Hypermarcas gets ready for a year of harvest
Valor Econômico
After closing nine acquisitions in the markets of medicines and personal beauty last year, 2011 will be the "harvest year" for Hypermarcas, said the CEO of the company, Claudio Bergamo, in a conference for the announcement of the balance sheet. The number of acquisitions in 2010 was the record of Hypermarcas that usually makes an average of up to five acquisitions a year. The accelerated pace of acquisitions was used by the company to justify the fall in the Ebitda margin (Earnings before interest, taxes, depreciation and amortization) in the year, which was at 23.2%, compared to 25.7% in 2009. "We accumulated the inefficiencies of the acquired companies without the time required by the synergies. Several investments we've made will mature now and we will start gathering the results", he said.
The fourth quarter was probably the worst for Hypermarcas, according to the President of the company. "We made a lot of acquisitions at the same time and we had a lot of duplicated structures. Now, the acquisitions will slow down". The company ended the fourth quarter with profits of R$ 87.9 million (US$ 50 million), an increase of 6% compared to the same period in 2009. The results of the last quarter of 2010 consolidate the acquisition of York, incorporate the numbers of Bitufo in the last two months and the data Pom Pom brand in December.
In the period, the net earnings grew 34% to R$ 942.6 million (US$ 535.6 million). Of the total, R$ 785.2 million (US$ 446.1 million) concern the earnings from such brands (brands that belong to the portfolio for at least 12 months), representing organic growth of 12%. The Ebitda was R$ 223.6 million (US$ 127.1 million), growth of 45%. For 2011, the goal of the company is an Ebitda margin of 24% to 25%. To pull the rate up, a major bet is Mantecorp, company acquired in December, which registered Ebitda margin of 29% last year. Pom Pom, acquired in November for R$ 85 million (US$ 48.3 million), will be an umbrella for several launches aimed at children in 2011. "Pom Pom should be one of the most important brands of the company in the next two or three years, with accelerated growth", says Bergamo.
In 2010, Hypermarcas bet on the strategy of reviving dormant brands such as Risqué, Monange, Biocolor and Bozzano. The company has launched more than 400 items throughout the year, number that could increase to up to 700 in 2011, that is, two per day. Behind the leader in generics, Hypermarcas will readjust the prices of its products at 4.57% on average as of March 31. A resolution published this month in the "Federal Official Gazette" authorizes medicines to increase from 3.54% to 6.01%. In 2010, the organic growth of the pharmaceutical segment for the same brands of the company was 22%. "In 2011, we should continue at the same pace", said Bergamo. For him, the adjustments in the base rate of interest to contain inflation should slow down the demand.