Kepler Weber's 2010 net profit reaches R25.4 million

by World Grain Staff
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RIO GRANDE DO SUL, BRAZIL — Kepler Weber announced on March 28 net profit of R25.4 million for fiscal year 2010. The company, an international grain storage supplier, said that rigorous management of costs and productivity gains helped produce solid results.

Kepler Weber noted that five factors further contributed to the results achieved by the company:

• the increasing turnover, driven by the resumption of investments by agribusiness agents;

• projections of a robust harvest in 2010-11 in Brazil;

• deficit static storage capacity;

• the provision of government funding, with favorable conditions for obtaining resources through sustainable investments (PSI) and finishing; and

• the competitive cost of imported steel.

The company said that this combination of factors enabled the growth of its net margin of 1.64% in 2009 to 6.93% in 2010. Kepler Weber’s 2010 earnings before interest, taxes, depreciation and amortization (EBITDA) was R53.3 million, with an EBITDA margin of 14.5%, compared to the result of R1.3 million in 2009 with 0.6% margin. The company's net revenues showed a growth of 72.5%, reaching R366.3 million in the year 2010, compared to $212.3 million in 2009.

On the basis of known business in grain storage systems, Kepler Weber said its market share in Brazil increase of 9% to 59% in 2010.
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