Yoghurt growth helps propel Vigor sales

Yoghurt growth helps propel Vigor sales

Brazilian dairy group Vigor said it expanded its market share of the Brazilian dairy category when it booked a jump in third-quarter sales.

The company said third-quarter net revenue rose 82.8% to BRL906.7m (US$204.9m). Consolidated net revenue totalled BRL1.47bn, up 28% year-on-year. The strong top-line performance reflected market share gains in its main product categories, and the company said it hit "record high" shares in the cheese and dairy sector. "In the dairy category, in addition to the continued growth of Greek yogurt sales, the company also experienced a rebound in regular yogurt sales," CEO Gilberto Xandó noted. 

Xandó added the group is growing its grocery and spreads business through innovations such as Margarina Vigor Sabor Manteiga. He saod: "We believe the groceries and spreads categories have an enormous potential for growth in the consumer and foodservice channels. We will continue investing in our brands and stepping up our initiatives to expand both our customer base in the areas in which we have a smaller market share and our portfolio of high value-added products."

The company expects future sales growth to be further supported by capacity expansion. Vigor is opening a new plant in Barra do Pirai, Rio de Janeiro State, and this will go into operation in 2016.

Sales growth and productivity gains meant Vigor booked a 129.3% rise in EBITDA to BRL124.5m. EBITDA margin expanded to 13.7% in the quarter, up 2.8 points from the prior year period. Consolidated EBITDA stood at BRL142.9m, an increase of 65.8%. 

Net income jumped 253.1% to BRL57.6m. The net financial result was boosted by goodwill gains from Vigor's move to buy out Arla Foods from their local venture. The deal, announced last year, saw Arla take an 8% stake in Vigor.