| Storage

Kepler Weber presents 1Q16 results

Company demonstrates good results after having business diversification as a strategy, showing growth of 227% in exports and 56% in its Replacement & Services line

16.05.2016 | 20:59 (UTC -3)

Karina Xavier

According to the 1Q16 results of Kepler Weber (BMF&Bovespa: KEPL3), released this Friday, May 13, after the market closed, net revenue increased 7,3%, rising from R$107,9 million, presented in the 1Q15, to R$115,8 million. Gross profit reached R$ 9,8 million, growing 225,1%, compared to R$ 3 million in the same period of 2015. However, as a result of the drop in revenue and the low liquidity of the order book, it recorded net loss of R$5,7 million. EBITDA was negative R$4,8 million, with a negative margin of 4,2%.

“In line with 2015, Kepler Weber believes that 2016 will be characterized by a year of adversity and the search for a balance point in the grain storage market. The first months of the year presented a good level of prices, however, the worsening of the political-economic scenario and the credit restriction in Brazil, caused customers in the storage segment to hold back their investments in the domestic market, thus reducing new orders. ”, explains Olivier Colas, VP and director of Institutional Relations at Kepler Weber.

Adjustments were adopted by the company to adapt Kepler Weber to the new market reality, establishing as its main objective to recover historical margin levels. To achieve this, revenue sources in the company's other segments were diversified and strengthened.

The decision is based on the fact that sectors such as Exports, Parts Replacement & Services and Solid Bulk Handling, present good business opportunities and are less prone to the negative effects of economic, fiscal and monetary adjustments.

As a result, exports showed significant growth of 227,1%, recording R$25,9 million in net revenue in 1Q16 compared to R$7,9 million in 1Q15. The Parts & Services line increased 56,8%, R$8 million in 1Q16 against R$5,1 million in the first quarter of the previous year.

Investments in the modernization and maintenance of the company's industrial park remain ongoing. R$5,4 million were invested in the period in search of productivity and optimization of manufacturing processes, in addition to improvements and continuity of projects in product innovation, automation and technology.