May 21, 2022

The Catholic Transcript

Complete News World

Businesses in the United States MRV & Co's profit grew 54% in the 4th quarter

Businesses in the United States MRV & Co’s profit grew 54% in the 4th quarter

By Alucio Alves

SAO PAULO (Reuters) – MRV & Co posted a strong fourth-quarter profit increase as strong sales of its US unit offset inflationary pressures on the efforts of Gaza Verde and Amarella in Brazil.

The real estate group announced this Wednesday that its total profit for October-December was 336.2 million rice, an increase of 54% over the same period in 2020.

Net income for the quarter grew 12% year-on-year to $ 1.9 billion.

But the “other operating income” range, which includes the performance of its AHS unit in the United States, rose 418% to 337 million, representing strong sales. Of the two developments that took place in the United States in December, the company sold $ 149 million, with the total range ranging from 37% to 51%, much higher than the company expected.

As a result, pre-tax income, calculated as a result of interest, depreciation and depreciation (Ebitda), rose 60.3% year-on-year to $ 524 million in the quarter. The margin was up 8.3 percentage points to 27.5%.

The average estimate of analysts consulted by Refinitiv for MRV’s Ebitda is 294.2 million rice.

According to the report, MRV has been allowed to sell at a lower discount than expected due to strong demand in the United States. In addition, the company benefited from higher rental costs.

Rafael Menin, co-chair of the MRV, estimates that sales should remain strong, even as the monetary tight cycle begins in 2022 in an effort to control inflation in the United States. As a result, the group will gradually invest more in the market than Brazil in the coming years.

See also  Abramovich is not poisonous, US intelligence says citing 'environmental factor' to symptoms | Ukraine and Russia

“Our expectation is that by 2024, AHS will be able to represent 65% of the panel’s decisions,” Maine told Reuters. Today’s less than a third of business’s total revenue.

US list

With this horizon, AHS will have to work with a group of investors to carry out this year’s banned fundraising. He said the move was part of preparations to list the company’s shares in the U.S. stock market, which has not yet had a date.

According to the executive, the positive performance of the AHS, along with its other logo (rental) and urba (subdivision) units, should offset the weakness of the popular real estate businessman Gaza Verde e Amarela, which still represents 55% of the business. M.R.V.

According to Menin, the Caixa Econômica Federal, with 20% accumulation of inflation in Brazil over the past two years in the civil construction sector, has not translated into the same intensity as the financial values ​​invested. The sector has lost the appeal of construction companies.

“The company estimates the longevity of the compressed total range in Gaza Verde and Amerella products,” he said.