Farmers stopped buying silos. Kepler Weber felt it: profit fell 74%
Sales of storage to farms plunged 46.5%. Agro-industry, now 43.6% of revenue, held the company up.
To save you time3
- How much did Kepler earn?
- R$13.4 million in Q3, 74% below the R$51.6 million a year earlier. About a third came from a tax recovery.
- What fell?
- Farm sales: -46.5% to R$73.4 million, due to lower farmer profitability, high rates and tighter credit.
- What held up?
- Agro-industry, up 38% to R$149.9 million, 43.6% of revenue.
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Want a gauge of farmers' cash? Look at silo sales. At Kepler Weber, they fell 46.5%.
The numbers
- Net income: R$13.4 million, -74%.
- Revenue: R$344.2 million, -18.7% year on year (+15.1% quarter on quarter).
- EBITDA: R$26.1 million, 7.6% margin (from 17.4%).
- About a third of profit came from a R$4.4 million tax recovery.
Where it hurt
Farms: revenue of R$73.4 million, -46.5%. Lower profitability, high rates and tight credit make farmers postpone storage.
What held up
Agro-industry: +38% to R$149.9 million, now 43.6% of revenue. Kepler ended with net cash of R$27.4 million.
What I would watch
Silos are the first thing cut when credit tightens. While rural delinquency keeps rising, farm sales won't recover, and Kepler depends on agro-industry to get through.
