<span id="midArticle_start"/> (Reuters) - Brazil's Hypermarcas SA plans to raise prices in July on its consumer goodslineup for the second time this year, after gauging the impactof a stronger dollar on its costs, Chief Executive ClaudioBergamo said on Monday.
<span id="midArticle_0"/>Higher prices will keep pressure on consumer inflation,which rose over 8 percent in the 12 months through March to itshighest in over 11 years, and test the ability of Hypermarcas tokeep gaining market share amid slumping household demand.
<span id="midArticle_1"/>Brazil's biggest generic drugmaker already raised prices forits hygiene and beauty care portfolio by an average of 8 percentthis month, but Bergamo told analysts on a call that the pricehike had not factored in the current exchange rate.
<span id="midArticle_2"/>The Brazilian currency tumbled around 17 percentagainst the U.S. dollar in the first quarter to a nearly 12-yearlow, but has rebounded almost 10 percent this month.
<span id="midArticle_3"/>"We need to see where the exchange rate stabilizes," Bergamosaid on the conference call to discuss first-quarter earnings.
<span id="midArticle_4"/>"We need to wait a bit, but over the course of the secondquarter we'll have better visibility. Then we'll decide on thenext price increase starting in July," he added.
<span id="midArticle_5"/>Bergamo also reaffirmed that Hypermarcas would pass along toconsumers a higher industrial tax rate, known as IPI, on somecosmetics, which the government announced earlier this year inan attempt to close a federal budget gap.
<span id="midArticle_6"/>"The whole (cosmetics) industry will entirely pass on theIPI increase to the price of products," Bergamo said, addingthat its market-leading lineup of nail polishes could actuallywin market share compared to more expensive rivals.
<span id="midArticle_7"/>On Friday, Hypermarcas reported that first-quarter profitwas little changed from a year earlier, as higher sales frommore aggressive pricing were offset by higher costs. (Reporting by Luciana Bruno and Brad Haynes; Editing by ChrisReese)
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<span id="midArticle_0"/>Higher prices will keep pressure on consumer inflation,which rose over 8 percent in the 12 months through March to itshighest in over 11 years, and test the ability of Hypermarcas tokeep gaining market share amid slumping household demand.
<span id="midArticle_1"/>Brazil's biggest generic drugmaker already raised prices forits hygiene and beauty care portfolio by an average of 8 percentthis month, but Bergamo told analysts on a call that the pricehike had not factored in the current exchange rate.
<span id="midArticle_2"/>The Brazilian currency tumbled around 17 percentagainst the U.S. dollar in the first quarter to a nearly 12-yearlow, but has rebounded almost 10 percent this month.
<span id="midArticle_3"/>"We need to see where the exchange rate stabilizes," Bergamosaid on the conference call to discuss first-quarter earnings.
<span id="midArticle_4"/>"We need to wait a bit, but over the course of the secondquarter we'll have better visibility. Then we'll decide on thenext price increase starting in July," he added.
<span id="midArticle_5"/>Bergamo also reaffirmed that Hypermarcas would pass along toconsumers a higher industrial tax rate, known as IPI, on somecosmetics, which the government announced earlier this year inan attempt to close a federal budget gap.
<span id="midArticle_6"/>"The whole (cosmetics) industry will entirely pass on theIPI increase to the price of products," Bergamo said, addingthat its market-leading lineup of nail polishes could actuallywin market share compared to more expensive rivals.
<span id="midArticle_7"/>On Friday, Hypermarcas reported that first-quarter profitwas little changed from a year earlier, as higher sales frommore aggressive pricing were offset by higher costs. (Reporting by Luciana Bruno and Brad Haynes; Editing by ChrisReese)
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