Brazil-based OEM, Randon Companies, achieved record revenues earlier this year which was driven by sales to foreign markets and solid business unit performance.
In the first half of 2022, Randon Companies achieved consolidated net revenue of $5.2 billion BRL (approx. €1 billion), a 30 per cent growth compared to the same period last year. The advance is driven by the performance of the foreign market and revenue records in some of its business verticals, such as Fras-le, Trailers and Autoparts.
For the Chief Financial Officer of Randon Companies, Paulo Prignolato, the result so far presents positive numbers within a challenging context, which proves the efficiency of the strategy adopted, based on a diversified business model.
“Even in a complex scenario, the diversification strategy allows us to continue delivering resilient and sustainable growth”, he said.
In relation to Q2 2022, the company reached $2.8 billion BRL (approx. €539,000) in consolidated net revenue, an increase of 31 per cent compared to the same period in 2021.
Consolidated EBITDA was $362 million BRL (€69.7 million), an increase of 12 per cent, with an EBITDA of 13.1 per cent. Revenues from the foreign market, which include both exports from Brazil and sales made by business units located in other countries, reached $112.5 million USD, an increase of 58 per cent compared to the same period last year, and an increase of 13 per cent compared to the first quarter of this year.
Among the business verticals of Randon Companies, the main highlight in the second quarter of 2022 was the performance of the subsidiary Fras-le. The company’s net revenue in the period reached $782.6 million BRL (approx. €151 million), which represents a 31 per cent growth compared to the second quarter of 2021.
Some of the factors that favoured Fras-le’s growth in the period were the growth of sales in aftermarket due to the low availability of new vehicles, the sale of brake linings for commercial vehicles, driven by agribusiness, and the strong export demand for friction material for the commercial line and brake discs for light vehicles.
In the Trailers vertical, which includes the business units of manufacturing and assembling semi-trailers and railway wagons, revenue in the foreign market was the main highlight. Volumes of units sold increased by 36 per cent in the period, due to increased demand in South American countries, especially Chile. The expressive growth of the Autoparts vertical for commercial vehicles, which includes the operations of Castertech, Suspensys, Master and JOST Brasil, was also important for Randon Companies. Net revenue from these units reached almost $1 billion BRL (approx. €192.7 million) in the second quarter, mainly driven by revenues from recently acquired companies and the addition of capacity.
“We achieved another quarter of record revenues, and we continue to carry out structural transformations in the company, seeking to build the future we desire today,” said Randon Companies CEO, Sérgio L. Carvalho.
“It is part of our strategy to expand our revenues in geographies with great market potential and that bring a more resilient profile to our companies.”
In this regard, in July, the company announced the signing of a purchase intention agreement with the North American semi-trailer manufacturer Hercules, which increases its exposure to the international market.
“Accessing markets, such as the United States, opens up great business opportunities, not only in the road equipment segment, but for our auto parts solutions”, said Carvalho.
Investments in technology and expansion of industrial capacity also marked the last quarter, with the inauguration of the JOST Brasil factory in city of Campinas (SP), and new areas of inventories and forging of Master Sistemas Automotivos, in Caxias do Sul (RS), with automated and robotic processes, developed by RTS Industry.
In addition to these moves, Randon Companies recently announced a robust investment plan of $100 million BRL (approx. €19.3 million) in renewable energy projects, linked to the company’s ESG Ambitions and the commitment to reduce greenhouse gas emissions from its operations by 40 per cent by 2030.