Fras-le posts fifth-year growth in net revenue consecutive quarter

Fras-le maintains the pace of growth, with new record results achieved for the fifth consecutive quarter. In the third quarter of 2021, the company recorded a 45% increase in net revenue compared to the same period last year, reaching R$ 657.3 million. Gross revenue for the third quarter, without elimination, was R$ 932.5 million, up 44% compared to the same period last year, and gross profit for the period was R$ 203.8 million, a 36% increase over last year. In addition, the company's EBITDA reached R$ 101.5 million, 15.4% on revenue and 7.7% higher than in the third quarter of 2020.

The quarter also marks the first anniversary of the acquisition of Nakata Automotive. According to Fras-le's Director of Investor Relations, Hemerson de Souza, in today's challenging economic context, the result of this milestone, added to other movements and strategies carried out in recent years, reinforces the assertiveness of the plan outlined by the company. "Even with supply difficulties, inflation pressure and misalignment of the global logistics chain, we were able to achieve and maintain good results in the quarter and records accumulated in recent quarters"Highlights.

Driven by the heated aftermarket, sales within Brazil accounted for more than 60% of the company's consolidated net revenue, totaling R$ 395.6 million. In the results of product marketing, with gradual order entry over the three months and increased competition, the third quarter of 2021 was the first period in which light line results were close to the normality identified before the pandemic context. In the commercial line, the strong export demand lengthened the delivery time of orders, and in Brazil, agribusiness continued to boost this market. 

In the international context, foreign market revenues, which add export results to those obtained by operations in other countries, were US$ 50.0 million, which represents an index 28.5% higher than the third quarter of 2020. An important result achieved in the period was the first supply appointment for the bus assembly line (OEM) to Tata Motors, which is among the largest automotive companies in the world.

In the accumulated this year, revenue reached almost R$ 1.9 billion, a 76.4% increase compared to the first nine months of 2020. "Revenue support and quality of results reaffirm the execution of a robust strategy that strengthened the company's position in the aftermarket, offering a comprehensive mix of products and geographic reach of expanded sales", stresses fras-le's CEO, Sergio L. Carvalho. 

Investments
In the third quarter of 2021, the investments made by Fras-le totaled R$ 22.7 million, with emphasis on strategies in international markets in controlled units. In Phrase-le North America, were R$ 3.2 million invested in machinery and equipment to improve productivity and automate processes. In Ask Fras-le Friction, a unit located in India, R$ 3.5 million were invested in the capacity increase. In Brazil, new tools and equipment were added to the caxias do Sul (RS) plant, in the process of continuous improvement of the installed production structure, and at the Controil unit, in São Leopoldo (RS), there was the continuity of the project of a new machining cell for the production of Master Cylinders. 

Also in the quarter, the company presented the new fras-le Smart Composites product line, with the use of lighter and more sustainable composite materials in the production of auto parts, and the constitution of the company NiOne, from the discovery of a new method for obtaining niobium nanoparticles on a large scale, working together with the Randon Technological Center (CTR) and the Hercílio Randon Institute (IHR).

Key Numbers

Photography: Alex Battistel