Weg reported net income of R$ 943.9 million in the first quarter of this year, up 23.5% compared to the same period last year.
Net income was positively impacted by the recognition of tax credits referring to the exclusion of ICMS from the PIS and Cofins tax base.
Excluding these non-recurring effects, net income would have been R$918.1 million in this quarter.
From January to March, Ebitda (earnings before interest, taxes, depreciation and amortization) totaled BRL 1.232 billion, an increase of 21.3% compared to the same period in 2021.
The Ebitda margin was 18.1%, down 1.9% pp compared to the same quarter last year.
In its earnings release, the company highlights that the uncertainties and challenges in the global supply chain and the consequent increase in raw material costs, together with the change in the product mix, notably due to the return of revenue from generation projects wind power, brought pressure to the company’s operating margins.
Net operating revenue grew by 34.5% over a year, 48.1% in the domestic market and 22.8% in the foreign market.
Net operating revenue from the foreign market, measured in dollars by the average quarterly quotations, grew by 29.4% in relation to the same period last year, with North America representing 44.1%.
Cash flow
Operating activities consumed BRL 136.9 million in the first three months of 2022, reflecting the greater need for working capital in the period, notably in relation to the increase in the company’s inventories.
“This move was necessary due to the scenario of volatility and uncertainties in the global supply chain”, explains the company.
The level of investment (Capex) in modernization and expansion of production capacity grew by 56% in relation to the same period of the previous year, totaling R$ 209.6 million, 52% of which went to production units in Brazil and 48% to industrial parks and other facilities abroad.
The company also informs that it raised R$ 1.739 billion and made amortizations of R$ 91.8 million, including interest on loans, resulting in a net funding of R$ 1.647 billion.
The remuneration of equity capital (dividends and interest on equity) totaled R$ 1.048 billion. The final result was the generation of R$ 593.4 million in financing activities in the period.
Source: CNN Brasil
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