.
Net sales advanced 15% on consumer division and 7.7% in pharmaceutical unit, which sells medicines. The performance in farma, owner of brands such as Benegrip, Asa and selling point, was below expectations by analysts for specific problems in production, import of raw materials and certain imbalance between supply and demand in the retail business, the company reported. The $ 27 million worth of applications served represented additional growth of 4.2% in the quarter and a total of 11.9% advance in business revenues, according to the President. Consumer demand in the Division rose 15% pharmaceutical.
As part of a scenario more difficult, although slow pace of Hypermarcas releases in consumption this year, to await the maturation of investments. Practically the entire portfolio has been renovated over the past two years and reduce a bit will be healthy, mainly to contain cash consumption, said Bergamo.
In farma, the situation is reversed-the goal is to maintain or accelerate the launches. Due to regulatory restrictions, each new product brings a quick gain of revenue without the need to use resources as great as there is pent-up demand, said Bergamo.