In This Article:
Release Date: March 21, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Hypera SA (HYPMY) achieved a 9% increase in sellout for 2024, with significant growth in the institutional non-retail market at 26%.
-
The company successfully launched over 50 new products in 2024, enhancing its product portfolio across various categories including consumer health and skincare.
-
Hypera SA (HYPMY) invested over 2.3 billion in marketing, innovation, and production capacity, demonstrating a strong commitment to growth and innovation.
-
The company was recognized for its sustainable practices and corporate governance, being included in the FTSE for good and the S&P Global sustainability yearbook.
-
Hypera SA (HYPMY) posted the highest operational cash flow in its history, exceeding 2.5 billion Brazilian reals, benefiting from working capital optimization.
Negative Points
-
Net revenue for 2024 decreased by 6% compared to 2023, attributed to the working capital optimization process.
-
Operational income was reduced due to lower operational leverage and a mix of products sold with lower margins.
-
The company's EBITDA margin from continuing operations was 28%, with a significant reduction in net income from continuing operations by 19% for the year.
-
Hypera SA (HYPMY) faced increased competition in the generics market, impacting pricing strategies and market share.
-
The working capital optimization strategy, while beneficial in the long term, resulted in short-term pain and reduced sales in the short term.
Q & A Highlights
Q: Can you provide an update on the progress of your inventory adjustment process and its impact on sales growth and operational leverage? A: Bruno Oliveira, CEO: We have been able to accelerate the inventory adjustment process faster than initially planned. By March, we were operating with 70-day terms, aiming for 60 days by April. We expect to normalize operations by May, with sell-in and sell-out aligning. The second quarter will still be impacted, but we anticipate more stable results from the third quarter onwards.
Q: How is Hypera SA planning to phase in new product launches, and what impact will this have on market share? A: Addo Mario Coto, IRO: In 2024, we launched 50 new products, including line extensions for major brands. We are preparing for patent expirations starting in 2026, with a potential market of 10 billion. Our focus is on chronic treatments, CNS, cardiology, and endocrinology, along with vitamins, probiotics, and skincare. We aim to balance our portfolio between chronic and acute treatments.