Gerdau (GGBR4) profits R$ 1.25 billion in the 1st quarter, a drop of 47.9%; company announces dividends

Gerdau (GGBR4) reported adjusted net profit of R$1.25 billion in the first quarter of 2023 (1Q24), an amount 47.9% lower than that reported in the same period in 2023, the steel company reported this Thursday (2) .

The company explains that the result was “impacted by lower margins and sales volumes”.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) totaled R$2.813 billion in 1Q24, a decrease of 34.9% compared to 1Q23.

The adjusted Ebitda margin reached 17.4% between January and March this year, down 5.5 pp compared to the margin recorded in 1Q23.

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Gerdau: results

Net revenue totaled R$16.210 billion in the first quarter of this year, a drop of 14.1% compared to the same stage in 2023.

Gross profit reached R$2.4 billion in the first quarter of 2024, a decrease of 33.3% compared to the same period in 2023. Gross margin was 14.9% in 1Q24, a drop of 4. 3 pp compared to the 1Q23 margin.

General and administrative expenses totaled R$501 million in 1Q24, a decrease of 6.9% compared to the same period in 2023.

The net financial result was negative R$476 million in the first quarter of 2024, an increase of 852% over the financial losses in the same stage of 2023.

On March 31, 2024, the company’s net debt was R$11.040 billion, a reduction of 10.0% compared to the same stage in 2023.

The financial leverage indicator, measured by net debt/adjusted EBITDA, was 0.40 times in March/23, an increase of 0.09 pp compared to the same period in 2023.

The Board of Directors of Gerdau (GGBR4) and the Metalúrgica Gerdau holding (GOAU4) approved the distribution of dividends in the amount of approximately R$785.2 million. Of the total, R$589 million goes to Gerdau shareholders and R$196.2 million to holders of shares in the holding company.

The amount per share for Gerdau is R$0.28 and R$0.19 for Met. Gerdau.

Payment to Gerdau shareholders will be made from March 27, 2024 and on May 28 for Met shareholders. Gerdau, based on the share position on May 15th of this year.

Therefore, from May 16, 2024, inclusive, trading of these shares on the Stock Exchange will be carried out ex-right (i.e., those positioned from this date onwards will not be entitled to the proceeds).