Brazilian lubricants producer and distributor Moove saw its profit fall in the first three months of the year as costs rose faster than sales for a fourth straight quarter.Profit before interest, taxes, depreciation and amortization of 173.4mn Brazilian Real ($34.18mn) in the three months to end-March fell by 8pc versus the same period last year, Cosan Group said in an earnings statement. Moove is part of Cosan Group.Profit fell as the 23pc rise in costs during the period outpaced the 17pc rise in sales. Moove’s profit margin fell in response to 10.5pc, from 13.3pc during the first quarter of 2021..The trend mirrored a similar pattern globally among base oil producers and especially base oil consumers during the first quarter of the year.Consumers have faced more such pressure because of the time lag between rising feedstock costs and their moves to raise their selling prices in response.Moove faced the additional challenge of weak lubricants demand in Brazil at the beginning of the year. The effect was magnified by a high base level during the same time in 2021, when demand rose following the easing of Covid-19 restrictions.Brazil’s lube demand fell for six straight months to February this year, before turning positive in March.Moove’s profit and margin rose from the fourth quarter of last year, mostly on the back of a pick-up in sales volumes. The pace of the rise in costs also eased from the fourth quarter to its slowest since second-half 2020.Moove produces and distributes lubricants under the Mobil and Comma brands. It has operations throughout South America, Europe and US. Moove also imports and distributes base oils in Brazil..Brazil’s March lube demand rebounds
Brazilian lubricants producer and distributor Moove saw its profit fall in the first three months of the year as costs rose faster than sales for a fourth straight quarter.Profit before interest, taxes, depreciation and amortization of 173.4mn Brazilian Real ($34.18mn) in the three months to end-March fell by 8pc versus the same period last year, Cosan Group said in an earnings statement. Moove is part of Cosan Group.Profit fell as the 23pc rise in costs during the period outpaced the 17pc rise in sales. Moove’s profit margin fell in response to 10.5pc, from 13.3pc during the first quarter of 2021..The trend mirrored a similar pattern globally among base oil producers and especially base oil consumers during the first quarter of the year.Consumers have faced more such pressure because of the time lag between rising feedstock costs and their moves to raise their selling prices in response.Moove faced the additional challenge of weak lubricants demand in Brazil at the beginning of the year. The effect was magnified by a high base level during the same time in 2021, when demand rose following the easing of Covid-19 restrictions.Brazil’s lube demand fell for six straight months to February this year, before turning positive in March.Moove’s profit and margin rose from the fourth quarter of last year, mostly on the back of a pick-up in sales volumes. The pace of the rise in costs also eased from the fourth quarter to its slowest since second-half 2020.Moove produces and distributes lubricants under the Mobil and Comma brands. It has operations throughout South America, Europe and US. Moove also imports and distributes base oils in Brazil..Brazil’s March lube demand rebounds
