Tupy reports the highest annual net earnings in its history: R$ 502 million in 2022

Tupy reports the highest annual net earnings in its history: R$ 502 million in 2022

Highlights:

• The Company’s revenues totaled R$ 10.2 billion in 2022, 44% more than the amount in 2021. In 4Q22, revenue was R$ 2.6 billion, 26% more than the same period of the previous year.

• R$ 402 million was generated in cash in 2022, 24% more than 2021. The cash generated in 4Q22 was the highest in the Company’s history for one quarter: R$ 426 million.

• Adjusted EBITDA of R$ 1.3 billion in 2022, an increase of R$ 390 million compared to 2021. In 4Q22, adjusted EBITDA was R$ 250 million, an increase of 23%.

• The Company recorded the highest annual net earnings in its history, reaching R$ 502 million in 2022, an increase of 148% compared to the amount in 2021. In 4Q22, R$ 56 million was recorded.

With record-breaking results, Tupy (TUPY3) ended 2022 with significant results: net earnings of R$ 502 million, revenues of R$ 10.2 billion and an adjusted EBITDA of R$ 1.3 billion. Between 2019, the period before the pandemic, and 2022, net revenue went from R$ 5.2 billion to R$ 10.2 billion, a jump of over 96% in just three years. In the same period, adjusted EBITDA grew by 80%.

With the integration of operations located in Aveiro and Betim, the Company’s customer base increased. Today, Tupy supplies major truck, agricultural and construction machinery manufacturers in the West. A little over a year after the acquisition, many synergies have been achieved, expanding operational efficiency and competitiveness.

Even without the effects of the Company´s acquisition of MWM, consolidated at the end of last year, the progress in results reflects a significant evolution in line with the construction of Nova Tupy, which marks the Company’s largest transformation over its 85 years of existence. Based on a new strategic architecture, with growth aligned with opportunities to expand value generation, through Manufacturing Contracts and the low-carbon economy, which will play a key role in Tupy´s future.

New manufacturing contracts

The acquisition of MWM enabled Tupy to secure a unique position in the world, offering complete and economically efficient solutions for the capital goods industry. The combination of knowledge, capabilities and the strength of the MWM brand allowed the Company to expand the scope of its manufacturing contracts, which includes the assembly of engines for third parties and associated engineering services, in addition to machining. In a Material Fact released last week, the Company has already announced the first contracts that will enter into force in 2024 and that total additional revenues of R$ 650 million per year, when they reach maturity.

The addition of these new items to Tupy’s portfolio reflects production localization movements, which occur in North America due to the USMCA, but also in Brazil and surrounding regions.

The products and services included in these contracts will be produced at Tupy’s plants in Mexico and Brazil. For this, in the next three years, approximately R$ 340 million should be invested in order to prepare and expand the operations to meet the growing demand for high value-added services. This value includes investments in new technologies to accelerate the digital transformation of operations.

Energy and Decarbonization: scalable business

Another highlight resulting from the acquisition of MWM is the contribution that the Company will generate to energy and decarbonization initiatives, with emphasis on mobility and energy generation solutions through the use of biofuels.

In road and urban transport, for example, there are already projects underway to transform the truck and bus fleets of large Brazilian companies. In the energy segment, MWM uses its knowledge in biofuels, engines, generator sets and biotechnology to offer complete solutions, which include the use of municipal solid waste and agribusiness waste to generate electricity and produce biofuels.

The recently announced partnership with the Primato cooperative is already the first phase of a project in this line with high scalability potential. With an initial investment of approximately R$ 9 million, the initiative covers 13 properties, which will be serviced by a biogas plant to be installed in Ouro Verde do Oeste, in the state of Paraná. Also planned is the vehicular transformation of the current fleet, which will replace the use of diesel engines with biomethane.

“We are proud to have achieved significant results and significant progress in our strategy. We remain focused on our long-term vision aimed at returning and generating value for our customers, collaborators, investors and society, structuring a Company that will be increasingly relevant in the transition to a low carbon economy”, Fernando de Rizzo, CEO of Tupy, emphasizes.

About Tupy

 A Brazilian multinational company that develops and produces structural components in cast iron of high geometric and metallurgical complexity. These engineering solutions are applied in the transportation, infrastructure, agribusiness and energy generation sectors and contribute to people’s quality of life by promoting access to health, basic sanitation, drinking water, food production and distribution and global trade. Its production is concentrated in Brazilian factories, in Betim/MG and Joinville/SC, and abroad, in the cities of Aveiro, Portugal, and in Saltillo and Ramos Arizpe, Mexico. In addition, it has commercial offices in Brazil, Germany, Italy and the USA. www.tupy.com.br