ROMI S.A. 2Q22 Earnings Release
July 19, 2022
June 30, 2022 | |||
Share price at 7/18/2022 | Earnings Conference Call broadcast over the web in Portuguese, with | ||
ROMI3 - R$12.04 per share | |||
simultaneous translation into English | |||
Market value | July 19, 2022 | ||
11 a.m. (São Paulo) | 3 p.m. (London) | 10 a.m. (New York) | |||
R$882.9 million | |||
US$162.4 million | https://us02web.zoom.us/webinar/register/WN_INWaJW1kTXSHoXI2XHvaKw | ||
Number of shares | ID Zoom: 820 3245 1919 | ||
Common: 73,333,922 | Dial-in number: +55 (11) 4632-2236 | ||
Total: 73,333,922 | |||
Internationaldial-innumbers: https://us02web.zoom.us/u/kszWE5ZfN | |||
Free float = 50.8% | |||
Earnings Release
2nd quarter of 2022
Santa Bárbara d'Oeste - São Paulo, June 30, 2022
Romi S.A. ("Romi" or "Company") (B3: ROMI3), domestic market leader in the Machine Tools and Plastic Processing Machines markets, as well as an important producer of Rough and Machined Cast Iron Parts, announces its results for the second quarter of 2022 ("2Q22"). Except where otherwise stated, the Company's operating and financial information is presented on a consolidated basis, in accordance with the International Financial Reporting Standards (IFRS)
Statements contained in this release related to Romi's business outlook, projections of operating and financial results and references to the Company's growth potential are mere forecasts and have been based on Management's expectations regarding its future performance. These expectations are highly dependent upon market behavior, the economic situation in Brazil, the industry and international markets. Therefore, they are subject to changes.
Investor Relations Contact
Fábio B. Taiar
Investor Relations Officer
- 3455-9418dri@romi.com
Highlights
Incoming orders of R$480.3M in 2Q22 (+35.8% over 2Q21);
Order backlog reaches R$904.3M at the end of 2Q22 (+36.8% over 2Q21)
-
Incoming orders in 2Q22 exceeded the volume obtained for the same period of
2021 by 35.8%, with growth in all business units. - Incoming orders in 2Q22 at the Romi Machinery Unit grew by 36.5% compared to 2Q21, showing continuous demand in the domestic market and the increase in exports due to the consolidation of the new generations of machines launched in recent years.
- Incoming orders grew by 19.9% at the Rough and Machined Cast Iron Parts Unit in 2Q22 in comparison with 2Q21, given the continued demand for large parts and the important recovery of the other segments served by this business unit.
- Consolidated net operating revenue in 2Q22 reached R$372.1 million, up 5.9% over 2Q21, reflecting the consistent increase in incoming orders observed in recent quarters.
- At the end of 2Q22, the Company's order backlog reached R$904.3 million, an increase of 36.8% in comparison to 2Q21, mainly at the Romi Machines and Rough and Machined Cast Iron Parts business units;
2
Earnings Release
2nd quarter of 2022
Quarterly | Accumulated | |||||||||
R$'000 | 2Q21 | 1Q22 | 2Q22 | Chg. | Chg. | 1H21 | 1H22 | Chg. | ||
Revenues Volume | 2Q22/1Q22 2Q22/2Q21 | 2022/2021 | ||||||||
Romi Machines (units) | 317 | 256 | 294 | 14.8% | -7.3% | 536 | 550 | 2.6% | ||
Burkhardt + Weber (units) | 5 | - | 3 | -40.0% | 5 | 3 | -40.0% | |||
Rough and Machined Cast Iron Parts (tons) | 7,329 | 5,561 | 6,519 | 17.2% | -11.1% | 13,137 | 12,080 | -8.0% | ||
Net Operating Revenue | 351,459 | 285,335 | 372,062 | 30.4% | 5.9% | 574,089 | 657,397 | 14.5% | ||
Gross margin (%) | 32.7% | 30.0% | 28.2% | 33.1% | 29.0% | |||||
Operating Income (EBIT) | 56,045 | 28,565 | 40,345 | 41.2% | -28.0% | 81,420 | 68,910 | -15.4% | ||
Operating margin (%) | 15.9% | 10.0% | 10.8% | 14.2% | 10.5% | |||||
Net Income | 42,819 | 30,504 | 33,000 | 8.2% | -22.9% | 63,563 | 63,505 | -0.1% | ||
Net margin (%) | 12.2% | 10.7% | 8.9% | 11.1% | 9.7% | |||||
EBITDA | 66,486 | 40,059 | 52,502 | 31.1% | -21.0% | 101,915 | 92,561 | -9.2% | ||
EBITDA margin (%) | 18.9% | 14.0% | 14.1% | 17.8% | 14.1% | |||||
Investments ( | 1 | ) | 19,267 | 23,095 | 34,262 | 48.4% | 77.8% | 37,577 | 57,357 | 52.6% |
- Of the investments made in 2Q21, 1Q22 and 2Q22, the amounts of R$11.9, R$14.3 and R$23.7 million refer to machines manufactured by the Company that were allocated to the machine rental business, a new solution launched in the third quarter of 2020.
3
Earnings Release
2nd quarter of 2022
Corporate Profile
Romi, founded in 1930, is the leader in the Brazilian industrial machinery and equipment market, and an important manufacturer of rough and machined cast iron parts.
The Company is listed on B3's "New Market", which is reserved for companies with a higher level of corporate governance. Romi manufactures machine tools (Conventional Lathes, Computerized Numerical Control (CNC) Lathes, Lathing Centers, Machining Centers, Vertical and Horizontal Heavy and Extra-Heavy Lathes and Drilling Mills), Plastic Injection or Blow Molding Machines and ductile or CDI gray cast iron parts, either in raw or machined form. The Company's cutting-edge products and services, which feature Industry
4.0 technologies, enable the smart use of the data generated, whether through built-in artificial intelligence or through the transfer of big data over the networks (connectivity) to a central analysis site. This equipment is sold worldwide and used by a number of industrial segments, such as the agricultural machinery, capital goods, consumer goods, packaging, tooling, hydraulic equipment, sanitation, automotive and wind energy industries, among many others.
The Company has thirteen manufacturing units, four of which for final assembly of industrial machinery, two foundries, four units for machining of mechanical components, two units for manufacture of steel sheet components, and a unit for assembly of electronic panels. Of these, eleven are located in Brazil and two in Germany. The Company has an installed production capacity of approximately 2,900 industrial machines and 50,000 thousand metric tons of castings per year.
4
Earnings Release
2nd quarter of 2022
Current Economic Scenario
Year 2022 continued to indicate a favorable environment for investments, as we can see in the business confidence indices and the use of installed capacity. This recovery in business volume can be noticed in all units, both in businesses in the domestic market and in exports and more recently at the Burkhardt Weber business unit. Although the current level of real interest rates and the prospects indicate its increase and the current exchange rate level represents new challenges to competitiveness of the national industry, the costs, and the global logistics availability, as well as the impacts of geopolitical conflicts continue stimulating the production in Brazil.
In May 2022, the largest fair of machinery and equipment in Latin America, Feimec (International Fair of Machinery and Equipment) returned. The number of exhibitors and visitors exceeded expectations and the business volume also demonstrated the good moment experienced by the industry in general, which had a positive impact on the growth of orders at the Romi Machines Unit in 2Q22.
In view of the more concrete signs of this resumption, the Company prepared itself, especially in relation to orders for raw materials and components along the supply chain, which have allowed us to serve customers in an appropriate and competitive period. Romi is prepared to continue to support its customers by providing high-technology products, within deadlines suitable to the market's needs.
In the foreign market we have also noted a recovery of machine orders, not only for Romi Machines, but also for BW Machines, the latter with relevant orders placed in the last quarters. These orders reflect the economic recovery and, consequently, the growing volume of opportunities both in the Asian continent and in Europe.
The Industrial Entrepreneur Confidence Index (ICEI) continues to show, in 2022, the recovery that started in 2021, and in recent months this index has stabilized at a level considered very positive for new investments.
Industrial Entrepreneur Confidence Index - ICEI
Source: CNI-ICEI, July 2022
5
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Indústrias Romi SA published this content on 19 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 July 2022 22:03:01 UTC.
