Nutriplant Industria e Comercio : 1Q18 Results

NUTRIPLANT INDÚSTRIA E COMÉRCIO S.A.

C.N.P.J. 51.128.999/0001-90

COMMENTS ON RESULTS FOR THE QUARTER ENDED MARCH 31, 2018

Nutriplant Indústria e Comércio S.A. (NUTR3) discloses the operating results for the first quarter ended March 2018, with the following highlights:

•  A positive EBITDA of R$631 thousand in the 1Q18, an improvement in relation to the negative amount of R$569 thousand recorded in the same period of the previous year;

•  Net revenue reached R$10.0 million in the quarter ended March 31, 2018, up 54.4% from the amount of R$6.5 million recorded in the same period of 2017;

•  Gross profit reached R$1.9 million in the 1Q18, up 19.4% compared to the gross profit of R$1.7 million in the 1Q17, with a 25.8% margin;

•  General, administrative and selling expenses totaled R$1.7 million in the 1Q18, down 31.6% from the amount of R$2.5 million in the same period of 2017;

•  Net loss of R$0.8 million in the 1Q18, higher when compared to the net loss of R$0.1 million recorded in the 1Q17;

•  The request for confirmation of the Company's Out-of-Court Reorganization Plan, filed on October 2, 2017, is being reviewed by the judge and so far is still pending confirmation by the 5th Civil Court of the Judicial District of Barueri, state of São Paulo.

ECONOMIC-FINANCIAL PERFORMANCE

In the 1Q18, the Company recorded positive EBITDA of R$631 thousand, a significant recovery compared to the negative amount of R$569 thousand in the 1Q17.

The key factors positively impacting the Company's EBITDA were the increase in revenue and falling operating expenses, mainly the allowance for loan losses recorded in the 1Q17 in the amount of R$732 thousand.

In the quarter ended March 31, 2018, the Company's net revenue totaled R$10.0 million, up 54.4% from the R$6.5 million recorded for the same period of 2017. This increase was mainly driven by the sale of products aimed at the domestic market. Gross profit reached R$1.9 million in the 1Q18, up 16.4% from the amount of R$17.7 million recorded in the first quarter of 2017. Gross margin fell to 19.4% in the 1Q18 from 25.8% in the 1Q17.

General, administrative and selling expenses totaled R$1.7 million in the 1Q18, down 31.6% from the amount of R$2.5 million in the same period of 2017. The key factor driving these decreased expenses was the reduction to zero in the allowance for loan losses, which totaled R$0.7 million in the 1Q17. Manufacturing overhead expenses totaled R$1.5 million in the 1Q18 (11.9% on NR), up 32.5% from the amount of R$1.1 million recorded in the 1Q17 (13.4% on NR).

Costs with products sold in the quarter from January to March 2018 amounted to R$8.1 million, which represented 80.6% on the net revenue amount, up 67.6% from the R$4.8 million spent in the same period of the previous year, which represented 74.2% on net revenue. This higher ratio of cost of products sold to net revenue was driven by a change in the mix of sales of the Company`s key products.

The net result of the 1Q18 was a net loss of R$0.8 million, an improvement when compared to the net loss of R$0.1 million recorded in the 1Q17. The Company`s financial result was the key factor that led, in the 1Q18, to a loss higher than the one recorded in the 1Q17. In the 1Q17, the financial result was impacted by the amount of R$1.3 million of foreign exchange variation income, mostly associated with long-term liabilities denominated in U.S. dollars due to foreign suppliers, but with no impact on the cash, accordingly. In the 1Q18, the Company recorded R$0.04 million in foreign exchange variation expenses.

Consolidated Financial Highlights (R$ 000) 1Q17 % NR	1Q18 % NR	Δ % 1Q17- 1Q18
Gross revenue 8.225 Net revenue 6.483 100,0% Cost of products sold -4.811 -74,2% Gross profit 1.672 25,8% General, administrative and selling expenses -2.549 -39,3% Other income (expenses) 135 2,1% EBITDA -569 -8,8% Financial result 530 8,2% Net income /(loss) -133 -2,1%	12.314 10.008 100,0% -8.062 -80,6% 1.946 19,4% -1.744 -17,4% 271 2,7% 631 6,3% -1.257 -12,6% -753 -7,5%	49,7% 54,4% 67,6% 16,4% -31,6% 100,7% -210,9% -337,2% 466,2%

BANKING INDEBTEDNESS

Nutriplant's net financial result recorded a significant reversal of trend in the 1Q18, from a positive R$0.5 million to a negative R$1.3 million in the 1Q18. This amount is composed of net interest, foreign exchange variation on assets and liabilities in foreign currencies, discounts granted, and adjustments to present value expenses, among others. In the 1Q17, the financial result was impacted by the amount of R$1.3 million of foreign exchange variation income (expenses of R$0.04 million in the 1Q18), mostly associated with long-term liabilities denominated in US dollars due to foreign suppliers, but with no impact on cash, accordingly.

The Company`s net banking indebtedness fell slightly by R$0.3 million in the 1Q18, reaching R$12.7 million at March 31, 2018 from R$13.0 million at December 31, 2017. This reduction reflects the Company's intention to continuously seek to achieve higher liquidity and lower dependence on third parties' funding for working capital financing, as well as to reduce its indebtedness level.

CAPITAL MARKETS

Nutriplant makes up a handful of companies offering its investors the benefit of income tax exemption for gains arising from its shares (NUTR3) appreciation, as provided for by

Provisional Decree 641, published on July 10, 2014, as it meets all requirements set forth in Article 16 thereto. The Company's Management understands that this measure may boost the demand for its shares and stimulate the growth of Brazilian small and middle-market companies in capital markets.

In the first quarter of 2018, Nutriplant reached the Minimum Float, fully meeting the Bovespa Mais Regulation requirement.

At March 31, 2018, the Company's ownership interest is as follows:

Shareholders	Common shares	Ownership Interest
Controlling members Market	95,820 32,124	74.9% 25.1%
Total shares	127,944	100.0%

OUT-OF-COURT REORGANIZATION PLAN

On October 2, 2017, the Company filed a request for Out-of-Court Reorganization at the Judicial District of Barueri, state of São Paulo (SP), and on October 18, 2017 the Out-of-Court Reorganization Plan was ratified at its Extraordinary Shareholders` Meeting, with the favorable vote of over 60% of creditors subject to the Out-of-Court Reorganization case.Creditors' acceptance statements were signed by creditors representing over 60% of total credits subject to the Out-of-Court Reorganization case.The plan is still pending confirmation by the Judge so far.

Conditioned on this confirmation, the Company understands that its social function and the boost it gives to the economic activity will be preserved. It also believes that the out-of-court reorganization will meet the interests of both creditors and shareholders in an organized way, therefore ensuring operational security and the commitment to providing clients with quality services and products that have always been recognized by the market.

Nutriplant will continue to focus on its mission to create distinguished products to maximize the productivity of its clients' activities through the development of agribusiness technology, proceeding with its efforts to improve operational efficiency, by adjusting its capital structure, seeking to expand distribution channels, and operating more strictly in credit analysis and granting, aiming at growing with focus on markets and clients with lower credit risk. The Company also seeks more liquidity and less dependence on funding from third parties to finance working capital, as it expects that its own growth will keep pace with the increase in production, efficiency, and profitability of the Brazilian agribusiness. In addition to these actions, it will proceed with the strategy to reduce spending, whose limits are included in the annual budgetary planning, and to control new investments.

RICARDO PANSA

Chief Executive Officer and Investor Relations Officer