Marcopolo ended the first quarter of 2023 with results that reinforce the trajectory of recovery of volumes in the bus market. In the period, the company had net revenue of BRL 1.65 billion, an increase of 72.5% compared to 1Q22.
Consolidated net income was BRL 236.3 million in 1Q23 with a margin of 14.3%, against the result of BRL 98 million and a margin of 10.2% in the annual comparison. Gross profit was BRL 390.9 million in the first quarter of this year, with a margin of 23.6%.
Production was 3,465 units in 1Q23, 12.4% more than 1Q22. In Brazil, 2,975 units were produced, an increase of 9.6% compared to 1Q22. Marcopolo’s market share in Brazilian body production was 50.1%, maintaining the national leadership.
“The period was positive, mainly due to G8 sales, which represented over 70% of the company’s heavy road vehicles. In addition, the charter sector continued to perform well. In urban areas, we had a growing environment in sales volume, driven by the return of face-to-face work, as well as the application of subsidies and direct investments from municipalities”, states André Armaganijan, CEO of Marcopolo.
Performance in the micro bus segment also stood out in the period, with sales to the government and deliveries to the federal school bus program Caminho da Escola. The company delivered 601 urban, 489 micro and 170 Volare buses (totaling 1,260 units) for the program, referring to the 2022 bid.
Marcopolo invested a total of around BRL 37.1 million in its operations in the first quarter of this year. EBITDA was BRL 292.8 million in 1Q23, with a margin of 17.7%, versus 51.3 million and a margin of 5.4% in 1Q22.
“This result demonstrates a better market environment, with the evolution in volumes and the sales mix, positive margins as a result of the greater dilution of expenses and recovery of results of operations located abroad”, the executive states.
Abroad, Marcopolo’s production was 490 units, 32.8% higher than the same period of the previous year. “After a difficult year in 2022, international operations demonstrated a recovery in results, with sales growth in all units”, André states.
The main highlight of 1Q23 was Marcopolo México‘s performance, with sales of higher value-added products, reversing a loss of BRL 2.4 million in 1Q22 to a positive result of BRL 11.4 million. In Marcopolo South Africa, consolidated production increased 176% in 1Q23 compared to 1Q22.
Euro 5 / Euro 6 transition
Despite the transition of the engine from the Euro 5 to the Euro 6 standard, with an increase in the price of the chassis, customers in the domestic market continue to show interest in renewing their fleets, opting for vehicles with greater value added in resuming long-distance travel and in the revitalization of public transport systems.
At the end of the first quarter of this year, the company completed the succession process of its CEO. The position, formerly held by James Bellini, was passed on to André Armaganijan, who held the position of Director of International Business and Commercial Operations Foreign Market. James now acts as Chairman of the Board of Directors. The succession also involved the position of CFO, formerly held by José Antonio Valiati, who remains on the Executive Board of Investor Relations. The CFO position is now held by Pablo Motta.
The new management aims to deepen the initiatives already underway, including the exploration of synergies between the company’s operations, discipline in the allocation of resources, the optimization of investments, the development of innovative products and business segments, the preparation of people for the future and the ongoing search for greater efficiency.
It also aims to improve strategic fronts such as the role of electric buses and the development of the North American market in favor of sustainability and consistent results.