Hypera had an increase in profit in the first quarter, as sales growth above the market average offset the effect of higher financial expenses.
The maker of the Rinosoro and Dramamin brands reported this Thursday that its net profit from January to March totaled 349.5 million reais, up 13.6% over the same period in 2021.
Net revenue for the quarter reached 1.49 billion reais, up 27.6% year-on-year, strengthened by the expansion of organic sales and the addition of brands purchased from Takeda.
At the other end, selling, administrative and general expenses grew 23.9% year-on-year to 166.9 million reais, but fell 0.4 percentage point as a proportion of net revenue.
As a result, operating income measured by earnings before taxes, interest, depreciation and amortization (Ebitda) of continuing operations grew 39.7% to 505.7 million reais. The Ebitda margin grew 3 percentage points to 33.9%.
On the other hand, the financial result was negative by 173.6 million reais, a weight 132% higher in the annual comparison, as a result of the increase in interest expenses, and the greater indebtedness of the company.
Hypera added that it should benefit this second quarter from regulatory approval to readjust drug prices by up to 10.9% in Brazil, which will help offset “part of the inflationary pressures recorded in the last 12 months in its operating costs and expenses.”
In addition, this quarter’s operation will begin to compute sales of products purchased from Sanofi in 2021, which includes brands such as AAS, Naturetti and Cepacol.
Thus, Hypera reaffirmed its stipulated financial projections for 2022.
Company executives discuss with analysts the quarter’s figures and performance projections on Friday at 11:00 am (Brasilia time).