Nutriplant Industria e Comercio : 2Q16 Results

NUTRIPLANT INDÚSTRIA E COMÉRCIO S.A. RESULTS FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2016

Nutriplant Indústria e Comércio S.A. (NUTR3) discloses the operating income (loss) for the first half ended in June 2016, with the following highlights:

• Gross profit reaches R$3,2 million in the first half of 2016, representing a 23.0% margin, higher than the 19.4% margin in the same period of 2015, in which the gross profit amounted to R$3.6 million;

• Net result in the first half of 2016 was negative by R$1.2 million, an improved outcome when compared to the negative net result of R$7.7 million in the same period of 2015;

• EBITDA reaches negative R$2.5 million in the six-month period ended June 30, 2016, lower than the EBITDA of R$0.92 million recorded in the same period of 2015;

• Net revenue reaches R$13.9 million in the six-month period ended June 30, 2016, 25.8% lower from the amount of R$18.8 million recorded for the same period of 2015.

ECONOMIC-FINANCIAL PERFORMANCE

In the first half of 2016, Nutriplant recorded a net loss of R$1.2 million, a significant improvement when compared to the net loss of R$7.7 million in the same period of 2015. The main factor positively impacting this net result was the R$7.3 million gain from foreign exchange variations, basically derived from liabilities due in US dollars to foreign suppliers.

In the first half of 2016, Nutriplant recorded a negative EBITDA of R$2.5 million, a reduction when compared to the positive amount of R$0.92 million recorded in the same period of 2015. This decrease was mainly driven by the reversal of federal tax credits on inputs that will no longer be used by the Company, recorded in other operating expenses.

In the six-month period ended June 30, 2016, Nutriplant's net revenue amounted to R$13.9 million, 25.8% lower than the R$18.8 million recorded in the same period of 2015. Revenues dropped as a result of (i) producers' postponing the purchase of fertilizers due to foreign exchange volatility; and (ii) a reduced demand due to the downturn in the sector's economic activity in the period. Gross profit reached R$3.2 million in the first half of 2016, 11.9% lower than the amount of R$3.63 million recorded in the same period of 2015. Gross margin

recovered, to reach 23% in the first half of 2016 from 19.4% in the same period of 2015. This increased margin was the result of a greater share of distinguished products in the mix of products sold. Nutriplant continues to focus on its growth in the special fertilizers segment, which have margins higher than average.

Costs with products sold in the first half of 2016 totaled R$10.7 million, accounting for 77.0% of net revenue, falling 29.1% from the R$15.1 million recorded in the same period of the previous year. Costs of products sold accounted for 80.6% of net revenue in the first half of 2015.

General, administrative and selling expenses totaled R$4.5 million in the first half of 2016, up 13.6% compared to the amount of R$3.9 million recorded in the same period of 2015. This increase is mainly driven by the recognition of losses realized by the Company's management as a result of its clients' default. Manufacturing overhead expenses totaled R$2.9 million in the first half of 2016, that is, down 5.7% from the amount of R$3.1 million recorded in the first half of 2015. This decrease is the result of Nutriplant's ongoing efforts to reach profitability levels consistent with the segment in which it operates.

Consolidated Financial Highlights (R$ 000)	1H15 % NR		1H16 % NR		Δ % 1H15-1H6
Gross revenue	21.913	18.095	-17,4%
Net revenue	18.772	100,0%	13.929	100,0%	-25,8%
Cost of products sold	-15.139	-80,6%	-10.730	-77,0%	-29,1%
Gross profit	3.633	19,4%	3.199	23,0%	-11,9%
General, administrative and selling expenses	-3.940	-21,0%	-4.475	-32,1%	13,6%
Other (expenses) income	841	4,5%	-1.611	-11,6%	-291,6%
EBITDA	917	4,9%	-2.526	-18,1%	-375,5%
Financial income (loss)	-8.400	-44,7%	1.411	10,1%	-116,8%
Net income/(loss)	-7.668	-40,8%	-1.196	-8,6%	-84,4%

BANKING INDEBTEDNESS

In the first half of 2016, the Company's net financial result posted a significant recovery, from R$8.4 million of financial expenses in the first half of 2015 to R$1.4 million of financial revenue. This amount is composed of net interest, foreign exchange variation on assets and liabilities in foreign currencies, discounts granted, and adjustments to present value expenses, among others. In the first half of 2016, financial income (loss) was impacted by the amount of R$7.3 million of revenues from foreign exchange variation, mostly associated with long-term liabilities denominated in US dollars due to foreign suppliers.

Nutriplant's gross banking indebtedness fell R$2.5 million in the first half of 2016, to reach R$12.4 million at June 30, 2016 from R$14.9 million at December 31, 2015. This reduction reflects the Company's intention to continuously seek to achieve higher liquidity and lower dependence on third parties' funding for working capital financing, as well as to reduce its indebtedness level.

CAPITAL MARKETS

Nutriplant makes up a handful of companies offering its investors the benefit of income tax exemption for gains arising from appreciation of its shares (NUTR3), as provided for by Provisional Decree 651, published on July 10, 2014, as it meets all requirements set forth in Article 16 thereto. The Company's Management understands that this measure has boosted the demand for its shares and stimulated the growth of Brazilian small and middle-market companies in capital markets.

With its shares listed for eight years on BOVESPA MAIS, Nutriplant had an outstanding increase in its shareholding base, by diversifying the portfolio of investors, from 120 shareholders in June 2014 to 306 shareholders in June 2016. The Company`s shares closed the first half of 2016 priced at R$15.00 per share.

At June 30, 2016, the Company's ownership interest is as follows:

Shareholders	Common shares (ON)	Ownership interest (%)
Controlling members Market	97,420 30,524	76.1% 23.9%
Total shares	127,944	100.0%

Nutriplant continues to work to increase the liquidity of its shares, in order to, if required and whenever Management deems convenient, increase its capitalization level and access the capital market again. The Company will continue to focus on its mission to create distinguished products to maximize the productivity of its clients' activities through the development of the agribusiness technology. Nutriplant's management members will proceed with their efforts to improve the Company's operational efficiency, by adjusting its capital structure and seeking better margins in distinguished products.

RICARDO PANSA

Chief Executive Officer and Investor Relations Officer