Randon Companies record historic results in 2019

Acquisitions and partnerships contributed to 20% growth in net revenue for the previous year
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Randon Companies ended 2019 with consolidated net revenue of R$ 5.1 billion, achieving the best result in the company's entire history. The positive performance, which recorded an increase of 20% compared to 2018, was mainly boosted by the positive performance of acquisitions and partnerships made by the company, the strengthening of the transport sector and the improvement of macroeconomic indicators. The company also recorded total gross revenue, before consolidation, of R$ 7.3 billion, an increase of 21% compared to the year consolidated EBITDA of R$ 690.7 million, with EBITDA margin of 13.6%. The net income totaled R$ 247.6 million in 2019, an increase of 63%.

For the company, 2019 was marked by several acquisitions and partnerships, which contributed to the positive result of the period, such as the joint venture that created Randon Triel-HT, the constitution of Randon Linhares and of Suspensys Mexico, and the acquisition of the company Ferrari Indústria Metalúrgica, by Master. According to Randon’s CEO Daniel Randon, the performance presented reinforces the company's strategy in combining the solidity of the organization with the transformation movement it is going through. "We were very pleased with the results achieved in 2019, when Randon Companies completed 70 years of trajectory. Through investments in innovation, market expansion and proximity to our customers, we are increasingly aiming at the future and maintaining the position of protagonists in the segments where we operate", he points out.

In addition, in 2019 Fenatran, the largest freight transport fair in Latin America, which contributed even more to the relevant positioning of Randon Companies in the sector. The company has launched 20 new products, with emphasis on e-Sys, auxiliary electric shaft to be used in road implements, which reduces truck fuel consumption by up to 25%.

Regarding the results presented by the company in the fourth quarter of 2019, total gross revenue, with taxes and before consolidation, totaled R$ 1.8 billion, a 6% increase over revenue obtained in the same period of the previous year. The consolidated net revenue increased 6%, compared to the fourth quarter of 2018, totaling R$ 1.3 billion in the fourth quarter of 2019. The gross profit for the period totaled R$ 304.2 million, an increase of 9% compared to the same period a year earlier. The consolidated EBITDA reached R$ 160.6 million, with EBITDA margin of 12.5%. "These results confirm the company's recovery from the challenges of previous years. We noticed a positive movement in the market and the improvement of macroeconomic indicators in the short term, but we continue with moderate optimism for the coming months," points out the CFO of Randon Companies, Paulo Prignolato.

Vehicles and Implements
In the fourth quarter of 2019, the Brazilian market for road implements grew 23%, with the sales of 15,741 units. Agribusiness remained the main destination of the products of the segment. The company continued the recovery movement of market share, reaching 37% in the quarter, best participation of the year. In addition, the fourth quarter of 2019 was the second best quarter of the year in sales of implements carried out by Randon, with 6,390 units, adding to the national market and foreign market.

The last quarter of the year presented a drop of 8% in truck volumes produced in Brazil compared to the same period in 2018. This is mainly due to a smaller number of days worked taking into account the collective holidays adopted by automakers in 2019 and by the reduction of exports of heavy trucks.
This movement affected sales of the most exposed auto parts to automakers, such as JOST Brasil and Suspensys, which showed a reduction in volumes of 11% and 8%, respectively.
On the other hand, Master and Castertech companies showed volume growth in the same comparison, as they accessed other markets and territories, with an evolution of 2% and 11% in sales of their products, respectively.
The aftermarket, more connected to the subsidiary Fras-le, presented challenges throughout the year, mainly due to the slow recovery of the national light vehicle market.

External market
Throughout the year, the foreign markets where Randon operates have experienced numerous difficulties. In addition to the economic recession faced by Argentina, a market that is one of the most relevant to Brazilian exports, Chile's political and economic crisis, the trade dispute between China and the United States and the stagnation of the European economy were also added. Due to this scenario, in the fourth quarter of 2019, exports, sales made by Brazilian plants abroad, totaled US$ 51.7 million, a reduction of 6% compared to the same period a year earlier.

In the fourth quarter of 2019, Randon Companies invested R$ 57.7 million, most of it in maintenance, expansion and productivity increase, especially Fras-le, which invested R$ 30.6 million in the period, which include the expansion of CTR - Centro Tecnológico Randon and the new laboratory (R$ 4.2 million) and the robotization and automation of the commercial line (R$ 3.1 million). In the year, organic investments totaled R$ 218.1 million and are aligned with the company's Guidance.

Photo: Jefferson Bernardes