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Progress in synergies and 96% increase in Net Income
Initiatives in the operations mitigated impacts arising from the drop in volumes
Revenues of R$2.8 billion in 1Q23 (+19% vs. 1Q22), including the result of MWM Tupy do Brasil (“MWM”), of approximately R$550 million. The one-off impact from the change in the engine emission technology (Proconve P8 / Euro 6) together with the performance of economic indicators led to lower sales than those reported in 2022 (-7% in the volume of structural components).
Gross Profit of R$505 million (+23%) with a margin of 18.0% vs. 17.3% in 1Q22. Synergies obtained and cost reduction initiatives mitigated the effect of lower volumes and MWM result, which has margins lower than Tupy’s.
Adjusted EBITDA: R$315 million (+1% 1Q22), with a margin of 11.2% on net revenue, reflecting full results from MWM. Progress in synergies, offsetting the lower dilution of fixed costs resulting from the drop in volumes produced, higher freight prices (passed to prices), and restructuring expenses amounting R$ 14 million.
Net Income: R$145 million in 1Q23, up by 96% over 1Q22.
Operational cash generation: Consumption of R$132 million in 1Q23, due to seasonality, compared to the R$244 million reported in 1Q22 (representing improvement of 46% in the indicator).
Announcement of new contracts: (i) supply of blocks and cylinder heads, including casting, machining, and pre-assembly, for Class 8 trucks for the North American market and pickups in South America, with expected additional revenue of R$650 million at maturity, and (ii) new business: supply of cylinder heads for hydrogen-powered combustion engines, as a result of Research & Development initiatives.
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