RIO GRANDE DO SUL, BRAZIL — The Kepler Weber Group announced on Aug. 11 BRL 3.7 million ($2.1 million) in net profit for the second quarter of 2010, an increase of 800% over a net profit of BRL 400,000 during the same period last year.
Kepler Weber said the market’s favorable conditions and the recovery of its operating margin allowed for the gross margin to grow from 6% in the second quarter of 2009 to 23% in the second quarter 2010. With these results, Kepler Weber’s EBITDA was BRL 11.1 million in the second quarter, with a 14% margin, in contrast to last year’s negative EBITDA of BRL 2.3 million.
Kepler Weber said its gross profit in the second quarter was BRL 91.1 million gross, which represents a 168% increase over last year’s second quarter. The company said the increase was due to the strong recovery in the internal market, with investments returning to grain storage systems following the repressed demand during the most critical period of the recession and, mainly, for the abundant grain harvests.
"The historic results obtained represent an accumulated BRL 1.5 million in 2010 and are a consequence of the actions taken in the last few years," Kepler Weber Managing Director Anastácio Fernandes Filho said. "There were marketing opportunities and the company was able to seize them".
Investment Relations and Financial Director Nolci Santos added that "the continuity of projects focused on reducing costs and improving stock management, as well as developing new market opportunities, are generating positive results for the company. The specialization of the Panambi (RS) and Campo Grande (MS) plants has helped Kepler Weber maintain a competitive edge, without the need for third-party funding."
Kepler Weber said it is prepared for to expand its business operations and ready to deal with the growing demand that is the result of growth in the agricultural population.