Camil (CAML3) has a 6.9% drop in profit in the 3rd quarter of 2021, to R$ 120.2 million

Camil (CAML3) recorded a net income of R$120.2 million in the third quarter of 2021, a decrease of 6.9% compared to the same period in 2020.

Earnings before interest, taxes, depreciation and amortization (Ebitda) totaled R$ 200.7 million between September and November, a reduction of 15.3% in the annual comparison. The Ebitda margin (Ebitda over net revenue) reached 8.8%, with a drop of 3.1 percentage points.

Net revenue rose 14% to R$2.3 billion in the quarter, mainly driven by a 15.3% increase in sales in Brazil.

According to the company, the result was driven by sugar prices, as well as higher overall volume.

Gross profit totaled R$471.7 million in the quarter, up 0.6% year-on-year. Gross margin was 20.8%, down 2.8 percentage points.

Camil’s net debt ended 2021 at R$1.7 billion, with a leverage ratio (net debt over Ebitda) of 2.3 times.

For Itaú BBA, Camil reported healthy rice volumes, while mergers and acquisitions remain the main driver.

Itaú BBA highlights that Camil’s adjusted Ebitda in the period was 2% above estimates, with an Ebitda margin of 8.8% (versus 8.7%). Rice volumes in Brazil increased year on year as the third quarter 2020 comparison base was negatively affected by high retail inventories, while international volumes continued to suffer from lower raw material availability in Uruguay.

The bank maintains a market perform assessment (performance in line with the market average) for Camil, and a target price of R$ 11.00, compared to the quotation on Thursday (13) of R$ 11.05.

CONTINUE AFTER ADVERTISING

Purchase opportunity? XP Strategist Reveals 6 Cheap Stocks to Buy Today. Watch here!

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

Check Also

check the payment calendar for the month of February

The payment schedule for the third installment of the Brazil aid it’s about to end. …