This week is being decisive with the disclosure of the results of the companies listed on the stock exchange and, today, we bring the main highlights of the day with Suzano, Gerdau, Ambev, Pão de Açúcar, XP and BRF.
Suzano (photo) released a strong result in the first quarter of 2022, with a growth of 10% in revenues, compared to the same period of the previous year, reaching 9.7 billion reais driven by the international price of pulp, traded in $750 a ton house. This allowed the company to generate strong operating cash flow of 3.9 billion reais. Profit was 10.3 billion reais, driven by gains from exchange rate variation in the period. The company’s net debt is 2.1 times its operating cash generation, a level considered controlled and which has been reduced in recent years. Suzano also announced the repurchase of 2.8% of the outstanding shares.
Gerdau had revenues of 20 billion reais in the quarter, 24% above the first quarter of 2021. Operating cash generation was 5.8 billion reais, 36% above the previous year. Finally, its profit was 2.9 billion reais, 19% higher than in 1Q21. The company is expected to be one of the largest dividend payers on the Brazilian stock exchange in 2022.
Another company that came with a positive result was Ambev. The company presented revenue of 18 billion reais, 12% above the first quarter of 2021. Net income reached 3.5 billion reais, a growth of 29% year-on-year. The company was able to increase prices, particularly in the South American region, which boosted results as well as reduced financial expenses.
Grupo Pão de Açúcar’s results were neutral, with the company ending the sale of Extra stores to Assaí. The company reported a profit of 1.4 billion reais this quarter, driven mainly by the sale of discontinued businesses. The company’s revenue was 11 billion reais, 2.5% up on 2021. In addition, the internal restructuring is in the final stage amid rumors that its former controller, Abílio de Diniz, could repurchase control of the company .
XP had a result lower than expected by the market, compared to the fourth quarter of 2021. The company’s profit of 986 million reais was 9% below the last quarter of 2021. As it negotiates with an expectation of growth and at a price of 19 times its profit for the last twelve months, a bad result ends up impacting the stock price.
Brasil Foods had a very negative result and the 26% growth in costs caused the company’s gross revenue to close the quarter at 1.1 billion reais. This represents a drop of 47%, compared to the same period of the previous year, causing a loss of 1.5 billion reais – and therefore reversing a profit of 22 million in the previous year. Faced with this, the market did not forgive and the company is down 15% today.
Reading the published balance sheets, our perception is that there is a great difficulty in the growth of companies linked to the domestic market, because of a considerable increase in the financial expenses of those who contract financing in reais. Meanwhile, exporters with cheaper dollar-denominated debt, with commodities on the rise, are standing out positively.
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