Photo: automated cathode production process (primary copper) at the Paranapanema’s Dias d’Ávila unit.

(04/29/2021) Paranapanema, like many companies in the domestic and international markets, still faces challenges related to the COVID-19 global pandemic with great effectiveness in its preventive actions. Additionally, the Company remain working to equalize its financial debt profile in order to match its future cash generation and need for investment.

The 1Q21 was marked by a series of positive results for the Company, which continues to focus on cash generation through cost efficiency and working capital management. Thus, it reported operating cash generation of BRL 13 million in 1Q21. Also, in the first quarter of this year, Paranapanema reported a net loss of BRL 402.3 million, severely impacted by the non-cash effect of the exchange rate variation mainly on its foreign currency debt – which, if excluded, reverts to adjusted net income of BRL 33.7 million in the period.

The Company registered a reduction of BRL 9.2 million in fixed costs and general administrative and selling expenses, closing the first quarter of this year with an amount of 6% lower compared to the fourth quarter of 2020. Paranapanema also presented a Net Revenue of BRL 1.3 billion, an increase of 44% compared to the same period of the previous year.

“Due to the debt renegotiation process, we remain to prioritize operating cash generation in 1Q21. The main update of this quarter is that we were able to practically double the use of recycled material in our production process compared to the first quarter of the last year, which contributes both to the environment and to working capital efficiency”, comments Luiz Aguiar, the Company’s CEO.

In accordance with the good practices of sustainable production and circular economy, Paranapanema has increased its use of recyclable raw material in the production process, which went from 8.8% in the first quarter of 2020 to 16.6% in 1Q21. Combined with reductions in metallurgical losses in the process, this represented a gain of BRL 11.3 million as well as a two-day improvement in the company’s cash conversion cycle.

About Paranapanema
Paranapanema S.A. is the only domestic producer of primary copper, responsible for the production and marketing of cathodes, rods, wires, laminates, bars, tubes and connections made of copper and its alloys. The company closed the year of 2020 with revenues of BRL 4.3 billion, having exported its products to approximately 20 countries. The company was founded in 1961 and has been a publicly-held company since 1971, integrating B3’s Novo Mercado since 2012. Paranapanema has three industrial units: Dias d’Ávila (Bahia), at the Camaçari Industrial Pole, Santo André (São Paulo) and Serra (Espírito Santo) and generates about two thousand direct jobs.

Press Contacts
Mayara Bertacini – +55 11 99946-8291 | mayara.bertacini@paranapanema.com.br
Bruno Badari de Almeida – bruno.badari@paranapanema.com.br