Universo do Seguro - 09/19/2023
By Writing Team
Posted in September 19, 2023
Market recovery in the waste management sector and increased revenue at Ambipar Response drove a 67% growth in EBITDA and a 41% increase in the company’s net revenue.
Ambipar (B3: AMBP3) presented record financial results in the second quarter of 2023 (2T23). Net revenue and EBITDA margin reached their best values since last year, with quarterly growth in all business units. Ambipar Group’s net revenue in the second quarter of 2023 was R$ 1.14 billion, a 41% increase compared to the same period in 2022, also considered a record since last year.
EBITDA jumped from R$ 220.8 million in the second quarter of last year to R$ 369.8 million in the same period of 2023, representing a growth of over 67%. Compared to the previous quarter, the increase was 27.2%.
According to Thiago Costa, CFO of Ambipar Group, the positive results can be partially explained by the slight recovery in demand for waste management and valorization from the Ambipar Environment business unit, and revenue growth from the Ambipar Response unit, with operational improvement and a focus on cash generation.
“In the first quarter of the year, especially in the post-election period, the market showed caution and slowdown due to investment risk aversion and fiscal uncertainties. In the second quarter, we see a slight recovery as expected, with a more active sector continuing its investment cycle and increasing demand from our customers, especially in the industrial sector,” said the company’s CFO.
In the Ambipar Environment division, starting from the first quarter of this year, facing a challenging macroeconomic scenario, the Ambipar Group exercised greater caution in inorganic investments, slowing down the pace of acquisitions, which had been a significant hallmark of its performance since the IPO in 2020.
With the likely resumption of investments in the industrial sector and Ambipar’s position in solutions that decarbonize and promote the circular economy, the industry increasingly demands services provided by Ambipar, which has sought to consolidate its position as a reference in environmental services.
In the Ambipar Response segment, the teams in Brazil and Canada stood out, delivering excellent results in Industrial Response and Emergency Response areas, with margin and revenue growth from the broad platform of industrial services and emergency response with hazardous products.
Facing a more positive economic scenario and strong operational results, Ambipar reduced leverage by 0.5 times compared to the first quarter of 2023, with a availability of R$ 3.2 billion. Additionally, the more positive outlook for investments in industrial services, environmental protection, waste management and valorization, decarbonization, and emergency response brought a better scenario, with positive expectations for the coming quarters.
“Over the past three years, we have built a unique position by allocating capital swiftly. We are managing the leverage of this strategy throughout 2023. We maintain financial management with a greater margin of safety, with careful planning of the debt profile and clear strategies for increasing cash generation. The recent reduction in interest rates by central banks enhances our cash generation and will help in this process,” explains Thiago Costa, the company’s CFO.
