9666db24-0cf9-4dec-9bb9-9cadbf602a0c.pdf



NUTRIPLANT INDÚSTRIA E COMÉRCIO S.A.


RESULTS FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 2015


Nutriplant Indústria e Comércio S.A. (NUTR3) discloses the operating income for the nine-month period ended in September 2015, with the following highlights:


  • Gross profit reached R$5.4 million in the nine-month period of 2015, which represented a 19.7% margin, thus exceeding the 17.8% margin recorded in the same period of 2014;

  • Net banking indebtedness decreased by R$7.4 million in nine months, from R$21.8 million in December 2014 to R$14.3 million in September 2015;

  • Positive EBITDA reached R$1.1 million in the nine-month period of 2015, which represents a 3.9% margin, lower than the 9.9% margin recorded in the same period of 2014;

  • General, administrative and selling expenses totaled R$6.0 million in the nine-month period of 2015, falling 7.7% from the amount of R$6.5 million expensed in the same period of 2014;

  • Net revenue reached R$27.3 million in the nine-month period of 2015, 22.4% lower than the amount of R$35.3 million recorded in the same period of 2014;


ECONOMIC-FINANCIAL PERFORMANCE


EBITDA recorded in the nine-month period of 2015 was positive R$1.1 million, lower than the amount of R$3.5 million recorded in the same period of the previous year. In the nine-month period of 2015, Nutriplant recorded a net loss of R$17.7 million, a significant increase when compared to the net loss of R$2.9 million in the same period of 2014. The main factor adversely impacting this net result was the R$17.5 million loss from foreign exchange variations, basically driven by liabilities due in US dollars to foreign suppliers. Taking into account that these payments mature up to 2020, and that most of these amounts are concentrated on installments maturing in the long term, the foreign exchange variations recorded in this period will only adversely impact the Company's cash in these aforementioned periods.


Cost of products sold recorded in the first nine months of 2015 amounted to R$22.0 million, lower by 24.2% when compared to R$29.9 million recorded in the same period of the previous year. The ratio of costs with products sold and net revenue in the nine-month period of 2015 was 80.3%, lower than the 82.2% for the same period of 2014, which led to a recovered gross margin, to 19.7% in the nine-month period of 2015 from 17.8% in the same period of 2014. This increased margin was due to the higher share of distinguished products in the company's mix of products sold in the period. Manufacturing overhead expenses totaled R$4.7 million in the nine-month period of 2015, down 7.6% from the amount of R$5.1 million recorded in the same period of 2014. The Company's focus is still on increasing its share in the special fertilizers segment, which margins are higher than average.


General, administrative and selling expenses totaled R$6.0 million, accounting for 22.0% of the net revenue recorded in the first nine months of 2015, falling 7.7% from the amount of R$6.5 million expensed in the same period of 2014. These reductions arise from Nutriplant's continuing efforts to reach profitability rates consistent with the segment in which it operates.


In the nine-month period ended September 30, 2015, Nutriplant's net revenue was R$27.3 million, 22.4% lower than the R$35.3 million recorded in the same period of 2014. This revenue dropped as a result of (i) the producer's 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.


BANKING INDEBTEDNESS


The Company's net banking indebtedness decreased by R$7.4 million in the nine-month period ended September 2015, from R$21.8 million at December 31, 2014 to R$14.3 million. This reduced indebtedness evidences the Company's continuing efforts to seek more liquidity, reduce its debt profile and minimize dependence on external funds to finance working capital.


The Company's net financial expenses recorded a significant increase, from R$6.0 million in the nine-month period of 2014 to R$18.4 million in the same period of 2015. This amount is composed of net interest, foreign exchange variation on assets and liabilities in foreign currencies, discounts granted, and adjustment to present value expenses, among others. In the nine-month period of 2015, financial income was impacted by the amount of R$17.5 million of negative foreign exchange variation, mostly with no impact on cash, as it is associated to long- term liabilities accordingly.



Consolidated Financial Highlights (R$ 000)


9M14 % NR


9M15 % NR


Δ % 9M14-9M15

Gross revenue

42,136

32,366

-23.2%

Net revenue

35,259

100.0%

27,347

100.0%

-22.4%

Cost of products sold

-28,977

-82,2%

-21,968

-80.3%

-24.2%

Gross profit

6,282

17.8%

5,379

19.7%

-14.4%

General, administrative and selling expenses

-6,524


-18.5%

-6,022


-22.0%


-7.7%

Other revenue (expense)

3,180

9.0%

1,141

4.2%

-64.1%

EBITDA

3,485

9.9%

1,069

3.9%

-69.3%

Financial result

-6,045

-17.1%

-18,418

-67.3%

204.7%

Net income (loss)

-2,915

-8,3%

-17,660

-64.6%

505.8%



CAPITAL MARKETS


The Extraordinary Shareholders' Meeting (ESM) held on August 20, 2015 approved the reverse split of Nutriplant's shares (NUTR3) in the proportion of 100 shares for 1 share. Nutriplant's shares closed September 2015 priced at R$35.00 per share.


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 641, published on July 10, 2014, as it meets all requirements set forth in Article 16 thereto. The Company's Management understands that this measure may boost the demand for its shares and stimulate the growth of Brazilian small and middle-market companies in capital markets.


Nutriplant has been working to increase the liquidity of its shares, in order to, if required and whenever the Company deems convenient, increase its capitalization and access the capital markets again.


At September 30, 2015, the Company's ownership interest is as follows:




Shareholders

Common shares (ON)

Ownership interest (%)


Controlling members Market

98,020


29,924

76.6%


23.4%

Total shares

127,944

100.0%


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 agribusiness technology, proceeding with its efforts to improve operational efficiency, by adjusting its capital structure, seeking to expand its distribution channels, and operating more strictly in credit analysis and granting, aiming at growing with focus on markets and clients with lower credit risk. Nutriplant also seeks more liquidity and less dependence on funding from third parties to finance working capital, and it expects that its own growth will keep pace with the increased production, efficiency, and profitability of the Brazilian agribusiness.


RICARDO PANSA

Chief Executive Officer and Investor Relations Officer

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