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Thursday, September 29, 2022

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    Braskem (BRKM5) reverses profit and records a loss of R$ 1.4 billion in 2Q22, with foreign exchange losses

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    Combo of problems: Braskem suffered from lower revenue, higher costs and currency impact (Image: Disclosure / Braskem)

    THE Braskem (BRKM5) presented consolidated net loss attributable to shareholders of R$ 1.4 billion in the second trimesterin contrast to the profit of R$ 7.4 billion in the same period last year.

    The result is due to both the deterioration of operating lines and heavy foreign exchange losses.

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    Net revenue decreased 4% in the same comparison, totaling R$ 25.4 billion. At the same time, the cost of goods sold jumped 28% to R$21.3 billion. As a result, gross profit dropped 58% to R$4.1 billion.

    The erosion of results continued with the increase in operating expenses, which led the operating profit before the financial result to plummet 82%, from R$9.1 billion to R$1.7 billion.

    Braskem suffers from exchange rate variation

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    The net financial result also put pressure on Braskem, as it closed June with a negative balance of R$ 3.4 billion. In the same period last year, this line was positive by R$ 957 million.

    The main villain of this account was the net exchange rate variations, which were negative by R$ 2.4 billion. Twelve months earlier, this result was positive by R$ 1.8 billion.

    Another item that should not please the market is the recurring Ebitda of R$ 802 million. The figure is 13% lower than the comparison.

    The company also ends the quarter more indebted. The adjusted net debt to recurring Ebitda ratio rose from 1.10x to 1.22x.

    See Braskem’s 2Q22 results report, released this Wednesday (10).

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    Source: Moneytimes

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