SAO PAULO, Oct 27 (Reuters) - Brazilian consumer goods maker Hypermarcas SA posted a 48 percent jump in third-quarter profit as a currency hedging program eliminated the impact of a volatile exchange rate on foreign debt-servicing costs.
Brazil’s biggest producer of personal hygiene products and pharmaceuticals booked net income of 119 million reais ($48 million), according to a late Friday securities filing, in line with the average estimate in a Reuters poll.
Hypermarcas boosted its marketing budget 24 percent from a year earlier but revenue rose just 7 percent, on pace with inflation, as an economic slump weighed on household demand.
Still, the company protected itself better against a weakening currency, which had pushed up the cost of foreign debts by 51 million reais in the third quarter of 2013.
Brazil’s real lost more than 9 percent from June to September this year, but a new hedging program eliminated the impact of the currency swing at a cost of 14 million reais.
Earnings before interest, taxes, depreciation and amortization, rose 11 percent to 277 million reais, in line with analysts’ estimates.
$1 = 2.47 Brazilian reais Reporting by Brad Haynes