Brazilian companies

Move over multinationals – the locals are coming.

Sound unlikely? Actually not, according to a new study by the Boston Consulting Group. It has identified 50 emerging market companies giving the big boys a run for their money in their own backyards.

These “local dynamos” – like Indian e-commerce company Flipkart, Chinese mobile-phone company Xiaomi, Bank Rakyat of Indonesia, Discovery Health of South Africa or Banorte of Mexico – may not be international names, but they have successfully carved out innovative domestic niches for themselves. Read more

Deal-making might look like it is going through a slow patch in Brazil given the country’s weakening economy and currency volatility. But that depends on your perspective.

Lincoln International, a US-based boutique advisory firm that targets mid-market deals, is one of those with a different view. It said on Wednesday it was buying the financial advisory division of a Brazilian domestic rival, the Stratus Group. Read more

What price a reputation? Earning a good one takes time. Losing it can take a moment. So some of the biggest companies based in Brazil, Russia, India and China may not be pleased to read a report issued this week by RepRisk, a consultancy that calls itself “the leading provider of business intelligence on environmental, social and governance (ESG) risks”. Read more

The party is finally over for telecoms companies in Brazil, it seems.

For the past couple of years, the likes of Italy’s Tim have enjoyed booming revenues and a relatively free reign over Brazil’s market – a welcome break from the misery back home in Europe.

But not even Brazil can offer much relief now. While a row with the industry regulator, Anatel, over poor service hangs over the companies, the country’s abrupt economic slowdown has also hit profits. Read more

Petrobras offshore ship platformThere was a point earlier this year when Brazil’s real looked like it could weaken well past the R$2 to the dollar.

So, given the government’s long-held desire to help Brazilian manufacturers exporters become more competitive through currency depreciation, it was something of a mystery then when the central bank stepped in earlier this year and stopped it from sliding much further.

Now we know one of the reasons perhaps that the government was keen to keep a lid on its currency war – the worst results from state-run oil company Petrobras in 13 years and most of it due to a weaker real against the dollar. Read more

In Brazil’s second quarter corporate earnings season this year, the gold medals are few and far between. Indeed, even bronze is looking like a victory in this race to the bottom among what were once some of the most elite performers of the emerging market world. Read more

Brazil’s Vale is nothing but optimistic.

The mining company’s net income slumped almost 60 per cent to $2.66bn in the second quarter from the year earlier – the worst results in two years.

The chief financial officer has just announced this week he is resigning and global iron ore prices have fallen to a nine-month low as Chinese growth slows.

But no need to panic, apparently. Read more

Already depressed about Brazil’s growth (or lack of it)? Wished you’d picked another BRIC to invest your life savings in? Well brace yourself, second-quarter earnings season gets into full swing next week and it’s not going to be pretty.

According to Reuters on Wednesday, the results could be the worst in almost three years with disappointments coming from the banking sector as well as steelmakers and miners. Read more

After what was looking like a so so fourth quarter corporate reporting season, the week has ended on a more optimistic note in Brazil on a mix of good company financial results and improving macro-economic fundamentals.

Latin America’s largest cosmetics company, Natura, led the way, beating forecasts with a 33 per cent increase in net profit to R$290.7m in the three months to end-December compared with a year earlier. Analysts surveyed by Bloomberg had predicted R$255.3m. Read more

When Brazil’s central bank stepped into the market to defend the country’s weakening currency last month, many were a little bemused.

After all, the country’s finance minister, Guido Mantega, has spent the best part of this year waging a currency war against the dollar and complaining about just how strong the Brazilian real is.

But all became a little clearer on Wednesday night. Vale, the Brazilian mining giant, shocked analysts by reporting an 18 per cent plunge in third-quarter net profits. And the culprit? A $2.19bn currency loss and another $568m hit on derivatives related to foreign exchange and interest rate bets. Read more

What causes companies from an emerging market country to expand abroad? One obvious driver is an economy that is powering ahead whilst developed markets falter. Another familiar, but less reassuring phenomenon is an over-valued currency that causes companies to relocate production in search of lower prices.

Both were at work for Brazilian companies last year, according to a new report on Brazilian transnationals from the Fundação Dom Cabral, the business school. Read more