Curitiba, November 10, 2021 - Positivo Tecnologia S.A. ("Positivo Technologia" or "Company"; B3: POSI3), one of the largest technology developers and manufacturers based on hardware in Latin America, announces its results for the third quarter of 2021 ("3Q21"). The financial information presented below, except where otherwise indicated, is in accordance with IFRS (International Financial Reporting Standards) accounting standards. Amounts in Reais (R$).
POSITIVE TECHNOLOGY EXCEEDS 2020 TOTAL REVENUE BY 9
MONTHS, WITH NET INCOME UP 3X THAT OF THE SAME PERIOD LAST
Gross Revenue reaches R$2.7 billion year-to-date in nine months, 5% higher than full-year 2020 (+78% YoY) and R$979 million in 3Q21 (+63% YoY).
Strong operating result compared to all periods:(i) LTM EBITDA of R$347 million in 3Q21, a record result; (ii) EBITDA of R$253 million in 9M21, and; (iii) R$89 million EBITDA in 3Q21, up about 29% YoY.
Gross margin of 24.4% in 9M21(+5.8 p.p. YoY) and 23.9% in 3Q21 (+2.7 p.p. YoY),with increased profitability in all periods.
Net income reaches R$54 million in the quarter, 7% higher than the same period last year, and totals R$161 million year-to-date,more than 3x higher than the same period in 2020.
Continued high volume of computer sales on all business fronts, with growth of +58% YoY.
Exclusive partnership to bring Infinix, a brand of Transsion Holdings, to Brazil, in order to manufacture and market devices locally, making Positivo Tecnologia effective in the premium smartphone line.
Agreement signed with Stone in the Payment Solutions area, with a strong pipeline for new acquirers.
Public Institutions unit reaches Gross Revenue of R$761 million in the year (9M21),more than double compared to 9M20. Projects won (contracted and to be contracted) represent more than 1.7 billion in Revenue for the next periods (4Q21 and 2022).
Record revenues in HaaS, one of our Growth Avenues, reporting a 120% increase in the period versus 3Q20.
Growth with controlled indebtedness, ending the period with a Net Debt/EBITDA LTM multiple of 1.0x.
3Q21 EARNINGS RELEASE
POSITIVO TECNOLOGIA S.A.
The largest technology developer
and manufacturer based on
hardware in Brazil.
FINANCIAL HIGHLIGHTS (R$
Adjusted EBITDA Margin
Net Debt / EBITDA LTM2
Does not include non-recurring items and includes equity results of Positivo BGH, of which Positivo Tecnologia holds 50% and has operations in Argentina, Ruanda and Quenia, in addition to the HiLab startup.
EBITDA LTM: R$ 347.6 million in 3Q21 e R$ 106.6 million in 3Q20.
3Q21 EARNINGS RELEASE
MESSAGE FROM MANAGEMENT
We ended these 9M21 of the year advancing in the transformation and revenue diversification process of Positivo Tecnologia. Despite the slowdown experienced in the retail sector in this third quarter of the year, the continued strong demand for hardware, especially in the Corporate and Public Institutions segments, allowed us to close the period with strong growth of 78% in Gross Revenue year-to-date versus the same period of 2020.
According to a new IDC survey, the demand for hardware in the Brazilian computer market is forecasted to reach a level of approximately 8.5 million units in 2021, in line with global growth, but still only 2.5% of the global market, compared to 4.2% in 2012 and 2013. Trends such as hybrid work-study models continue to significantly impact the usage and consumption pattern of laptops, desktops, and servers, and even with the gradual recovery of on- site working in offices and educational institutions, we have noticed the need for technological park renewal.
We continue to diversify our revenues by providing technology services based on its hardware solutions to several market segments, such as in Haas (Hardware as a Service), a segment in which we had record revenues with growth of more than 100% in 12 months.
In the Payment Solutions segment, we signed an agreement with Stone in the quarter for the supply of intelligent payment terminals. With the termination of exclusivity with Cielo, Positivo Tecnologia becomes to gain scale in the Payment Solutions area and to have as addressable market all the acquirers and sub-acquirers in the country.
As recently announced, we entered into a partnership to bring Infinix, a premium smartphone brand from global company Transsion Holdings LTD.CO, to Brazil. The alliance allows for the exclusive manufacture, sale and technical assistance of Infinix Mobile branded smartphones throughout the national territory.
The world's third-largest mobile device company and sixth-largest smartphone company, Transsion Holdings sold more than 174 million mobile devices last year, according to IDC data for Q2 2021. from 70 countries, mainly in Africa, the Middle East and Asia.
Started in 2013, Infinix is one of the fastest growing brands in the smartphone segment in the world, with a presence in more than 40 countries. The new partnership complements Positivo Tecnologia's mobile cell phone portfolio, in the intermediate price range, in line with the strategy of expanding and diversifying our telephony products.
Infinix's operations in Brazil will be supported by Positivo Tecnologia's team of professionals in Curitiba, São Paulo, Ilhéus and Manaus. Consumers of the brand's products will also be able to count on a network made up of 150 specialized technical assistance services throughout the country.
In the Public Institutions Unit, we continue with growing results, delivering by September a Gross Revenue twice as high as 9M20. In relation to projects already won (contracted and to be contracted), we have reached the amount of approximately R$ 1.7 billion for the next periods (ex-ballot boxes 2022), in addition to a very heated pipeline in new tenders to be disputed by the sector.
About the global crisis of integrated circuits, a consequence of the global pandemic (COVID-19), we remain confident about the supply of our products and services through the contracts already signed. We have delivered all our contracted products and services, limiting ourselves only to not meeting additional demands, which would have allowed us to deliver an even more positive result. We also clarify that we have been successful in managing component cost increases without major impacts on our profitability as a company.
Finally, we are very pleased to announce that, for another consecutive year, Positivo was among the computer brands most recognized by Brazilian consumers, according to the Folha de São Paulo's Top of Mind survey, released in October. Top of Mind, held by Folha de São Paulo Newspaper for 31 years, is the largest brand recognized survey in Brazil. The survey was held between August 2nd and 14th, and 7,584 people were interviewed in person. In 2020, Positivo was also among the most recognized brands, in 3rd position, rising to second position this year.
Thus, we conclude these 9M21 with the confidence that in 2021 we will deliver one of the best results in our history. We would like to thank our employees, shareholders, investors, customers, and partners for their trust and reiterate, once again, that we continue working to build strong pillars to remain the leading technology company in the Brazilian market.
3Q21 EARNINGS RELEASE
OUR BUSINESS MODEL
Through a business organization that allows us to ensure a strong presence and solid market share, we were able to consolidate key competences in the development, production and distribution of hardware, services and peripheral software. As shown in the table below, we illustrate how Positivo Tecnologia organizes its Business Units and the breakdown of its audiences and product lines:
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Positivo Tecnologia SA published this content on 10 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 November 2021 23:16:01 UTC.