Romi’s Manufacturing Performance Shows Mixed Results in Q3 2024

The Brazilian industrial equipment manufacturer Romi experienced significant changes in its financial performance during the third quarter of 2024.

The company’s net profit dropped to R$23 million ($4.1 million), marking a 48.2% decrease from the previous year’s R$44.4 million ($7.9 million).

The company’s overall revenue decreased to R$264.8 million ($47.3 million), representing a 2.9% decline compared to the same period last year.

The Burkhardt + Weber Machinery division saw its revenue fall by 44% to R$16.4 million. The Cast and Machined Products division experienced a 6.7% decrease to R$46.1 million.

Despite these declines, the Romi Machinery unit showed positive growth with a 4.3% increase in revenue, reaching R$202.2 million ($36.1 million). The company highlighted its growing machine rental business as an increasingly important revenue stream.

The company’s EBITDA reached R$34.2 million ($6.1 million), showing a 38.6% decrease compared to the third quarter of 2023.

The EBITDA margin declined from 20.4% to 12.9%. Operating expenses rose significantly by 56.1% to R$59.7 million ($10.7 million).

The order backlog showed remarkable growth, reaching R$758.5 million ($135.4 million), representing a 36.1% increase year-over-year.

The Burkhardt + Weber division led this growth with orders totaling R$379.2 million ($67.7 million), a 46% annual increase.

Romi Machinery orders grew by 29.4% to R$312.1 million ($55.7 million), while Cast and Machined Products orders increased by 19.2% to R$67.2 million. Total new orders for the quarter reached R$332.8 million ($59.4 million), showing a 15.3% annual increase.

The Romi Machinery division recorded a 34.5% increase in new orders to R$245.9 million ($43.9 million), and Cast and Machined Products saw a 16.2% rise to R$45.6 million. However, B+W’s new orders decreased by 37.9% to R$41.3 million.

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