Unipar reported the fourth quarter with key indicators falling – a direct reflection of the low session in PVC and a strong basis for comparison over the past year.
Sales and profits declined before benefits, taxes, consumption, debt redeemers, and profits annually and quarterly – with PVC prices being under pressure and the cost of raw materials putting pressure on petrochemical profitability.
Net sales reached 1.4 billion Brazilian riyals, down 26% from the third quarter and down 28% annually. Profits before services, taxes, depreciation, and amortization reached 281 million Brazilian riyals, down 56% sequentially and 75% on an annual basis.
Net earnings reached 148 million Brazilian riyals, down 25% quarter-on-quarter and 78% year-on-year. “We believed that 2022 would be a year of recovery, but first there was a war in Ukraine, which led to the breaking of supply chains,” CEO Mauricio Rossumanno told The Brazil Journal.
“Inflation rose around the world, then an increase in interest rates occurred, leading to a significant slowdown in civil construction.” This slowdown has affected the price of PVC, which is mainly used in the manufacture of pipes and devices placed directly on the face.
The price of the product has gradually dropped over the year due to this brutal decrease in demand over the year. The caustic soda was already – the company’s other pioneer – high price, but it is not enough to offset the losses with PVC.
The price of soda ash has increased mainly due to the decrease in supply: as it is produced in the same chemical process that uses chlorine (which in turn is used in PVC manufacture), the low demand for PVC can cause some factories in Europa production reduce. , which affects both articles.
The CEO said, “The good news is that even with this opposite scenario [the year], we achieved the highest net revenue and profit before benefits, taxes, consumption, and religion erasure in Unipar’s history.” In that year, Unipar had net sales of 7.3 billion Brazilian riyals, income before services, taxes, consumption, and redeemers of 2.6 billion Brazilian riyals, and net income of 1.3 billion Brazilian riyals.
Each of these measures is offered at around 15% compared to 2021. Morrison explains that this was possible because the company tried to reach new customers – with the strongest entry into new geographic areas – and sold PVC for applications other than civil building applications.
“We’ve sold more to the pharmaceutical and fashion industries, for example. We’ve also gained market share in South America, Europe, and Asia.” Another factor that has contributed to factory skill gains is the result of investment in modernization and technology.
The three Unipar factories – located in Santo Andrei, Gatwo, and Bahia Blanca in Argentina – achieved a consistent level of 84% for the year, up 6 percentage points from the previous year.
In 2019 the usage was 71% and in 2020 it was 76%. Even with the opposite scenario, which should continue throughout the year – the CEO said that Unipar is continuing with its expansion plan to double in size within ten years.
Last year, the company announced the construction of a new chlorine and soda plant in Kamakari, which should be ready in 18 months. It also expands the capacity of Santo Andrés Station by 15% and completes the construction of two solar energy complexes.
“We are also evaluating new projects for new factories in new geographic areas, as well as inclusion and potential acquisitions.” The company has a balance for this. At the end of the fourth quarter, Unipar had a total of 1.4 billion Brazilian riyals for a total debt of 1.3 billion Brazilian riyals.
He said: “We have good room to profit more from the company when good opportunities appear.” The company, controlled by businessman Frank Jayyer Abu Bakr, also announced the payment of 194 million Brazilian riyals in the form of additional profits for 2022, the total amount paid to shareholders per year. The value of the Unipar is 8.3 billion Brazilian riyals on B3.
