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Strong operating cash generation,
capture of synergies and growth of margins
Revenues: R$3.0 billion in 3Q23 (+10% vs. 3Q22), including the result of MWM Tupy do Brasil (“MWM”), of approximately R$597 million. Impact of the 7% appreciation in the BRL against the USD, with 68% of the Company’s revenues in the period in foreign currency. Drop in the manufacture of heavy vehicles in Brazil, due to the change in the engine emission technology (Proconve P8 / Euro 6) and the performance of economic indicators, resulting in lower sales compared to the same period of 2022 (-7% in the physical volume of structural components).
Operating Cash Flow: generation of R$359 million in 3Q23, an increase of 56% year on year, due to efficiency gains and working capital reduction initiatives.
Adjusted EBITDA of R$367 million, the highest quarterly figure in the Company’s history, with a margin of 12.3% (vs. 11.2% in 1H23, which already included the result of MWM). CVM EBITDA reached R$350 million (+16% vs. 3Q22), with a margin of 11.8%. The capture of synergies, the initiatives to reduce costs and expenses, and the efficiency gains mitigated the impact of the appreciation in the BRL (7%) and the Mexican Peso (16%) – the currency which represents about 20% of the Company’s total costs – the drop in volumes, and the inflation of services and labor.
Net Income: R$150 million (vs. R$192 million in 3Q22), corresponding to 5% of net revenue. The year-on-year comparison was impacted, among other factors, by increased financial expenses due to the issue of debentures, for the acquisition of MWM, totaling R$1 billion, in September 2022, the exchange rate effect on the tax base of assets and liabilities located in Mexico (non-cash effect), and the recognition of tax credits with a positive impact of R$22 million in 3Q22.
To access the Earnings Release, click here.