Brazil’s Randoncorp has recorded a consolidated net revenue of BRL 2.9 billion (almost €550 million) in the third quarter of 2023, a positive outcome considering the current competitive market context.
Year-to-date, the transport equipment company has recorded a BRL 8.3 billion (€1.5 billion), a figure that represents stability in comparison to the first nine months of 2022, even in a year with a strong retraction in volumes in one of the company’s main markets.
Randoncorp’s CFO, Paulo Prignolato said that the performance achieved, despite a drop in volumes and revenues associated with the truck market and a challenging international scenario, is thanks to the company’s business strategy.
“We are managing to deal with and overcome these challenges due to the resilience of our companies and our diversification of markets, geographies and portfolios, which in addition to contributing to positive results, allow us to continue executing our strategic plan,” he said.
Consolidated EBITDA reached BRL 396.4 million (almost €75 million) in the third quarter, reaching BRL 1.3 billion (€246 million) in the year, which represents an increase of 8.5 per cent compared to the period from January to September 2022. The EBITDA margin remained stable in the quarter compared to the same period last year, at 13.7 per cent, and is at 15.4 per cent in 2023, above the same period of the previous year.
The company suggests the factors contributing to revenue include continued good demand in the semi-trailer market, as well as solid aftermarket performance in both revenue and sales volumes.
Revenue from the foreign market, which combine export values with sales made by units located outside Brazil, totalled USD 119.1 million in the third quarter, representing 20.1 per cent of consolidated net revenue. In 2023, this indicator reached 385.4 million USD, 15.5 per cent higher than the same period in 2022, favoured by the increase in revenues from operations Hercules, in the United States, and Juratek, in the United Kingdom.
“Over the last few years, we have focused on expanding our operations in the aftermarket and international markets,” said Randoncorp CEO, Sérgio Carvalho. “Adding to all this, portfolio expansion and defence of the leadership position in our already consolidated businesses continue to be fundamental to the company’s strategy. We remain confident in achieving the main indicators of the guidance released to the market, certain that we are on the correct path so that the company continues to grow in a sustainable and balanced way,”
Financial solidity has also been a factor in the results recorded, Randoncorp said, and was highlighted by the S&P Global Ratings agency, which maintained the corporate rating on the Brazilian national scale at “brAA+” and recently changed the outlook from stable to positive. Among the points listed for this classification are the expectation of good profitability and reduction in Randoncorp’s leverage in the coming years, due to the recovery of operating markets and greater cash generation.
In other company news, Randon Companies, has announced a name change in what it is calling a strategic step towards its consolidation as a multinational company.