Tupy reaches a record revenue of R$1 billion in the first quarter


June 13, 2018

Tupy reaches a record revenue of R$1 billion in the first quarter

This result is due to the growth in demand for vehicles and equipment related to cargo transport, infrastructure and agriculture in Brazil and abroad

Joinville, May 2018 – Accompanying the growth registered in the second half of 2017, Tupy’s results for the first quarter of 2018 indicate the excellent moment that the company is going through. In the first quarter of the year, revenue grew 23.9%, which for the first time in the company’s 80 years exceeded the R$ 1 billion mark in a single quarter.

The adjusted EBITDA grew at the same rate, despite the increase of about 22% in the cost of raw materials – a result achieved thanks to efficiency gains in the operation and improvement of the product mix. “This inflation in the cost of raw materials is an indicator of the increase of the economic activity, which signals growth for the company, with increased demand for our products,” says Fernando de Rizzo, president of Tupy.

Profit, in turn, increased by 20.6% in relation to 1Q17, reaching R$ 56.9 million, with a margin of 5.4%.

The physical volume of sales totaled 150.8 thousand tons, an increase of 11.6% comparing to the previous year. “The solid numbers for the first quarter are important for confirming our strategy to focus on solutions for the transport, infrastructure and agriculture sectors,” says Rizzo. “So, while we were well positioned to take advantage of the economic recovery in Brazil, in the foreign market, we managed to capture the growth of the global economy and the strong demand for machinery and equipment for important segments such as construction, mining and oil and gas, for example,” he concludes.

Growth in and out of Brazil

Revenues in the domestic market grew by 30.4%, while revenues from commercial vehicle applications that increased by 73.5% compared to the same period of the previous year, due to the increase in the manufacturing of trucks and engines in Brazil.

There was 24.1% growth in the foreign market, giving particular attention to the 42.4% increase in revenues from off-road applications, which is related to the overall growth of the economy and a consequent increase in the demand for capital goods.

1Q17 (millions) 1T18 Variation
Revenue (total) R$ 855 million R$ 1.05 billion 23.9%
National Market Revenue R$ 142.9 million R$ 185.1 million 30.4%
Foreign Market Revenue R$ 713.1 million R$ 874 million 22.6%
Adjusted EBITDA R$ 119.6 million R$ 148.2 million 23.9%
Adjusted EBITDA Margin 14.0% 14.0%
Net Profit R$ 47.1 million R$ 56.9 million 20.6%

North America remains the main player in sales outside Brazil, accounting for 64% of the company’s revenues (28% higher than the first quarter of 2017). South and Central America represented 17.9% and Europe represented 12%. The remaining 6.1% came from Asia, Africa and Oceania.

Growth with financial discipline

“Another significant point was our ability to meet the increased demand, even with the foundry activities suspended at our plant in Mauá (SP). These achievements are the result of management that aims at operational efficiency, focused on financial discipline and capital allocation,” says Rizzo.

The company’s working capital is also going through a good moment. Despite the strong sales growth, we have noted a 10-day improvement in the cash conversion cycle compared to the first quarter of 2017.

Shareholders Compensation

With these results, Tupy announced the payment of R$ 37.5 million in dividends (interest on capital) to its shareholders, the first installment out of a total of R$ 150 million that will be distributed by the Company in 2018.


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