3rd quarter balance sheets: JBS and Boa Safra are highlights; retail falls with inflation

The third quarter financial statement season came to an end with data from WDC, also known as Livetech da Bahia. According to XP, the highlight was the mining and steel industry, which presented 100% of the numbers above expectations.

According to Fernando Ferreira, chief strategist at the brokerage, and Marcella Ungaretti, XP’s ESG research analyst, what favored companies in this market were the positive effect against the rise in the dollar in the period, the resumption of industrial activity (construction and construction). automotive sector), in addition to the heating of the economy after the impacts of the pandemic.

In the third quarter, the US currency jumped 9.51% – the highest appreciation in three months since January to March 2020 (+29.44%).

Vale, for example, rose almost 3% the day after the release of its results. The company recorded net income of US$ 3.88 billion between July and September, an increase of 33.6% against the same period last year.

However, net income was below Refinitiv’s estimate, which forecast US$ 6.15 billion in the period.

Who also took advantage of the fall of the dollar was the meatpacking sector. XP’s report pointed out that the volume of exports continued to drive company results.

JBS ended the quarter with net income of R$7.58 billion, an increase of 142.1% against last year.

Marfrig Global Foods posted net income of R$1.67 billion in the same period, up 148.7% compared to 2020.

However, João Daronco, an analyst at Suno Research, says that the biggest highlights were for Boa Safra and Kepler Weber.

The first company had net income between July and September of BRL 88.7 million, 105.3% higher than the previous year, while the second grew 78.7% in quarterly net income, from BRL 23 million in 2020 , to BRL 41.4 million, in 2021.

According to a survey by Economatica, the net profit of the 291 companies with shares in B3 totaled R$ 128.24 billion, representing an increase of 125% compared to the third quarter of 2020.

biggest frustrations

In the assessment of specialists, retailers took the position of the worst financial balance of the quarter, mainly due to inflation, as well as the retraction in consumption and political uncertainties.

The IPCA (Extended National Consumer Price Index) for October was 1.25%, or 10.65% in 12 months.

The survey by the Brazilian Association of Supermarkets showed that household consumption fell 0.49% in September, but in 2021 it accumulated an increase of 3.13%.

Magazine Luiza’s net income was BRL 143.5 million, 30.3% less than the amount collected in the same period in 2020. Via, owner of Casas Bahia, reported a net accounting loss of BRL 638 million, reversing the prior year net income of R$590 million. Despite the negative data, 69% of the industry reported results above or in line with XP’s expectations.

Americanas, for example, had net income of R$240.6 million in the period, six times higher than the previous year, largely due to the reversal of the Income Tax on the ICMS (Tax on Circulation of Goods and Services) in the PIS/Cofins calculation basis.

“The fourth quarter tends to be more positive for retail, given the seasonality of the segment, we have Black Friday and Christmas, which move the sector. However, due to high inflation and the macroeconomic uncertainties that plague the domestic market, I see this segment still struggling”, says Daronco.