November 12, 2012

Vigor Alimentos announces Q3 2012 net revenue of US$166 million

Press release

Vigor Alimentos S.A. announced on Thursday (Nov 8) its third quarter 2012 net revenue of BRL340.3 million (US$166 million), 4.9% higher on-year.

Vigor Alimentos S.A. presented an EBITDA of BRL9.7 million (US$4.7 million) in the third quarter of 2012, an amount 22.7% higher than that of the same period of the previous year. Excluding the UHT milk category, net revenue was up 8.1% during the period. Gross profit rose 29.7% in the quarterly comparison, with a gross margin equivalent to 29.1% of net revenue.

During the third quarter of 2012, the Company moved ahead with their strategy to reposition their products, expand the portfolio and expand the participation of higher value-added products in their revenue mix. Their new yogurt Grego - with vanilla and traditional flavours - was very well received by consumers.

The combination of a better quality mix of products with strong budget discipline across various areas within the Company, resulted in a significant improvement in the gross margin. Gross profit reached almost BRL100.0 million (US$49 million), with gross margin 6% higher than that of the third quarter 2011, however below the full potential of our business. Vigor's EBITDA reached BRL9.7 million (US$4.7 million), a 23% growth over the period. Vigor achieved these results despite a challenging market scenario, with the pace of sales increase reducing within a few categories. Finally, the continuous investment in technology and the revamping of manufacturing processes played an important role in the past few quarters and will continue to be on its agenda.

The results do not reflect all the actions currently undertaken in the Company, across different areas and divisions, but certainly point to the right direction. In the upcoming quarters, the company will continue to work on expanding into new regions, improving execution of our processes and management practices, and reshaping its go-to-market model.

Vigor's total volume in the third quarter 2012 reached 92,400 tonnes, a level 3.2% lower than the 95,400 tonnes sold in the third quarter 2011. Excluding the UHT Milk category, volume was 8.8% higher on a yearly basis. Net Revenues grew 4.9% in third quarter 2012, reaching BRL340.3 million (US$166 million).

The EBITDA for the third quarter of 2012 reached BRL9.7 million (US$4.7 million), representing a 22.7% growth over the third quarter 2011. The EBITDA margin also has risen (to 2.8%) compared to the Margin (2.4%) of the same period of 2011.

Vigor SA has established brands in its portfolio of milk, yogurt, cheese, margarine such as the Danube, Blue Ribbon, Leco, Serrabella, Amelia, Mesa and beyond Carmelita own brand Vigor.