2Q23 Earnings Release
July 18, 2023
June 30, 2023 | ||||
Share price at 7/17/2023 | Earnings Conference Call broadcast over the web in Portuguese, with | |||
ROMI3 - R$15.62 per share | ||||
simultaneous translation into English | ||||
Market value | July 18, 2023 | |||
11 a.m. (São Paulo) | 3 p.m. (London) | 10 a.m. (New York) | ||||
R$ 1.386.0 million | ||||
https://us02web.zoom.us/webinar/register/WN_scIE_nDBT-6IyMPsG_DASA | ||||
US$ 288,3 million | ||||
Webinar ID: 895 4703 2083 | ||||
Number of shares | Dial-in number: +55 (11) 4632-2236 | |||
International dialing numbers: https://us02web.zoom.us/u/kszWE5ZfN | ||||
Common: 88,734,045 | ||||
Total: 88,734,045 | ||||
Free float = 50.8% |
Earnings Release
2nd quarter of 2023
Santa Bárbara d'Oeste - São Paulo, June 30, 2023
ROMI S.A. ("ROMI" or "Company") (B3: domestic market leader in the Machine Tools and Plastic Processing Machines markets, as well as an important producer of Rough and Machined Cast Iron Parts, announces its results for the second quarter of 2023 ("2Q23"). Except where otherwise stated, the Company's operating and financial information is presented on a consolidated basis, in accordance with the International Financial Reporting Standards (IFRS).
Statements contained in this release related to ROMI's business outlook, projections of operating and financial results and references to the Company's growth potential are mere forecasts and have been based on Management's expectations regarding its future performance. These expectations are highly dependent upon market behavior, the economic situation in Brazil, the industry and international markets. Therefore, they are subject to changes.
Investor Relations Contact
Fábio B. Taiar
Investor Relations Officer +55 (19) 3455-9418dri@romi.com
Highlights
Adjusted EBITDA in 2Q23 was R$ R$41,2 M with margin of 13.4%
- The gross margin in 2Q23 increased by 1.5 p.p. compared to the same period of 2022, driven by the performance of the ROMI Machines and B+W Machines Business Units.
- The gross and adjusted operating margin of the ROMI Machines Unit in 2Q23 grew by 1.0 p.p. and 0.8 p.p. compared to the same period of 2022, with the growth of the machine rental business;
- The B+W Machines Unit in 2Q23 posted a significant increase in operating margins, reflecting gains in operational efficiency and the increase in revenues from services provided, spare parts, and sale of machines.
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Earnings Release
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Quarterly | Acumulated | |||||||
R$'000 | 2Q22 | 1Q23 | 2Q23 | Chg. | Chg. | 1H22 | 1H23 | Var |
2023/2022 | ||||||||
Revenues Volume | ||||||||
ROMI Machines (units) | 294 | 205 | 272 | 32,7% | -7,5% | 550 | 477 | -13,3% |
Burkhardt+Weber (units) | 3 | 0 | 2 | - | -33,3% | 3 | 2 | -33,3% |
Rough and Machined Cast Iron Parts (tons) | 6.519 | 4.232 | 3.542 | -16,3% | -45,7% | 12.080 | 7.774 | -35,6% |
Net Operating Revenue | 372.062 | 259.155 | 308.636 | 19,1% | -17,0% | 657.397 | 567.791 | -13,6% |
Gross margin (%) | 28,2% | 33,1% | 29,7% | 29,0% | 31,2% | 0,0% | ||
Operating Income (EBIT) | 40.345 | 37.045 | 33.561 | -9,4% | -16,8% | 68.910 | 70.606 | 2,5% |
Operating margin (%) | 10,8% | 14,3% | 10,9% | 10,5% | 12,4% | 0,0% | ||
Operating Income (EBIT) - adjusted (*) | 40.345 | 30.767 | 26.755 | -13,0% | -33,7% | 68.910 | 57.522 | -16,5% |
Operating margin (%) - adjusted (*) | 10,8% | 11,9% | 8,7% | 10,5% | 10,1% | 0,0% | ||
Net Income | 33.000 | 36.130 | 32.625 | -9,7% | -1,1% | 63.504 | 68.755 | 8,3% |
Net margin (%) | 8,9% | 13,9% | 10,6% | 9,7% | 12,1% | 0,0% | ||
Net Income - adjusted (*) | 33.000 | 30.052 | 26.036 | -13,4% | -21,1% | 63.504 | 56.088 | -11,7% |
Net margin (%) - adjusted (*) | 8,9% | 11,6% | 8,4% | 9,7% | 9,9% | 0,0% | ||
EBITDA | 52.502 | 51.671 | 48.038 | -7,0% | -8,5% | 92.561 | 99.709 | 7,7% |
EBITDA margin (%) | 14,1% | 19,9% | 15,6% | 14,1% | 17,6% | 0,0% | ||
EBITDA - adjusted (*) | 52.502 | 45.393 | 41.232 | -9,2% | -21,5% | 92.561 | 86.625 | -6,4% |
EBITDA margin (%) - adjusted | 14,1% | 17,5% | 13,4% | 14,1% | 15,3% | 0,0% | ||
Investments ( ** ) | 34.262 | 21.420 | 32.805 | 53,1% | -4,3% | 57.357 | 54.225 | -5,5% |
- 1Q23 and 2Q23: EBIT and EBITDA are adjusted by the amounts of R$6,278 and R$6,806, respectively; and Profit by the amounts of R$6,078 and R$ 6,589, respectively, referring to the recognition of the impacts of the Vila ROMI Residence project.
1H23: EBIT and EBITDA are adjusted by the amount of R$13,084; and Profit by the amount of R$12,667, referring to the recognition of the impacts of the Vila Romi Residence project.
(**) Of the investments made in 1Q23 and 2Q23, the amounts of R$8.4 million and R$22,947 million, respectively, refer to machines manufactured by the Company that were allocated to the machinery rental business. In the first half of 2022 and 2023, R$36,892 million and R$31,558 were invested, respectively.
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Corporate Profile
Founded in 1930, ROMI is a renowned company operating in the Brazilian industrial machinery and equipment market. Over the years, it has emerged as a key manufacturer of rough and machined cast iron parts, establishing itself as a key player in the industry. Notably, ROMI is publicly listed on the B3 exchange's prestigious "New Market" segment, which is dedicated to companies with a strong commitment to corporate governance.
Specializing in an extensive range of machine tools, ROMI manufactures Conventional Lathes, Computerized Numerical Control (CNC) Lathes, Lathing Centers, Machining Centers, Vertical and Horizontal Heavy and Extra-Heavy Lathes, and Drilling Mills. Additionally, ROMI manufactures Plastic Injection and Blow Molding Machines, as well as ductile or CDI gray cast iron parts, both raw and machined.
A distinguishing feature of ROMI's products and services lies in its incorporation of Industry 4.0 technologies across its products and services. These advanced capabilities facilitate the intelligent utilization of data generated by ROMI equipment. The data can be processed internally through built-in artificial intelligence or transmitted via networks (connectivity) to a central analysis site.
These high-quality equipment and solutions are globally distributed and widely adopted across various industrial sectors. Industries such as agricultural machinery, capital goods, consumer goods, packaging, tooling, hydraulic equipment, sanitation, automotive, and wind energy rely on ROMI's machinery for their operations.
ROMI operates a network of thirteen manufacturing units. These units encompass four facilities dedicated to the final assembly of industrial machinery, two foundries, four units for machining mechanical
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Earnings Release
2nd quarter of 2023
components, two units for manufacturing steel sheet components, and one unit for the assembly of electronic panels. While eleven units are based in Brazil, two are located in Germany. The Company's production capacity amounts to approximately 2,900 industrial machines and 50,000 metric tons of castings per year.
Benefiting from its extensive history, diverse product portfolio, and global presence, ROMI has established itself as a trusted leader in the Brazilian industrial machinery and equipment market. The company's unwavering commitment to innovation, quality, and customer satisfaction sets it apart, ensuring continued success and a strong market position.
Current Economic Scenario
Although the year 2023 continues to indicate an unstable environment for investments, both in the domestic and international markets, we can observe a positive trend in the domestic market. The business confidence index shows a gradual recovery, as does the utilization of installed capacity.
In June and July, we observed a gradual recovery in the Industrial Entrepreneur Confidence Index (ICEI), reaching a level of 51.1. However, the world scenario of high inflation and interest rates presents a more challenging environment for making investments, mainly in the foreign market.
Industrial Entrepreneur Confidence Index - ICEI
Source: CNI-ICEI, July 2023
The Installed Capacity Utilization (UCI) index for the domestic industry in general, released by the National Confederation of Industry (CNI), remained stable in the first half of 2023, and in June it reached the level of 69%, showing that industrial activity continues to operate at normal levels.
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Indústrias Romi SA published this content on 18 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 July 2023 21:19:29 UTC.