Hypera (HYPE3) Q1 2026 earnings summary

Executive summary

• Achieved 9.5% sell-out growth in Q1 2026, outpacing the market by 1.5 percentage points, driven by new product launches and enhanced marketing investments.

• Net revenue reached R$2,017.8 million, up 87% year-over-year, reflecting working-capital optimization and strong retail performance.

• Successfully completed a R$1.5 billion capital increase, strengthening the balance sheet, liquidity, and investment capacity.

• Logistics efficiency improved, with OTIF up 12 percentage points and order cycle time down 14% year-over-year.

• Net income from continuing operations reached R$345.7 million, reversing a loss in 1Q25.

Financial highlights

• Net revenue: R$2,017.8 million in Q1 2026, an 86.7% increase year-over-year.

• EBITDA: R$586.5 million (29.1% margin), up R$735 million from 1Q25.

• Gross margin: 60%, up 1,280 basis points, impacted by plant idleness due to collective vacations.

• Operating cash flow: R$521 million, nearly 90% of EBITDA.

• Free cash flow after investments: R$368 million, up 5.6% year-over-year.

Outlook and guidance

• Expectation for sell-out growth to remain at the upper end of the anticipated range, with positive trends continuing into April.

• New launches projected to contribute up to 2.63 percentage points to sell-out growth in 2026, with expansion into diabetes and testosterone markets.

• Anticipate normalization of plant idleness and further inventory reductions starting in Q2.

• Improved capital structure and deleveraging enhance resilience against credit market volatility, especially in an election year.