Fras-le closed the first half of 2020 reaching net revenue of R$ 620 million, an important result for the company, especially in the midst of the challenging scenario caused by the Covid-19 pandemic. In the same period, revenue stemming from the foreign market grew 2%, compared to the previous year, reaching R$ 336 million. EBITDA was R$ 80 million, an increase of 13% compared to the first half of 2019.
In relation to the figures for the second quarter of 2020, Fras-le recorded net revenue of R$ 280 million, 17% lower than in the second quarter of 2019. EBITDA decreased by 0.1%, compared to the same period last year, totaling R$ 42 million. According to the company's Director of Investor Relations, Hemerson De Souza, the second quarter of 2020 was the period in which the company most felt the impact of the pandemic. "The scenario of market uncertainties, outages and difficulties in some customers' operations have made these months the most challenging for our business. In June, demand reached levels very close to those recorded before the pandemic, contributing to moderate optimism for the coming quarters," he said.
Fras-le's favorable performance was driven by the company's in the aftermarket sector, especially the heavy line, in which fleet owners, mainly food and medicine, did not stop due to the pandemic. In addition, the diversification of both the product mix and the company's geographic performance, which directs its sales to more than 100 countries, contributed positively to the results achieved.
"We have seen significant improvements in the automotive industry, particularly in the replacement segment and in the heavy vehicle area. After the most critical months, we are confident that our moderated reduction scenario will prevail for this year. With all the injection of stimulus into the domestic economy and all the major economies of the world, in addition to the potential for a vaccine for Covid-19, we believe that we will have a more normal and robust 2021", stresses the CEO of Fras-le, Sérgio Carvalho.
Since the beginning of the Covid-19 pandemic, Fras-le has been carrying out to protect the health of its employees and family members, to ensure the continuity of operations and to contribute to the functioning of the local and global economy. "We remain committed and focused on strengthening our health initiatives with more than 3,500 globally based employees. The attention to the safety of our people will always be the priority for the company. In addition, through our Contingency Committee, we are attentive to the consequences and impacts of the pandemic in the markets and in our business, so that decisions are made quickly and assertively", Carvalho reinforces.
In the second quarter of 2020, investments totaled R$ 11.4 million, the main ones: R$ 2.7 million at Fras-le's unit in Caxias do Sul, intended for machines, equipment, tools, molds and safety adjustments of the NR-12 standard. At Fremax, investment values totaled R$ 4 million, most of which were used to expand the foundry's capacity. In relation to investments in controlled units abroad, Fras-le North America stands out, with an investment of R$ 0.7 million related to tooling and retrofit in machines.
Acquisition of Nakata Automotive
The largest movement of mergers and acquisitions in Fras-le's history, the purchase of Nakata Automotiva, disclosed to the market on December 17, 2019 was approved by the Administrative Council of Economic Defense (CADE) on July 3, 2020 and by the Company's shareholders through an Extraordinary General Meeting held on July 23, 2020. The closing of the operation still depends on meeting the preceding conditions provided for in the Contract for the Purchase and Sale of Shares and is expected to occur within the third quarter of 2020.