São Paulo – Brazilian grain silo manufacturer Kepler Weber exports grew 70% in Q1 this year in comparison to the same period last year, according to the period’s balance released this Monday night (13th) by the company, after the closing of the markets. In a result conference this Tuesday (14th), executive vice president of Kepler Weber, Olivier Colas, said the exports grew due to the diversification of buying markets.
Colas also said the company is betting to expand the sales to countries in Africa, South America and East Europe. “We have good perspectives also in Africa, especially in East Africa and we keep good perspectives in South America”, he said. He, however, observed that the company does not expect to close large deals in Argentina and Venezuela as the current economic politics of these countries do not encourage investments in stockpiling.
Results
In Q1 this year, the net revenue of Kepler Weber grew 45% and reached R$ 173.2 million (around US$ 78.07 million). The net profit, R$ 23.8 million (or US$ 10.7 million), was 176.4% higher than the results posted in Q1 2013. Out of the generated revenue, R$ 127.9 million (US$57.65 million) came from grain storage products.
The exports accounted for 11.67% of the revenue and amounted to R$ 20.2 million (US$9.1 million). In Q1 last year, the revenue from exports was R$ 11.9 million (US$5.36 million) and accounted for 10% of the company’s earnings. In volume, the expansion of foreign sales was 20%. Between January and March this year, a total of 19,700 tonnes were exported. In the same period in 2013, 16,400 tonnes had been exported.
Among the reasons for the business expansion he mentioned the expected grain crop for this year, which is 190 million tonnes, credit lines at 3.5% interest rates offered by Brazilian Development Bank and Bank of Brazil for the construction and expansion of warehouses and the deficit of grain storage, which boosts investments in silos.
By the end of the trading day this Tuesday(13th), the company’s shares were selling for R$ R$ 38.60 (US$17.39) on the São Paulo Stock Exchange (Bovespa), up 8.12%. Bovespa closed the trading day down 0.27%.
*Translated by Rodrigo Mendonça
