Brazilian health and hygiene company Hypermarcas has announced a further rise in sales as its low price strategy entices consumers to part with their hard-won reais in the midst of a recession. Sales rose 16.2 percent in the consumer division, which includes personal care products, while the company’s pharmaceutical unit saw an increase of 7.1 percent.
However, the consumer goods producer’s price-focussed strategy has hit its profits hard, with net income crashing down to the tune of 36.5 percent in the third quarter of 2015 versus the same period a year earlier. Currency fluctuations also affected the company’s bottom line, pushing expenses up by 58.3 percent.
EBITDA fell 2.9 percent to R277.9 million, below the widely forecast R290 million.