Tenda Swings to Profit, PetroReconcavo Faces Decline, MRV&Co Boosts Margins in Q1

Tenda (TEND3) reported a Q1 net profit of R$ 4.4 million ($0.86 million), a turnaround from last year’s R$ 41.9 million ($8.22 million) loss.

Meanwhile, their consolidated net revenue rose by 14.4% to R$ 744.9 million ($146.06 million).

From January to March, Tenda’s primary brand saw a net profit of R$ 19.9 million ($3.90 million), significantly up from the previous year’s R$ 23.1 million ($4.53 million) loss.

Moreover, their adjusted EBITDA increased to R$ 94.9 million ($18.61 million) from R$ 69.4 million ($13.61 million), and the EBITDA margin expanded to 13.8%.

Tenda’s CFO, Luiz Mauricio Garcia, stated that the new FGTS Futuro policy would positively impact operations from May onwards.

Furthermore, Tenda’s Alea division reduced its losses to R$ 15.4 million ($3.02 million) from R$ 18.8 million ($3.69 million) last year.

Alea’s adjusted gross margin improved to 6.5%, up from the previous quarter’s negative 10.7%.

“This marks significant progress for Tenda,” Garcia emphasized, expecting continued profitability improvements.

PetroReconcavo’s (RECV3) First Quarter Profit Falls 45% to R$ 110.3 Million

PetroReconcavo (RECV3) saw a 45% decrease in Q1 net profit, down from R$ 199.5 million ($39.12 million) last year to R$ 110.3 million ($21.63 million).

This decline stemmed from adverse financial results and tax changes.

Despite the profit drop, their EBITDA rose by 6% to R$ 353.4 million ($69.29 million). The EBITDA margin also improved, reaching 47.4%.

Q1 net revenue reached R$ 744.7 billion ($146.02 billion), growing 4% year-over-year.

Meanwhile, extraction costs per barrel rose to $13.33, with total costs increasing by 1% to R$ 338.6 million ($66.39 million).

PetroReconcavo’s negative net financial result of R$ 71 million ($13.92 million) was mainly due to currency exchange fluctuations.

Their net debt decreased by 20% to R$ 702.5 million ($137.75 million).

The company’s net debt to adjusted EBITDA ratio improved to 0.54x, a decrease of 0.15 points from last year.

MRV&Co Reports Q1 Profit Boosted by Margin Improvements

MRV&Co (MRVE3) announced a Q1 net profit of R$54 million ($10.59 million) in its incorporation segment, reversing last year’s loss. This gain was driven by substantial margin growth.

The segment, including MRV and Sensia brands, moved from an adjusted loss of R$65 million ($12.75 million) to a profit of R$54 million ($10.59 million).

Gross margin improved notably to 25.9%, and the net margin rose by 4.5 points to 2.9%.

Excluding equity swaps and IPCA/CDI swap impacts, MRV&Co showed strong operational data. Net sales in incorporation jumped by 18.4% to R$2.13 billion ($417.65 million).

MRV&Co reported an adjusted loss of R$11 million ($2.16 million), down from last year’s R$46 million ($9.02 million) profit.

Cash generation in the segment reached R$24.8 million ($4.86 million), a significant improvement over last year’s R$139.7 million ($27.39 million) consumption.

“Q1’s cash intensity will normalize in upcoming quarters,” CFO Ricardo Paixão stated, mentioning R$100 million ($19.61 million) in additional land payments.

Paixão noted that recent heavy rains paused operations in Rio Grande do Sul, impacting only a minor portion of MRV’s operations.

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