Diversification strategy across segments, adopted in recent years, generates resilience in the face of a challenging scenario. Replacement and Services, as well as Ports, experience growth.

São Paulo, August 2, 2023 – Kepler Weber (KEPL3) concluded the second quarter with a net revenue of R$ 281.2 million. Considering only the months of April, May, and June, this marked the second-best period in the company’s history, second only to the exceptional year 2022.

In a message to the Market, the company cites “resilience in the face of the challenging moment, especially for the farmers who make up the Farms segment.”

The company’s net profit in the quarter was R$ 33.4 million, 34.7% lower than the R$ 51.2 million from the previous quarter. The margin for the period was 11.9%, compared to 15.9% in the first quarter.

EBITDA, earnings before interest, taxes, depreciation, and amortization, stood at R$ 53.8 million. In the previous quarter, EBITDA had totaled R$ 77.4 million.

In the management’s message, Kepler Weber highlights some competitive differentiators such as “customer proximity, revenue diversification, cost optimization, and price and margin management.”

The ROIC of 65.7% was deemed “exemplary” by Kepler Weber, “maintaining a consistent level in this important indicator. Similarly, the company’s cash remains at a solid level of R$ 266.5 million, following the payment of dividends of R$ 77.7 million and the acquisition of 50% of Procer (R$ 50.8 million).”

Business Areas

During the second quarter, Farms reached a revenue of R$ 82.7 million, 22.9% lower than the previous quarter when it reported R$ 107.4 million. Compared to the same period last year, the segment declined by 37.3%.

“It is important to highlight that the company remained resilient and delivered important projects to producers in the states of Mato Grosso (mainly expansion of units) and new units in Goiás, Pará, and Bahia, despite the revenue reduction scenario in 2Q23,” says a section of the report to the market, which also cites the high interest rates and reduced producer remuneration due to the fall in commodities as reasons for lower revenue in this business area.

Farms represent a third of the company’s revenue and are already showing signs of improvement, according to the balance sheet. Over the last period, the company highlights having made sales to Mato Grosso, Goiás, and Piauí totaling R$ 59.9 million.