Marcopolo S.A. ended 2019 with a growth of 2.8% in relation to the previous year. The largest bus frame manufacturer in the Americas and a leader in mobility solutions recorded a record net revenue of BRL 4.314 billion, compared to BRL 4.197 billion in 2018. Demand from the Brazilian market caused the company’s business in the country to increase 17.6%, from BRL 1.916 billion in the previous year to BRL 2.252 billion, and represented more than half of the net revenue (52.2%). Net income also increased 11.1% and hit BRL 212 million.
Marcopolo’s consolidated global production totaled 15,741 units, 2.2% less than the 16,103 manufactured in 2018. Of this total, 13,330 units were produced in Brazil and the remaining 2,411 units abroad. According to José Antonio Valiati, CFO and Investor Relations director at Marcopolo, despite the growing performance of the manufacturer, 2019 was marked by the unstable demand.
“The supply to customers in the Brazilian market grew 2.9% (10,532 units), but did not compensate in volume for the 24.1% drop registered in exports (2,881 units). In the country, the volume recovery process was slowed by the lower demand for road buses with higher added value and fewer deliveries to the federal program Caminho da Escola [The path to school]. In exports, there was a 25.4% drop in business (BRL 1.015 billion compared to BRL 1.360 billion in 2018) and demand was affected by crises in the main South American markets and lower volumes sold to the African continent”, comments.
In operations abroad, Marcopolo achieved growth in both revenue and production volume, with BRL 1.046 billion (13.6% increase compared to BRL 921 million in 2018) and 2,411 units manufactured (compared to 2,145 the previous year), an increase of 12.4%). Marcopolo México, Superpolo (Colombia) and Volgren (Australia) were the positive highlights, with increasing results. While the first two increased production and results compared to 2018, the Australian operation, despite decreasing volumes, managed to reverse the losses of the previous year.
Leadership in the Brazilian market
In 2019, Marcopolo maintained its market leadership, ending the year with a 49.8% share. The result is a reflection of the strategy adopted in the last two years of strengthening the relationship and performance with customers, creating innovative solutions, and offering a broad product mix, with a wide sales network and after-sales service.
The road and micro segments demonstrated the brand’s strength, with a share of 67.9% and 58.1% respectively. The presence in urban vehicles, with a market share higher than the historic (39.6%), and in minibuses (Volare) were also highlights, with a growth of 9.7% (3,929 units compared to 3,583) and 7% (2,305 vehicles compared to 2,154 vehicles, in 2018), respectively.
Growth in 2020
Marcopolo’s prospects for 2020 are for growth, with the continued increase in demand in the domestic market, recovery of exports and better results in practically all international operations. In Brazil, the basic interest rate at its lowest historical level and the confirmation of the expected economic growth, should allow the continuation of fleet renewal programs in all segments.