Market Update: Q2 Highlights from Qualicorp, Dexco, and Engie Brasil

In the second quarter of 2024, three major Brazilian firms—Qualicorp, Dexco, and Engie Brasil—revealed varied financial results. Despite market shifts, Qualicorp saw a slight net profit decrease to R$13.3 million ($2.38 million).

Conversely, Dexco achieved robust growth, boosting recurrent net profit by 41.2% to R$126.3 million ($22.55 million), thanks to enhanced production efficiencies.

Meanwhile, Engie Brasil announced a significant interim dividend of R$932.8 million ($166.57 million), equating to R$1.143 per share ($0.204).

These diverse strategies and outcomes reflect each firm’s adaptation to fluctuating economic conditions.

Qualicorp’s Net Profit Decreases Slightly in Q2

Qualicorp reported a modest decline in net profit for the second quarter, earning R$ 13.3 million ($2.38 million at an exchange rate of 5.60), a 3.2% decrease compared to the same period last year.

However, adjusted net profit rose significantly to R$ 30.1 million ($5.38 million), an increase of 112.4% from the previous year’s R$ 14.2 million ($2.54 million).

The company’s adjusted EBITDA reached R$ 181 million ($32.32 million), down 7.1% year-over-year. The adjusted EBITDA margin was 45.4%, showing a slight improvement of 0.6 percentage points.

Total net revenue fell by 8.3% to R$ 398.8 million ($71.21 million). The financial results showed a net expense of R$43 million ($7.68 million).

Net debt closed at R$1.096 billion ($195.71 million), decreasing by 4.6% from the end of March. The financial leverage ratio improved to 1.48 times from 1.53 in the previous quarter.

Dexco Reports a 41.2% Increase in Recurrent Net Profit for Q2

Dexco saw a significant 41.2% increase in its recurrent net profit for the second quarter of 2024, reaching R$ 126.3 million ($22.55 million).

Excluding certain one-time items, net profit would have decreased by 40% to R$94.5 million ($16.88 million). Production and sales improved notably in the Metals and Sanitary Ware division.

Shipments increased across all segments: metals and sanitaryware by 5%, ceramic coatings by 3%, and wood panels by 13%.

Adjusted recurrent EBITDA grew by 7.7% to R$ 376.5 million ($67.23 million), with the EBITDA margin rising by 1.0 percentage points to 18.9%.

Consolidated revenue grew by 2.1% to R$ 1.995 billion ($356.16 million), fueled by higher sales of premium products. Consistent results from the Wood Panel division also contributed to this growth.

Engie Brasil to Pay R$ 932.8 Million in Interim Dividends

Engie Brasil Energia’s board has approved the payment of R$ 932.8 million ($166.57 million) in interim dividends, equating to R$ 1.143 per share ($0.204).

Shareholders recorded by the end of trading on August 21, 2024, will be eligible for the dividend, with shares trading ex-dividend on August 22.

The payment date will be announced later. The dividend payout ratio stands at 55%, consistent with the company’s short-term investment commitments.

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