Source: Randon Companies announcement
RIO GRANDE DO SUL, Brazil – Randon Companies finished the first half of 2020 reaching a net revenue of BRL 2.1 billion, an important performance for the company’s business during the challenges of the Covid-19 pandemic scenario. In the first six months of the year, the company achieved consolidated EBITDA of BRL 261 million, with an EBITDA margin of 12.4 percent.
In the second quarter of 2020 Randon Companies recorded a consolidated net revenue of BRL 933 million, a reduction of 28 percent compared to the same period in 2019, and consolidated EBITDA of BRL 154 million, 24 percent lower than the second quarter of the previous year.
The figures reflect the difficulties faced by the automotive sector, which, since 1957, did not register a month with production as low as in April 2020. According to data from the National Association of Automobile Manufacturers (Anfavea), the production of automobiles, light commercial vehicles, trucks and buses fell between 85 percent and 99 percent compared to April 2019.
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According to Randon Companies’ Chief Financial Officer, Paulo Prignolato, April was the most affected period, mainly due to the complete shutdown of some sectors. In this context, the organization made important moves to preserve and strengthen its cash, actions that brought results to improve the company’s business.
“Although the figures for the second quarter of 2020 were less than planned for the year, they were better than expected at the beginning of the pandemic”, said Prignolato.
The company’s favorable performance was driven by the resumption of some segments, which began in May. Agribusiness was the main one, benefiting from the record harvest, the increased demand for grains abroad and the favorable exchange rate. In addition to that, exposure to the aftermarket and sales abroad were also critical for the Auto Parts Division, at a time when truck manufacturers reduced demand considerably.
Randon Companies have the positive contribution of a diversified business model, which covers different economic sectors, geographies and a broad product portfolio, factors that bring resilience to businesses in adverse market moments.
According to Randon Companies’ CEO, Daniel Randon, in the second quarter, the company reinforced its safety protocols to protect the health of employees and their families and emphasized actions to ensure the continuity of operations.
“Now, more than ever, due to the scenario we are experiencing, we have made it a priority to take care of people and society. We understand that at the moment, everyone has to do their part, and for this, the company contributed with actions and donations to the communities. For the next few months, we will continue with the same focus, going to great lengths to ensure the safety of the teams and the sustainability of the local and global economy”, highlights Randon.
To view the entire announcement, click HERE.
