- The technology and credit products company reported on Wednesday that it had a net profit of BRL 80.65 million from January to March;
- Totvs saw a 40% growth in new service subscriptions in the technology area.
Brazil‘s Totvs, the largest retail management platform in Brazil, posted a 31% increase in first-quarter earnings, boosted by customer gains in software subscriptions and services such as cloud computing.
The technology and credit products company said on Wednesday that it had a net profit of BRL 80.65 million from January to March, up from BRL 61.1 million a year earlier.
Cash generation measured by adjusted earnings before interest, taxes, depreciation, and amortization (Ebitda) soared 49%, to BRL 189.2 million, compared to the first quarter of last year. The margin increased from 21.1% to 26.3%.
The company stated that recurring revenue in the technology area grew 14.6% in the period and reached a historical record of corresponding to 81% of the division’s net sales.
“The main segments that contributed to this growth were Manufacturing, Distribution, Agroindustry and Retail (especially the supermarket sub-segment)”, said the company in the balance sheet.
Totvs saw a 40% growth in new service subscriptions in the technology area.
In the area of credit products, revenue increased by about 4%, but the unit’s Ebitda decreased by 7.7% compared to the last quarter of 2020.
The company had a decrease of about 9% in the provision for losses, while general and administrative expenses advanced 12%, both in the year-over-year comparison.
(Translated by LABS)