Rumo has a 90% drop in profit in the 2nd quarter, with crop failure, expensive diesel and interest

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Rumo once again accuses the combined effect of high fuel prices, crop failure in the south of the country and the effect of higher interest rates on the cost of debt, which pressured second-quarter earnings.

The logistics company of the same controllers as Cosan announced this Thursday (11) that it had a net profit of R$ 30 million from April to June, a drop of 90.4% compared to the same stage in 2021.

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The volume transported in the quarter totaled 18.6 billion equivalent tons, a volume 4.1% higher than a year earlier, with the 20.2% increase in the North Operation offsetting the 19.6% drop in the South Operation, which was affected by crop failure. Also benefiting from the 6.2% expansion in tariffs, net revenue rose 11.2% year-on-year to R$2.465 billion.

Rumo’s operating result measured by adjusted earnings before taxes, interest, depreciation and amortization (Ebitda) reached R$ 1.2 billion, 4.8% more in one year, however the Ebitda margin shrank 3 percentage points to 48.6%.

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“This result still reflects commercial negotiations at an unfavorable moment, due to the corn crop failure in 2021”, said Rumo, also citing the 42% increase in fuel prices.

In addition, the effect of higher interest rates caused a 68.5% worsening of the financial result, to a negative number of R$ 592 million.

The company’s net debt ended June at R$9.57 billion, down 0.2% on a sequential basis, with financial leverage at 2.7x, stable in the same comparison.

Source: CNN Brasil

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