By Brazil Stock Guide – Hypera Pharma (B3: HYPE3) delivered a strong earnings recovery in the third quarter of 2025, reporting net income of R$453.9 million, up 22.6% from a year earlier, and net revenue of R$2.23 billion, an increase of 16.3%. The EBITDA margin reached 34%, returning to the level seen before the company’s working-capital optimization process. The performance reflects faster pharmaceutical retail sell-out growth, up 8.3%, outpacing the market’s 6.4%, and the full benefit of the restructuring completed in the previous quarter, which cut receivable days from 126 to 58.
The company posted R$853.6 million in operating cash flow, its highest ever for a single quarter, while reducing working-capital investments to 30% of annualized net revenue, from 54% a year earlier. The gains in efficiency lowered net debt to R$7.27 billion, or 2.4× annualized EBITDA. Hypera also completed a R$1 billion, five-year debenture issuance at a record-low spread of CDI + 0.75%, used to redeem higher-cost notes and extend maturities.
“The combination of sell-out growth and record cash generation demonstrates the structural gains achieved after the capital-efficiency cycle,” the company said in its earnings release. Stronger sales in flu, pain relief, gastroenterology, cardiology, and skincare categories were fueled by recent product launches and higher digital-media and point-of-sale investments.
With margins back to pre-optimization levels, Hypera reaffirmed its focus on sustainable growth and governance improvement, updating board committees and approving R$185.1 million in interest on equity (R$0.29 per share). Supported by a resilient portfolio of leading OTC and prescription brands and a robust innovation pipeline, the company is well positioned to capture Brazil’s next phase of pharmaceutical expansion — balancing scale, discipline, and cash efficiency.