Santos Brasil net income suffers 49.4% drop in first quarter

Santos Brasil, a Brazilian container terminal operator, closed 1Q23 with a net profit of R$ 45.9 million (-49.4% YoY) and a net margin of 10.8%. EBITDA amounted to R$ 153.3 million (-15.0% YoY), with a margin of 35.9% (-5.1 percentage points YoY). During this period, the company’s container terminals handled 261,903 units, a decrease of 14.3% compared to 1Q22.

The performance was significantly impacted by the slowdown in consumer and capital goods imports, a decrease in commodity exports such as coffee, cotton, meat, and others, and a lower flow of cargo transported via coastal shipping.

In addition, the numbers are comparatively low because of the international trade boom triggered by the normalization of the effects of the Covid-19 pandemic in logistics, especially during 4Q21 and 1Q22. For example, compared to 1Q19, the period before the pandemic, 1Q23volumes show an increase of 2.7%.

On the other hand, Santos Brasil Logistics and the Vehicle Terminal (TEV) recorded growth of 39.6% and 12.7% in EBITDA in 1Q23, respectively, compared to the same period last year. Meanwhile, the Itaqui liquid terminals had a positive EBITDA of BRL 0.3 million in its first full quarter of operation.

At Tecon Santos, which represents 88% of the total volume of Santos Brasil’s container movement, the reduction was 14.5% compared to 1Q22, with a highlight on the lower volumes in long-distance operations (-17.4% YoY). Container imports fell by 4.1% YoY, with a highlight on lower imported volumes of chemical and electronic products, reflecting the domestic economy’s slowdown. Exports decreased by 4.8% YoY due to lower shipments of commodities in general. On the other hand, coastal shipping showed a 1.7% volume growth in 1Q23, reinforcing the importance of the Port of Santos in domestic cargo transportation that uses this mode in the country.

See below the exports and imports of containers registered at Santos Brasil’s terminal in the Port of Santos between Jan 2019 and Mar 2023. The data is from DataLiner.

Santos Brasil Terminal | Jan 2019 – Mar 2023 | TEU

Source: DataLiner (click here to request a demo)

Due to the lower rice harvest, the volume at Tecon Imbituba fell by 9.5% (YoY). The volume handled at Tecon Vila do Conde registered a 14.1% YoY decrease, with a reduction in long-distance flow (-14.8% YoY) due to lower wood and animal protein exports and a lower coastal shipping flow (-13.3% YoY).

The movement of general cargo had a 57.6% reduction (YoY) in 1Q23 due to the end of pulp shipments for export at the Imbituba General Cargo Terminal (TCG).

At Santos Brasil Logistics, the number of containers stored in 1Q23 was 13.4% lower than in 1Q22, reflecting the decrease in imports at the Port of Santos.

However, the Distribution Centers recorded a 20.1% increase in pallet movement in 1Q23 due to the growth of 3PL integrated logistics operations compared to the same period last year.

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