By Brazil Stock Guide — Hypera Pharma, one of Brazil’s largest pharmaceutical companies, reported a 14.7% increase in third-quarter net profit to R$523.2 million ($96 million), supported by stronger sales, lower financing costs and the launch of Semavy, its new semaglutide-based treatment for diabetes and obesity. Net revenue rose 9.4% year over year to R$2.44 billion, according to results released on Tuesday (October 27).
The launch of Semavy marked Hypera’s entry into Brazil’s rapidly expanding market for GLP-1 drugs, a category that includes treatments used for weight management and type 2 diabetes. The company said Semavy reached approximately 93,000 units in retail sales during September, capturing more than 11% of Brazil’s injectable semaglutide market by volume in its first month of sales. The product was available at more than 18,000 retail locations nationwide.
The new drug helped accelerate Hypera’s retail performance. Sell-out, a measure of sales to end consumers, increased 6.6% during the quarter, outperforming the company’s relevant pharmaceutical market by 1.2 percentage points. Growth was also supported by skincare, gastroenterology, cardiology and diabetes treatments. However, weaker demand for cold and flu medications partially offset those gains, as the number of influenza cases in Brazil declined by approximately 23% from a year earlier.
The expansion came at a cost. EBITDA from continuing operations increased just 3.4% to R$782.3 million, while the EBITDA margin narrowed to 32.1% from 34% a year earlier. Marketing expenses rose 13.1% to R$414.7 million, reflecting increased advertising, consumer promotions and medical outreach associated with recent product launches, particularly Semavy. Sales expenses also increased 15.2%, outpacing revenue growth.
Despite the pressure on operating profitability, net income from continuing operations climbed 16.1% to R$527 million, benefiting from a 35.3% reduction in net financial expenses. Hypera attributed the improvement to lower net debt and declining interest rates in Brazil. Net financial expenses fell to R$148.2 million from R$229.1 million in the same period last year, providing a significant boost to bottom-line earnings.
Hypera also continued to strengthen its balance sheet. Net debt declined by R$293.4 million during the quarter to R$5.61 billion, bringing leverage down to 2.0 times trailing 12-month EBITDA from continuing operations, compared with 2.1 times at the end of June. The company generated R$762.8 million in operating cash flow and R$553.7 million in free cash flow, although both figures were lower than a year earlier. Inventory efficiency improved, with inventory days falling to 186 from 221 in the third quarter of 2025.
For the first nine months of 2026, Hypera reported net revenue of R$6.79 billion, up 24.3%, while net income from continuing operations surged 83.9% to R$1.36 billion. The company also announced R$185.2 million in interest on equity payments, equivalent to R$0.26 per share. The central question for investors is whether Semavy’s strong initial market penetration can sustain revenue growth while Hypera brings promotional spending under control and continues reducing debt.
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