Brazil’s WEG reported a net profit of R$1.327 billion ($255.13 million) in the first quarter of 2024, a 1.6% increase from the same period last year.
This growth occurred despite a significant 23.9% decrease from the fourth quarter of 2023.
This fluctuation underscores the company’s dynamic financial landscape amidst varying market conditions.
WEG S.A. is a global leader in electric engineering, offering products like electric motors and transformers, with worldwide operations.
The company reported a Net Operating Revenue (ROL) of R$8.033 billion ($1.54 billion), an increase of 4.4% year-over-year.
The net margin fell to 16.5%, down by 0.5 percentage points from early 2023 and 3.9 points from late 2023.
These shifts indicate a challenging yet manageable economic environment.
Further financial robustness is evident from WEG’s EBITDA, which stood at R$1.769 billion ($340.58 million), improving by 4.8% compared to the previous year.
The EBITDA margin also saw a marginal rise to 22%, a 0.1 percentage point increase year-over-year. This suggests effective cost management and operational efficiency.
Notably, the Return on Invested Capital (ROIC) was particularly strong, recorded at 38.9%, which is a significant 7.5 percentage points increase from the year before.
This impressive figure highlights WEG’s successful capital management strategies and its ability to generate value from its investments.
WEG credits its success to its long-cycle business strength, diverse product offerings, and ongoing efficiency in Brazil and internationally.
These elements combined have fortified WEG’s market position, enabling it to navigate through economic variabilities with resilience.
For investors and analysts looking to delve deeper into WEG’s financial intricacies, the company’s investor relations site offers comprehensive data and insights, which can be accessed here.