The economic situation and the scenario of high interest rates plus inflation made Sequoia (SEQL3) adjust its operations to continue growing. The company, focused on logistics in the consumer sector, went after smaller customers and readjusted prices in the first half of this year.
Bruno Henrique, co-founder of Sequoia and director of operations (COO), says there is room for growth, especially in B2B (deliveries to companies) and B2C (deliveries to the final consumer) heavy in the Northeast, in addition to expanding inorganic material, via acquisitions of other companies.
He participated in Inside the Resultsa project in which the InfoMoney interviews CEOs and directors of important publicly traded companies, in Brazil or abroad. Executives talk about Q2 2022 balance sheet and outlook. To follow all the interviews in the series, subscribe to the InfoMoney YouTube channel.
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Between April and June 2022, Sequoia presented adjusted net income of R$ 7.8 million, a decrease of 55.8% compared to the same period last year. But the company’s operating numbers showed growth.
Earnings before interest, taxes, depreciation and amortization (Ebitda) grew 58.3% in the annual comparison, to R$ 75.8 million. On the same basis of comparison, net revenue grew 34.6%, to R$ 496.4 million.
As a result, the company’s shares rose by more than 6% this Friday (12), but closed with a milder rise of 5.59%, at R$7.36 each.
“When you go to the smallest customer, you have to have a much more dispersed strategy. It’s open sea. You access it through various channels, through social networks, through digital channels, physically with a sales force, with an internal sales force, with inside sales via phone calls, it is a very different mechanism that we are using to be able to access these customers” , said the COO.
The executive explained that the purchase of Frenet in 2021 helped Sequoia get closer to smaller customers. The subsidiary has 53,000 customers on its platform. “It’s one of our main sources of small client access. This customer hall is a very rich vertical for Sequoia to grow in the coming years. But it is natural that she will live with large customers, who are very important and will continue to be very important in our strategy”, said the director.
“We have intensified a lot and we must increasingly intensify our presence, our strength and protagonism in the Northeast. It is a very relevant region for us, with large states, many municipalities and little service. So, it is a region that we are naturally focusing on and investing more in”, added Henrique.
Fernando Stucchi, CFO and director of investor relations at the company, spoke about the transfer of prices practiced by Sequoia to customers. “Our strategy, last year, of having absorbed a little more this high cost for the company and not having passed it on to customers, now reflects in this changed hand, in this two way”, he said.
“If you look at the second quarter of last year, when we had a slightly worse gross margin than usual, when we had the first boom in inflation, Sequoia ended up helping a lot of customers. (…) And now the hand has returned. It was easy to talk to customers because we have long-term partnerships,” added the CFO.
Henrique and Stucchi also talked about risks to the business, such as the verticalization of large clients, about ESG policies, shareholder remuneration, possible M&A movements (mergers and acquisitions), about the strategy asset light, on the possible privatization of Correios and the incorporation of companies already acquired. Watch the full live above, or Click here.
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