UPDATE 1-Hypermarcas' net sinks but sales surge; shares up

* Financial expenses drag profit down in Q2

* Net revenue surges 79 pct on acquisitions

* EBITDA margin plunges

* Shares rally 3.4 pct to 23 reais, a one-month high (Recasts; adds details on earnings, comments, share prices in paragraphs 1, 3, 5-9)

SAO PAULO, Aug 9 (Reuters) - Hypermarcas (HYPE3.SA), the largest Brazilian maker of nondiscretionary consumer goods, said net income sank 60 percent in the second quarter as a takeover spree drove up expenses.

The Sao Paulo-based company, the product of more than 30 acquisitions since 2000, reported a profit of 53.3 million reais ($30 million) on Sunday, compared with 132 million reais a year earlier, according to a securities filing.

Organic growth -- or business expansion at units existing for more than one year -- was 18 percent, beating estimates by analysts at Citigroup and other banks. Segments that presented the fastest rates of growth were sales of beauty care and pharmaceutical goods, precisely the area where the company has grown more through takeovers.

Hypermarcas said late on Friday that it agreed to buy diaper maker Mabesa do Brasil and its subsidiaries for 350 million reais.

"We believe that this was another good acquisition ... pretty much in line with the company's previous deals," Citigroup analyst Carlos Albano wrote in a note to clients on Monday.

Hypermarcas' shares gained as much as 3.4 percent to 23 reais, the highest since July 6. The stock has gained 15 percent this year.

DEBT BURDEN

Hypermarcas said earnings before interest, tax, depreciation and amortization, a gauge of operational profitability known as EBITDA, rose 33 percent to 154.5 million reais.

EBITDA fell to 20.4 percent of total revenue, compared with 27.4 percent in the prior year.

Rising debt payments led the company to post a deficit in its nonoperating balance of 44.1 million reais, reversing a surplus of 47.8 million reais from a year ago. The company took on more debt to buy rivals in the pharmaceutical and beauty-care industries over the past year.

Hypermarcas' aggressive acquisitions strategy fueled an increase in net debt higher to 1.25 billion reais, equivalent to twice EBITDA for the 12 months that ended on June 30.

Last quarter, the company raised 1.23 billion reais in a share offering, but second-quarter numbers did not include the debt portion of the Mabesa takeover.

"The company did not present a long-term plan so far that would allow its growth at current levels as it has been growing beyond its cash generation capabilities and has been constantly making use of capital increases to finance it," a report by Banif Ixe said on Monday.

Rising financial expenses offset a 79 percent surge in net revenue to 758 million reais over the year-earlier period.

The company plans to host an afternoon conference call with analysts (1800 GMT) to discuss second-quarter results. (Reporting by Guillermo Parra-Bernal; Editing by Lisa Von Ahn and Maureen Bavdek)