…

Financial
Performance
Relatório Anual
2016

Sales

Ipiranga’s sales volume recorded a year-over-year decline of 9%. Despite effective growth of 2% in the Brazilian vehicle fleet, fuel sales volume for light vehicles (Otto cycle) declined by 9%, a reflection of the economic scenario, worsening rates of unemployment and a deterioration in the ratio of fuel prices to household incomes. Diesel sales volume also registered a 9% reduction, again in line with overall economic weakness.

Sales volume at Oxiteno was 2% higher in 2016, the result of a 17% expansion in commodities - reflecting the search for more efficient use of capacity and the dilution of plant costs, above all in the first half of 2016. These measures were adopted to offset the 1% decline in specialty chemicals, principally due to a weaker economy in Brazil.

Ultragaz posted a 4% increase in sales volume in 2016 with 3% growth in the bottled segment - the result of investments in new resellers - and 6% in the bulk business due to investments in the capture of new clients.

Ultracargo’s total average storage increased by 3%, above all due to increased fuel handling activities at the Suape and Aratu terminals, mitigating the impacts of the partial interruption in 2015 at Ultracargo’s Santos terminal due to the fire in April of that year. Excluding the Santos operations, port-handling activity was up by 8%.

Extrafarma ended 2016 with 315 stores, an increase of 24% (61 stores) compared to 2015. During the year, Extrafarma opened 71 new stores and closing ten.

Consistent Results

Ultra continued to advance and grow in 2016 in line with its strategic plan and consistent management, ensuring the Company’s financial soundness, profitability and longevity. Despite the macroeconomic conditions, Ultra, together with its various business segments, benefited from a strategy of differentiation combined with resilience and extensive operational scale to produce one more year of positive results.

Net revenues from sales and services were R$ 77,353 million, a 2% increase in relation to 2015. Improved revenue from the businesses contributed to this performance with the exception of Oxiteno, more seriously affected by the challenging conditions.

Consolidated EBITDA amounted to R$ 4.2 billion, a growth of 7%. Net earnings were R$ 1,571 million, a year-over-year increase of 4% due to the improvement in EBITDA between comparative periods, partially offset by higher financial expenses and amortization and depreciation costs, a reflection of investments made during the course of the period.

EBITDA (R$ million)

Debt

Ultra ended fiscal year 2016 with gross debt of R$ 11,417 million and gross cash position of R$ 5,702 million, translating into net debt of R$ 5,715 million, an increase of R$ 787 million compared with 2015. During the period, the Company issued bonds worth US$ 750 million, thereby extending the debt profile. Net debt at the end of 2016 corresponded to 1.36x EBITDA for the last 12 months against 1.24x at the end of the preceding year.

Comparative performance (R$ million)

20152016Variation (%)
Net revenues from sales and services75,65577,3532
Costs of products and services sold68,93470,3432
Gross profit6,7227,0104
General and administrative expenses with sales and marketing3,8384,0977
Other operating results, net51199-
Result from sale of assets276-
Operating income2,9623,1065
EBITDA3,9534,2177
Depreciation and amortization1,0031,10410
Equity income117-

Capital Markets

In 2016, Ultra’s shares traded on the BM&FBOVESPA reported an appreciation of 13%. Ultra also declared dividends of R$ 907 million in 2016, 4% higher than 2015. This amount represents a dividend yield of 2.5% on the average share price during the period.

Check out further details on the financial performance for 2016 www.ultra.com.br/ri.