Vibra Profits Jumped in 2022


Vibra Profits Jumped in 2022

Vibra Energia’s lubricants business recorded 30% higher profit for 2022 on a 12% increase in sales revenue, while fourth quarter earnings also jumped 30% on a 6% hike in sales, compared to the same period of 2021.

Lubricant sales volumes decreased 4% for the full year and were flat in the fourth quarter.

The lubes business of the Brazilian company had earnings before interest, taxes, depreciation, and amortization of 56 million reals (U.S. $10.8 million) in the fourth quarter, a jump from 43 million reals in the same period in 2021. Gross profit fell 24% to 45 million reals in the quarter, compared to 59 million reals.

Fourth-quarter sales revenue for the lubricants business reached 740 million reals, up from 697 million reals.

For the full year, EBITDA climbed to 372 million reals in 2022, compared to 289 million reals in the preceding year. Sales revenue increased from 2.7 billion reals to 3 billion reals.

The company noted it was putting a greater focus on business profitability through operational efficiency, expansion of its Lubrax authorized distributor network, and offering a range of products and services that allows for a better value proposition for its commercial channels and end customers.

Vibra reported 57,000 metric tons in lubricant sales volume in the fourth quarter, unchanged from the same period in 2021. Sequentially, the company said, fourth-quarter lubricant volume increased 2% from the third quarter, “due to more aggressive pricing and intensification of sales drives, thus returning to a level closer to the pace observed in the first half.”

For the full year, lubricant volume decreased 4% to 231,000 metric tons. “As the total market suffered a contraction of around 5.5% in this period, there was a significant increase in Vibra’s market share compared to the previous year,” the company noted in its earnings release. The company modernized and expanded its lubricant blending plant in 2022. “Among several system and process adaptations, the new automated vertical warehouse is already operating, and is a unique piece of equipment in the lubricant segment in Brazil, accommodating 16,000 pallet positions,” the company stated. “We improved the automation of our filling lines and completed the assembly stage of the new mixing system, which is now in the testing and commissioning phase.”

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