After officially announcing the public offering on July 7 the company yesterday said that its offer may be raised to a total of 7.41 million shares if underwriters also exercise their right to sell shares.
In the past year the company’s share price has increased more than 35 percent, rising from around BRL17 ($8.77) in mid-July 2008, to the current trading price of BRL27.40.
Kicking off the next round of investment
It has initiated the share offering to implement the next round of investment, which is likely to see the company expanding further in the domestic market as well as international markets.
In Latin America the company is already present in Argentina, Chile and Peru and is currently expanding into Mexico, Venezuela and Colombia, while the company also has a small retail presence in France and the US.
All of these markets are likely to see further investment in the future as revenues from international markets still represent less than 10 percent of total sales.
In the past year the company’s share price has increased more than 35 percent, rising from around BRL17, to the current trading price of BRL27.40.
Brazilian economy holds up in face of downturn
Benefiting from the fact that the Brazilian economy is riding out the global economic downturn better than the most, the company’s consolidated net revenue in 2008 rose 17.7 percent to BRL3.62bn, a performance that has continued into Q1 when net revenues rose 26.5 percent to BRL844.7m.
Only this week the Brazilian Association of the Cosmetic, Toiletry and Fragrance Industry (ABIHPEC) released figures showing that industry growth in Brazil has exceeded predictions made at the beginning of the year, meaning the value of the market in 2009 is likely to be 11 per cent higher than 2008.
ABIHPEC’s figures show that industry sales rose by 18 per cent between January and June 2009, without discounting for inflation.
This performance builds on an industry valued at BRL 21.7bn in ex-factory sales for 2008, which was already 10.6 per cent up on the figure for 2007.