Braskem’s net profit fell 37.4% year on year in the fourth quarter amid higher feedstock costs, said the company.
The company reported strong Q4 and FY 2021 results with revenue growth and EPS improvement thanks to its strategic efforts. The growth was attributed to strong gains in both male and female merchandise categories. In addition, with changing consumer trends, the company's considerable growth in online sales from last year implies changes in purchase behaviour among consumers.
The company had a net income of USD83.9 million or USD1.71 per share in Q4 2021. In the third quarter, the company missed earnings estimates with actual EPS of USD1.7 versus estimated EPS of USD2.09. Additionally, for the full year ending January 29, 2022, the company reported a net income of USD254.8 million or USD5.20 per share. On a diluted share basis, the company reported FY2021 earnings of USD5.16.
Cost of goods sold (COGS) in Brazilian reais (R) terms surged by 56% year on year to R21.5bn in the fourth quarter due to higher prices for key petrochemical feedstocks naphtha, ethane and propane in the international market.
Q4 net revenue rose sharply on the back of higher prices for resins and main chemicals in the international market, as well as the higher sales volume of main chemicals.
We remind that Brazilian petrochemical producer Braskem's 450,000 mt/year PP plant in LaPorte, Texas, along the Houston Ship Channel completed its initial commercial production, as per the company's statement as of Sept. 10. "The launch of commercial production at our new world-class PP production line in La Porte clearly affirms Braskem's position as the North American polypropylene market leader," Braskem America CEO Mark Nikolich said in a statement. With a USD750 million investment, the new PP plant's construction started in October 2017 and was completed in June, 2020.
Braskem operates five other US PP plants in Texas, Pennsylvania, and West Virginia, with a cumulative capacity of 1.57 million mt/year that the company acquired. The new plant in La Porte, Texas, is Braskem America's first PP new build.
Braskem S.A. produces petrochemicals and generates electricity. The Company produces ethylene, propylene, benzene, toluene, xylenes, butadiene, butene, isoprene, dicyclopentediene, MTBE, caprolactam, ammonium sulfate, cyclohexene, polyethylene theraphtalat, polyethylene, and polyvinyl chloride (PVC).
mrchub.com