KEPLER WEBER S.A. 4Q22 EARNINGS RELEASE
"Increased revenues in all segments consolidate a year of great performance for the Company"
HIGHLIGHTS
NET REVENUES amounted to R$502 million in 4Q22, up 20.4% from R$416.9 million in the same quarter of the previous year. In 2022, Net Revenues reached the historical record of R$1.8 billion, and increased by 48.1% compared to R$1.2 billion in 2021.
The ADJUSTED EBITDA amounted to R$156.7 million in 4Q22, up 32.1% from R$118.6 million in 4Q21. The adjusted EBITDA margin for the quarter was 31.2%, increasing by 2.8 percentage points relative to 4Q21. In 2022, the adjusted EBITDA amounted to R$568.2 million, up 135.6% compared to 2021. The adjusted EBITDA margin in 2022 was 31.3%, or 11.6 percentage points higher than in 2021.
The ADJUSTED NET INCOME amounted to R$107.2 million in 4Q22, with adjusted net margin of 21.4%, or
1.2 percentage point higher than 4Q21. In 2022, the adjusted Net Income was R$386.2 million, with adjusted net margin of 21.3%, or 8.2 percentage points higher than the result for 2022.
4Q22 EARNINGS RELEASE
São Paulo, February 15, 2023 - Kepler Weber S.A. (B3: KEPL3), Kepler Weber group's parent company and a leading supplier of grain storage equipment and post-harvest solutions in Latin America, is announcing its consolidated earnings for the quarter and for the year ended December 31, 2022 ("4Q22" and "12M22"). The consolidated information is prepared according to the accounting practices adopted in Brazil ("BR GAAP) and the International Financial Reporting Standards ("IFRS").
MESSAGE FROM MANAGEMENT
The sound results in all segments in 4Q22 consolidate a year of consistent performance for the Company. In addition to the substantial increase in revenues, we obtained high operating margins, which enabled us to keep the return on invested capital at very attractive levels.
The good results presented in this quarter were due to the excellence in the management of projects and the commitment of the entire organization in the search for improved operational efficiency and commercial excellence, which have enabled us to capture the opportunities presented, and take advantage of the excellent moment for the agribusiness sector and the high search for our products and services in all regions where we operate.
We should point out that the 27.0% increase in EBITDA, with a 30.1% margin and increase of 1.6 p.p. against 4Q21, represents an advancement towards increasing the level of production activity and expanding margins in our business segments, resulting from efficient operations management combined with a balanced price management with customers.
The Company continues its strategic movements to advance even more in the market. An example is the organization of the Investment Fund in Agroindustrial Production Chains ("FIAGRO"), which was created by BTG Asset and now was expanded with the arrival of the National Economic and Social Development Bank ("BNDES"), and through which up to R$300 million will be made available through 10-year financing facilities offered to Kepler Weber's customers in all segments.
This movement complements the actions for advancing in the access to the organization's market, such as the opening of new Distribution Centers, expansion of presence in agribusiness marketplace platforms, and increase and qualification of the sales force. This set of actions aims at capturing new business considering a record-breaking harvest, which should exceed 190 million tons of grains only in the first harvest. This figure surpasses the installed capacity of 186 million tons1 of storage in the country.
Our strong ROIC evolved for another quarter, improving by 24.4 p.p. against LTM 4Q21, reaching 103.8%, also showing consistency in this indicator.
In 2022, we continued to reinforce the key factors of our business model, such as: brand leadership, premium positioning, proximity to customers, focus on operational efficiency and productivity, management of margins, diversification of products, segments and solutions, which will enable us to keep and improve our competitive advantage by capturing business with profitability at healthy levels that prepare the Company for possible scenarios of uncertainty.
Table 1 | Key Performance Indicators (R$ millions)
4Q22 | 4Q21 | Δ% | 3Q22 | Δ% | 12M22 | 12M21 | Δ% | |
Return on Invested Capital (*) | - | - | - | - | - | 103.8% | 79.4% | 24,4 p.p. |
Net Operating Income | 502.0 | 416.9 | 20.4% | 515.8 | -2.7% | 1,815.4 | 1,226.2 | 48.1% |
Net Income | 113.0 | 84.4 | 33.9% | 115.6 | -2.3% | 382.5 | 154.6 | 147.4% |
Adjusted Net Income | 107.2 | 84.1 | 27.5% | 121.4 | -11.7% | 386.2 | 159.9 | 141.5% |
Net Margin | 22.5% | 20.2% | 2,3 p.p. | 22.4% | 0,1 p.p. | 21.1% | 12.6% | 8,5 p.p. |
Adjusted Net Margin | 21.4% | 20.2% | 1,2 p.p. | 23.5% | -2,2 p.p. | 21.3% | 13.0% | 8,2 p.p. |
EBITDA | 151.3 | 119.0 | 27.1% | 155.8 | -2.9% | 548.3 | 233.2 | 135.1% |
EBITDA Margin | 30.1% | 28.5% | 1,6 p.p. | 30.2% | -0,1 p.p. | 30.2% | 19.0% | 11,2 p.p. |
Adjusted EBITDA (**) | 156.7 | 118.5 | 32.2% | 164.6 | -4.8% | 568.2 | 241.2 | 135.6% |
Adjusted EBITDA Margin (**) | 31.2% | 28.4% | 2,8 p.p. | 31.9% | -0,7 p.p. | 31.3% | 19.7% | 11,6 p.p. |
Earnings per Share | 1.5780 | 3.0263 | -47.86% | 2.6852 | -41.24% | 5.3404 | 5.5400 | -3.60% |
- LTM (last 12 months) ROIC (**) Adjusted EBITDA = EBITDA (-)non-recurring events (provisions for litigations and extemporaneous costs)
1 Fonte: "Conab" - National Supply Company
http://ri.kepler.com.br/ | 4Q 2022 Earnings Release | 2 |
NET OPERATING REVENUES
Figure 1 | Net Operating Revenues by Market (amounts in R$ millions)
Net Revenues increased by 20.4% for 4Q22 against 4Q21. YTD 2022, revenues increased by 48.1% against the same period of 2021, representing 91% of transactions in the domestic market for 4Q22 and YTD 2022, and 9% in the international market for 4Q22 and YTD 2022. It is worth highlighting that we had the best results in history in terms of Net Revenues. The evolution in proportions of revenues between the national and international markets is shown in figure 1 above.
Post-harvest
NOR | Post-Harvest |
- Net Revenues from Post-Harvestup 4.4% against the same period Post-Harvestwas R$1.2 billion, up
for 4Q22 amounted to R$333.8 million, of 2021. In 2022, Net Revenues from 32.1% against 2021.
4Q22 4Q21 Δ%
333.8 319.6 4.4%
- Compared to the last quarter (3Q22), there was a reduction in post-harvest revenues of 13.8% as a result of the seasonal effect of purchases in the segment.
3Q22 | 387.3 |
Δ% 12M22 12M21 Δ%
-13.8%1204.8 912.1 32.1%
- The 4.4% increase for the quarter and the 32.1% increase YTD 2022 are the result of a solid portfolio built throughout the year through assertive movements for access to the market, such as increasing the coverage in the cerrado region, and implementation of two Distribution Centers in new agricultural frontiers, which is a competitive advantage in the sale of post- harvest projects in this region, since Customers that are investing know that they will be well assisted regarding parts and services during harvesting periods.
- These movements, together with a competent management of the portfolio and deliveries, resulted in an expressive increase in sales to promising agricultural markets, such as those in the states of Goiás, Maranhão, Tocantins, Piauí and Mato Grosso. The latter surpassed the incredible mark of 100 projects sold in 2022.
It is important to highlight that the Company continues to direct efforts to improve its market access in the post-harvest segment, through commercial excellence and marketing intelligence. Like this, it further increases its presence in the market, contributing to reduce storage deficit in the country, aiming at increasing the
profitability of rural producers and the efficiency of the food chain in Brazil.
http://ri.kepler.com.br/ | 4Q 2022 Earnings Release | 3 |
Significant new sales were closed in 4Q22 that will contribute to boosting revenues for 2Q23 and 3Q23, of which we highlight:
- Four construction works for medium and large producers, representing R$59.5 million.
- Two construction works amounting to R$24.3 million for the industry sector and grain traders.
The works concentrate in the "Matopiba" region (Maranhão, Tocantins, Piauí and Bahia), and in the regions of Mato Grosso, Minas Gerais and Pará, reflecting our customer assistance strategy to expand market coverage.
International Business
NOR | International |
Business | |
4Q22 | 45.2 |
4Q21 | 40.1 |
Δ% | 12.7% |
3Q22 | 47.1 |
Δ% | -4.0% |
12M22 | 170.6 |
12M21 | 126.6 |
Δ% | 34.8% |
- Net Revenues from International Business for 4Q22 amounted to R$45.2 million, up 12.7% against 4Q21. In 2022, Net Revenues from Exports amounted to R$170.6 million, increasing by 34.8% against 2021.
- In addition to the robust portfolio in the turning from 2021 to 2022, some sales in new regions contributed to positive results for the quarter and YTD. The highlights were the works in South America, and sales made to Asian Southeastern countries, such as Indonesia, which have significantly contributed to YTD results in 2022.
- In 4Q22, significant new sales were recorded, which have contributed to support billings in 1Q23 and 2Q23. We highlight the works performed for a cereal trading customer located in Latin America, which represent R$12.7 million.
Ports and Terminals
NOR
4Q22
4Q21
Δ%
3Q22
Δ%
12M22
12M21
Δ%
Ports and
Terminals | • Net Revenues from Ports and Terminals for 4Q22 amounted to |
R$30.0 million, up by 614.3% against the result of R$4.2 million in | |
30.0 | |
4Q21. In 2022, the business unit's Net Revenues amounted to | |
4.2 | |
R$49.6 million, increasing by 183.4% against 2021. | |
614.3% | |
13.7 | |
119.0% | • The large volume of billings in the segment was concentrated on |
49.6 | |
4Q22 due to large projects in the Port of Santos/State of São Paulo, | |
17.5 | |
and other large terminals delivered in this period. | |
183.4% |
http://ri.kepler.com.br/ | 4Q 2022 Earnings Release | 4 |
- In 2022, our performance was above that recorded in 2021, as a result of important projects that contributed to good YTD results, reflecting the increase in the number of customers served in the period.
- In 4Q22, a new project sale was recorded. It will contribute to leverage billings in 2Q23, and consists of new works to complement the expansion plan of an existing and large port terminal located in Santos/State of São Paulo, representing R$9.6 million.
Agribusiness
NOR | Agribusiness |
4Q22 | 26.5 |
4Q21 | 0,0 |
Δ% | 100.0% |
3Q22 | 10.5 |
Δ% | 152.4% |
12M22 | 178.5 |
12M21 | 0,0 |
Δ% | 100.0% |
- Net Revenues from Agribusiness amounted to R$26.5 million for 4Q22 and R$178.5 million YTD 2022. Projects in this segment are characterized by their high complexity and, as result, they involve longer sales cycles, as do projects in the Ports and Terminals business. We should point out that the Company started to report this new segment in 1Q22, so no comparison to the revenues for same period of the year 2021 is provided. It must the mentioned that the Company made an assertive decision, since it resulted in complementary Net Revenues of approximately R$180.0 million YTD 2022.
- The main highlights in 4Q22 results are six construction works for expansion of the drying flow with the relevant peripherals for loading and unloading equipment, and assembled by Kepler, for use in the next soy harvest. This is a traditional customer; however, Kepler's main advantage was to meet the demand of these six construction works simultaneously in a short delivery term. The works are located in Mato Grosso, Rondônia and Roraima.
- In this segment, during the quarter, it is important to highlight a large project for the corn ethanol industry located in Dourados, Mato Grosso do Sul, which has significantly contributed to the diversification of the Company's market and expanded its actions in the agribusiness chain.
- In 4Q22, new important sales were performed, which will contribute to leverage billings in 1Q23 and 2Q23. They include the expansion of a soy crushing unit for oil production located in Goiás, representing R$21.0 million.
http://ri.kepler.com.br/ | 4Q 2022 Earnings Release | 5 |
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Kepler Weber SA published this content on 15 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 February 2023 22:08:04 UTC.
