Industrial conglomerate Ultrapar had a profit of BRL 836 million in the fourth quarter of 2022, more than double the positive performance of BRL 390 million obtained a year earlier, according to a balance sheet released the night before.
The result was supported in part by the booking of “extraordinary” tax credits at the fuel station units, Ipiranga, and gas distribution, Ultragaz, in addition to lower financial expenses.
The company found an operating performance measured by earnings before interest, taxes, depreciation and amortization (Ebitda) of R$ 1.83 billion, an expansion of 54% compared to the fourth quarter of 2021.
But in recurring terms, the adjusted Ebitda retreated 29%, to R$ 750 million, said Ultrapar in the balance sheet. The company overhauled its operations in 2022, with the sale of units that included specialty chemicals producer Oxiteno in April.
Analysts, on average, had expected net income of R$145.8 million for the fourth quarter of Ultrapar, according to data from Refinitiv. For Ebitda, the expectation was R$ 786 million.
The group’s main business unit, Ipiranga, increased sales volume by 7% in the last three months of last year over the same period in 2021, and recurring adjusted Ebitda fell by 41%. Including the effect of tax credits, of R$ 638 million, the line had an evolution of 53%.
Ultrapar stated that the drop in Ipiranga’s recurring Ebitda was due to “more pressured margins, resulting from the greater supply of products on the market and inventory losses, in addition to higher expenses with ‘CBios’, despite the greater sales volume”.
The group ended 2022 with leverage of 1.7 times compared to 2.9 times at the end of 2021.
Source: CNN Brasil
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
