INSUBCONTINENT EXCLUSIVE:
The company cited operational disruptions, pricing adjustments, and market challenges as key factors behind the weaker results.Net income
for the year fell 27.3% to R$646 million ($108 million), compared to R$888.7 million ($148 million) in 2023
EBITDA dropped by 16.4%, reaching R$1.2 billion ($200 million), with the EBITDA margin narrowing to 12.4% from 13.2% a year earlier
Revenue also declined by 10.9%, totaling R$9.6 billion ($1.6 billion) versus R$10.8 billion ($1.8 billion) in 2023.The company attributed
the revenue contraction to a 1.8% decline in sales volume, which reached 1.7 million tonnes, and a 9.8% drop in average product prices to
Operational challenges during the implementation of a new SAP system in Q1 and reduced demand following mid-year price adjustments further
exacerbated the situation.M
Dias Branco Reports Sharp Declines in 2024 Earnings Amid Operational Challenges
(Photo Internet reproduction)Core product categories, including biscuits, pasta, and margarine, saw an 11% revenue decline to R$7.52 billion
Milling and oil refining segments experienced a sharper drop of 14.5%, generating R$1.66 billion ($277 million) in revenue
However, adjacencies like cakes, snacks, and sauces grew by 8.9%, contributing R$481.9 million ($80 million).Despite these setbacks, M
Dias Branco retained its leadership in key markets such as biscuits and pasta while increasing its market share in biscuits (from 31.8% to
32%) and flour (from 10.7% to 11.9%)
Pasta market share dipped slightly from 28.9% to 28.8%.M
Dias Branco Reports Sharp Declines in 2024 Earnings Amid Operational ChallengesCapital expenditures decreased by 17% to R$304.4 million ($51
million) in 2024, with investments focused on machinery upgrades to enhance efficiency
In Q3 alone, revenue fell by 12% year-over-year to R$2.4 billion ($400 million), while net income dropped by 52% to R$124.6 million ($21
million), reflecting narrower profit margins of just 5.2%.Analysts noted that both revenue and earnings missed expectations for the quarter
company plans to leverage its market position while addressing operational inefficiencies and focusing on high-margin product categories
