Tupy reaches record revenue in the second quarter
August 5, 2021
Net Revenue of R$1,645 million, up 7% over 1Q21.
Tupy, the Brazilian multinational company, ends the second quarter of 2021 with another record: R$1,645 million, the highest net revenue in its history. This represents a 7% growth compared to the first quarter of this year, which had previously surpassed the Company’s highest record, with R$1.5 billion. If compared to the same period last year, the increase is 155%.
Another two relevant indicators were profit, R$31 million compared to a loss of R$15 million in 1Q21, and Return on Invested Capital (ROIC) of 11.3%, compared to 6.7% in 1Q21 and 2.2% in 2Q20. The Company continues to maintain strong financial discipline, ending the period with net debt of R$772 million, a net debt to Adjusted EBITDA ratio of 0.93.
Also in the second quarter, Tupy announced the conclusion of the agreement to acquire Teksid’s iron casting business, including the plants located in Brazil and Portugal. The transaction includes assets with high potential for synergy, which enable access to new customers and markets, and the necessary flexibility to capture growth opportunities in the markets in which it operates.
In this earnings release, the Company announced the payment of Interest on Equity, in the amount of R$19.6 million, on August 26, and a payment schedule of two installments of the same amount, in November 2021 and January 2022, to be resolved in due course.
“We have been experiencing an upturn since the last quarter of 2020, but still with some challenges in raw material cost and availability and in manufacturing important inputs for our customers, which impacted this quarter’s results. On the other hand, this increase in demand for which we have prepared all operations is still on the agenda, supported by increased consumption and the need to restore inventories. By integrating with Teksid, we will increase our production capacity, which will allow us to increase the volume that follows a growth trend,” says Fernando de Rizzo, CEO of Tupy.
New projects and partnerships
Tupy’s second quarter was a period characterized by project launches and partnerships. One of them is ShiftT, a startup accelerator, one of Tupy Up’s initiatives, which aims to convert, accelerate, and scale opportunities in new segments and revamp the existing ones through innovation and digital transformation.
Tupy Tech, a structure focused on the development of disruptive R&D, has entered into a partnership with the Universidade de São Paulo (USP) to research solutions for recycling lithium-ion batteries, promoting higher rates of reuse of materials and lower emissions of greenhouse gases in the process.
Another significant partnership, recently announced, is AVL and Westport’s collaboration to develop materials, geometries and machining techniques to contribute to the efficiency of a high-performance hydrogen engine, an initiative that is part of Tupy’s strategy to decarbonize customers in the coming decades.
A Brazilian multinational company that designs and manufactures cast iron structural components with highly complex geometry and metallurgy. These engineering solutions are applied to the transportation, infrastructure, agribusiness and energy generation sectors, contributing to the quality of life of people, promoting access to health, basic sanitation, drinking water, and the production and distribution of food worldwide. The technological innovation involved in the design and manufacture of these parts has been the Company’s specialty throughout its more than 80 years of operations. The production is concentrated in the Brazilian factories located in Joinville/SC and Mauá/SP, and abroad, in the cities of Saltillo and Ramos Arizpe, Mexico. Tupy also has commercial offices in São Paulo, the USA and Germany.