PLASCAR PARTICIPAÇÕES INDUSTRIAIS S.A. EARNINGS RELEASE 2023
Plascar Participações Industriais S.A. (Bovespa: PLAS3), by way of its subsidiary Plascar Ltda., is a Brazilian industry which in 2023 celebrated 60 years of history in plastic transformation and development of parts and internal and external finishes for vehicles by supplying high quality products to most automakers operating in Brazil.
Plascar has four plants strategically positioned in the States of São Paulo and Minas Gerais that host a parking site of injectors having a closing force capacity of 70 to 3.200 tons, automatic and manual painting lines, chrome plating, metallization, welding, and SMC press machines, in addition to its own tooling for building and maintance of molds.
Shareholding Structure
11.25%
Other
Shareholders
7.12%
Postalis
21.64% | 59.99% |
Deise Duprat V. | Pádua |
Heller and | IV* |
Family |
*a Mapa Capital's indirect subsidiary
Stock Quote 12/31/2023
PLAS3 - R$ 7.31
Number of Shares
Common: 12,425 million
Market Price at
12/31/2023
R$ 90.83 million
BOARD OF DIRECTORS
Andre Luiz Helmeister
Antonio Farina
Daniel Alves Ferreira
João Luís Gagliardi Palermo
Maria Gustava Heller Brito
Paulo André Porto Bilyk
Paulo Zimath
SUPERVISORY BOARD
Charles Dimetrius Popoff
Francisco Eduardo de Queiroz Ferreira
Marcelo Ferreira do Nascimento
INVESTOR RELATIONS
CONTACT
Rodrigo Cartagena do Amaral
Chief Financial and Investor
RelationsOfficer
contatori@plascargroup.com
Rua Wilhelm Winter, 300 - Distrito
Industrial - Jundiaí - SP
CEP 13213-000
HIGHLIGHTS 2023
Plascar Participações Industriais S.A.
R$ 1,183.6 million
13.7% vs. 2022
Gross Revenue
R$ 110.9 million
a 11.7% margin
EBITDA
Plascar's Performance vs. the Market
-1.9% in production of vehicles¹ in Brazil vs. 2022
+13.7% in gross revenue vs. 2022
¹Source: ANFAVEA
Performance in the Period
R$ thousand | 2023 | 2022 | Var % |
Gross Revenue | 1,183,644 | 1,041,045 | 13.7% |
Net Revenue | 947,129 | 848,190 | 11.7% |
Gross Profit | 115,774 | 119,988 | (3.5%) |
Gross Margin % | 12.2% | 14.1% | -1.9p.p. |
EBITDA | 110,905 | 56.482 | 96.4% |
EBITDA margin % | 11.7% | 6.7% | 5.0p.p. |
Profit (loss) | (714) | (97,121) | 99.3% |
Management Discussion and Analysis
The year 2023 was marked by high volatility in our costumers' production, with moments of sudden stops and a return towards stability throughout the second semester. This recovery was due to the recovery in the production of heavy vehicle production, which had been heavily impacted during the first semester due to the transistion to Euro 6 engines.
Despite this volatile scenario, the Company's Net Revenue increased by 11.7% compared to 2022, while vehicle production, according to ANFAVEA (Brazilian Association of Motor Vehicle Manufacturers), decreased by 1.9% over the same period of the previous year.
EBITDA and Net Loss for the year were significantly impacted by the completion of the negotiation of taxes with the Attorney General's Office (PGFN). This negotiation included discounts on fines and interest, in addition to the use of tax losses to pay the principal, leading to a significant reduction in tax liabilities. This was an essential step for the continuity of the Company's restructuring process.
Plascar closed 2023 strengthened by important tax negotiations and investments of R$21 million in CAPEX (R$68 million in 2022), focused on market growth and efficiency enhancement. For 2024, we remain committed to continuous recovery and the launch of new projects, aiming to expand our position in the automotive market.
Automotive
Market
2023 was a challenging year for the Brazilian automotive market, with a 1.9% reduction in vehicle compared to the previous year, according to ANFAVEA. This decline was driven, mainly, by heavy vehicles due to the engine replacement in trucks, as the new emission control technologies employed have high cost, leading to a decrease in production.
On the other hand, there was a increase of 9.64% in vehicle sales compared to 2022, marking the highest daily average in the last four years, according to ANFAVEA. This increase was mainly driven by vehicle rental companies, which acquired 75 thousand units, 30 thousand more than the previous year's average, leading to a reduction in automakers' inventories.
Plascar's Net Revenue vs. Market Performance
698 | 665 | |||||||||||||||||
613 | 619 | |||||||||||||||||
586 | 598 | 596 | 596 | |||||||||||||||
536 | 574 | |||||||||||||||||
496 | ||||||||||||||||||
255,3 | ||||||||||||||||||
233,3 | 225,2 | 225,1 | 242,4 | |||||||||||||||
192,8 | 196,9 | 224,3 | ||||||||||||||||
142.3
91.7
75.2
1T19 | 1T20 | 1T21 | 1T22 | 2T22 | 3T22 | 4T22 | 1T23 | 2T23 | 3T23 | 4T23 |
Receita Líquida (BRL MM) | Produção de Veículos - ANFAVEA ('000) |
Despite the results achieved in 2023, ANFAVEA's forecasts for 2024 are positive given the current low inventory level. For this year, it is expected a 6.2% increase in vehicle production and a 6.1% increase in sales.
AUTOMOTIVE OUTLOOK
Vehicle Production
Forecast | Var % | 2023 | ||||
2024 | ||||||
2,470 | 6.2% | 2,325 | ||||
2022
2,370
Var %
-1.90%
Vehicle Sales
2,450
6.1%
2,308
2,105
9.64%
Source: ANFAVEA, Brazil
Net Revenue
Plascar continues to gain market confidence, leading to an 11.7% growth in Net Revenue. The new projects started in 2023 contributed to this increase, along with price adjustments made to help meet the rise in production costs. In addition, throughout 2023 Caçapava unit reached full capacity, contributing to the increase in the Company's revenues. Over the last 5 years, Plascar has shown a compounded growth rate of 27.7%.
Net Revenue (R$ thousand)
947,129
11.7%
848,190
Despite this positive result for the year, the Company continues to seek and implement measures to boost revenue and offset potential macroeconomic scenarios that
may impact the automotive industry, particularly vehicle production, to ensure a
2022 2023
sustainable financial and economic balance for the Company.
407,550
Net Revenue (R$ thousand)
947,129
848,190
612,684
369,188
1 | ||||
2019 | 2020 | 2021 | 2022 | 2023 |
Performance by Business Segment
In Q4 2023, after a decrease in the heavy vehicle share of revenue observed throughout the year, the segment experienced an increase of 4.36 percentage points compared to the previous quarter, indicating a recovery in the category.
The decline in revenue from heavy vehicles at the beginning of the year was already expected due to automakers' inventories recorded at the end of 2022, as the new Euro 6 regulation became effective in 2023. The recovery in truck revenue in Q4 2023 is very positive for the Company, which expects growth to be increasingly higher throughout the next year, along with the share of light vehicles, due to the new projects under development.
Gross Revenue
6.13% | 4.42% | 5.49% | 5.81% | 4.47% | 3.64% | 3.46% | 3.60% |
25.15% | 21.82% | 20.37% | 24.73% | ||||
26.58% | 32.91% | 35.65% | |
37.31% | |||
67.29% | 70.38% | 74.54% | 76.17% | 71.67% | ||
62.67% | ||||||
58.86% | ||||||
56.88% | ||||||
1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | 2Q23 | 3Q23 | 4Q23 | ||||
Light | Heavy | Non Automotive | |||||||||
Profitability
In 2023, there was a 3.5% decrease in Gross Profit while EBITDA improved 96.4% compared to 2022. The former was impacted by an increase in inefficiency, mainly in the first half of the year due to automaker shutdowns due to high inventory levels and the decline in truck production, while EBITDA was heavily impacted by the negotiations with PGFN.
Gross Profit (Loss) (R$ thousand) | EBITDA (R$ thousand) |
-3.5%
110,905
96.4%
119,988
56,482
115,774
2022 | 2023 | 2022 | 2023 | ||||
Regarding Net Loss, after the effect of the transaction as mentioned above, the Company ended the year with a negative result of R$ 700 thousand, representing an improvement of 99.3% compared to 2022.
Net (Profit) Loss (R$ thousand)
20222023
-714
-97,121
Net Debt
Following the trends of previous quarters, there was an improvement in Net Debt with a reduction of R$ 4.3 million compared to 2022
Net Debt (R$ thousand)
444,182
191,860
118,075 104,556 126,506
187,596
4T2018 | 4T2019 | 4T2020 | 4T2021 | 4T2022 | 4T2023 |
The Company once again maintained an appropriate leverage level, as Net Debt to EBITDA ratio remained consistent with that of previous quarters.
Net Debt/EBITDA ratio
7.3x
4.1x | ||||||||||||||||||||||||||||||||||||
3.4x | ||||||||||||||||||||||||||||||||||||
1.8x | 1.84x | 1.82x | 1.6x | |||||||||||||||||||||||||||||||||
4T18 | 4T19 | 4T20 | 4T21 | 4T22 | 1T23 | 2T23 | 3T23 | 4T23 |
-4.7x
-5.2x
Income Statements
Statements of profit and loss for the years ended December 31, 2023 and 2022 (In thousands of reais)
Parent | Consolidated | |||||
2023 | 2022 | 2023 | 2022 | |||
Net operating revenue | ||||||
- | - | 947,129 | 848,190 | |||
Cost of sales | - | - | (831,355) | (728,202) | ||
Gross profit | ||||||
- | - | 115,774 | 119,988 | |||
Operating income (expenses) | ||||||
Selling expenses | - | - | (53,505) | (36,637) | ||
General and administrative expenses | (2,116) | (1,796) | (82,885) | (80,251) | ||
Share of profit (loss) of investee | 1,108 | (95,715) | - | - | ||
Other operating expenses, net | - | - | 70,818 | 485 | ||
Profit | ||||||
(1,008) | (97,511)) | (65,572) | (116,403) | |||
Profit (loss) before finance income (costs) | (1,008) | (97,511) | 50,202 | 3,585 | ||
Finance income (costs) | ||||||
Finance costs | (110) | (58) | (120,397) | (112,489) | ||
Finance income | 404 | 448 | 10,811 | 12,988 | ||
294 | 390 | (109,586) | (99,501) | |||
Loss before income tax and social contribution | (714) | (97,121) | (59,384) | (95,916) | ||
Deferred income tax and social contribution | - | - | 58,670 | (1,205) | ||
- | - | 58,670 | (1,205) | |||
Loss for the year | ||||||
(714) | (97,121) | (714) | (97,121) | |||
Attributable to: | ||||||
Owners of the Company | - | - | (714) | (97,121) | ||
- | - | (714) | (97,121) | |||
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Disclaimer
PLASCAR Participações Industriais SA published this content on 15 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 March 2024 19:55:01 UTC.
