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HomeEconomyBrazil's Buffett-backed StoneCo nearly doubles profit on more users, higher prices

Brazil's Buffett-backed StoneCo nearly doubles profit on more users, higher prices

SAO PAULO (Reuters) – Brazil’s StoneCo nearly doubled its third-quarter profit, reporting earnings that soared above analysts’ expectations on the back of higher prices and a growing user base, the company said on Thursday. outside.

The company, backed by US billionaire investor Warren Buffett, posted a 75% increase in adjusted net income from a year earlier , at 95 million reais, well above the 95 7 million reais forecast by analysts polled by Refinitiv.

Its active customer base grew

% from a year ago to 2. million, helping drive revenue up to 2.5 billion reais, also 37% growth.

Finance Minister Rafael Martins told Reuters the results were also driven by higher prices, reflecting higher interest rates in Brazil: “The repricing move has proven to be more successful than our initial forecast, “He says.

However, higher interest rates also pushed up the group’s financial expenses es 184% to 184.3 million Ray Yar.

StoneCo said its finance expenses as a percentage of revenue had “started to normalize after growing in the second quarter,” suggesting that “we continue to see positive trends in growth going forward.”

Earlier this month, Brazil’s central bank chief said a rate cut could begin next quarter in June, after lenders held rates 37.75% after hitting a cycle high in October.

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