Source: Fras-le announcement
CAXIAS DO SUL, Brazil – Fras-le closed the first half of 2020 reaching net revenue of R$ 620 million, an important result for the company, especially in the midst of the challenging scenario caused by the Covid-19 pandemic.
In the same period, revenue stemming from the foreign market grew 2 percent, compared to the previous year, reaching R$ 336 million. EBITDA was R$ 80 million, an increase of 13 percent compared to the first half of 2019.
In relation to the figures for the second quarter of 2020, Fras-le recorded net revenue of R$ 280 million, 17 percent lower than in the second quarter of 2019. EBITDA decreased by 0.1 percent, compared to the same period last year, totaling R$ 42 million.
Fras-le Posts Q1 Revenue Growth
According to the company’s Director of Investor Relations Hemerson De Souza, the second quarter of 2020 was the period in which the company most felt the impact of the pandemic.
“The scenario of market uncertainties, outages and difficulties in some customers’ operations have made these months the most challenging for our business,” he said. “In June, demand reached levels very close to those recorded before the pandemic, contributing to moderate optimism for the coming quarters.”
Fras-le’s favorable performance was driven by the aftermarket sector, especially the heavy line, in which fleet owners, mainly food and medicine, did not stop due to the pandemic.
In addition, the diversification of both the product mix and the company’s geographic performance, which directs its sales to more than 100 countries, contributed positively to the results achieved.
Since the beginning of the Covid-19 pandemic, Fras-le has been carrying out to protect the health of its employees and family members, to ensure the continuity of operations and to contribute to the functioning of the local and global economy.
In the second quarter of 2020, investments totaled R$ 11.4 million, the main ones: R$ 2.7 million at Fras-le’s unit in Caxias do Sul, intended for machines, equipment, tools, molds and safety adjustments of the NR-12 standard.
Acquisition of Nakata Automotive
The largest movement of mergers and acquisitions in Fras-le’s history, the purchase of Nakata Automotiva, disclosed to the market on December 17, 2019 was approved by the Administrative Council of Economic Defense (CADE) on July 3, 2020 and by the company’s shareholders through an extraordinary general meeting held on July 23, 2020. The closing of the operation still depends on meeting the preceding conditions provided for in the contract for the purchase and sale of shares and is expected to occur within the third quarter of 2020.
To view the entire announcement click HERE.