Large companies to increase investments regardless of Covid-19
Most companies that have disclosed their investments for 2021 plan to increase them compared to last year. Despite the worsening of the Covid-19 pandemic in recent weeks in Brazil, they have not revised these plans, at least so far.
This is a finding from a survey conducted by Valor with 88 public companies that released their results until Wednesday. Among them are industrial giants such as oil company Petrobras, paper and pulp maker Suzano, mining company Vale, public utilities and large retail chains like Lojas Renner.
The information was extracted from the management reports that come together with the financial statements, earnings releases and reference forms. Valor also sought out the companies to comment on the figures. Five executives gave interviews.
Of 87 companies, 20 presented investment projections for 2021, an information considered optional by the Securities and Exchange Commission of Brazil (CVM). Of these, 85% intend to invest more this year.
A significant part - especially retail chains - intend to reallocate the funds that were not invested in 2020. A contributing factor to these more ambitious plans is the fact that vaccination is seen in the horizon. "After everything we learned last year, we feel stronger and prepared for adversity," Alvaro Azevedo, Chief Financial and Investor Relations Officer at Lojas Renner, told Valor.
The fashion retailer, which reduced investments by 28% in 2020 compared to 2019, intends to more than double the amount this year to R$1.1 billion. According to Mr. Azevedo, more than half will go to technology and logistics - including the construction of a distribution center in São Paulo. The idea is to boost the online segment, which grew last year with more people shopping from home. The remainder will be used to open up to 55 stores under the brands Renner, Camicado, Youcom and Ashua. The forecast for openings is five times bigger than 2020.
Hering, another fashion retailer, says in a report that it will make this year "its largest investment in history," of R$131 million, 180% higher than in 2020. The company's plan is to use R$84 million for technology projects, Chief Business Officer Thiago Hering says. "We are still optimistic about the plan for this year, which should show the prominent role the company wants to play."
At CCR, which manages highways, airports and subways, about R$500 million in investments were postponed to the current fiscal year. With the pandemic, the company kept...
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