Wednesday, July 5, 2017

The 7 Largest Brazilian HQ'd Companies Reporting With the US SEC in Brazilian Real Generated Total 2016 Earnings Which Were 10% Below That in 2015, Even Though Brazilian Inflation in 2016 was 6.3%

The largest Brazilian Companies dominating the Brazil landscape are the ones reporting their financial statements to the US SEC.

For instance, the 6 Brazilian Companies with the highest stock market capitalization report their financial statements to the US SEC.

Altogether there were 9 Brazilian Companies with market caps now above 40 Bil Brazilian real which reported their financial statements to the US SEC.  Of those nine, seven of them report their financial statements in Brazilian real.

From a review of company financial statements in the US SEC website, along with a review of Google's fine financial website, below are the Audited Earnings (Losses) From Continuing Operations for each fiscal year (FYE) from 2007 through 2016 for each of these 7 Brazilian Companies:


2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

Most Audited Audited Audited Audited Audited Audited Audited Audited Audited Audited
Largest Brazilian Companies Recent Net Net Net Net Net Net Net Net Net Net
Reporting With US SEC 2016 Income Income Income Income Income Income Income Income Income Income
Reporting in Brazilian Real (BRs) FYE (Loss) (Loss) (Loss) (Loss) (Loss) (Loss) (Loss) (Loss) (Loss) (Loss)


 mil BRs   mil BRs   mil BRs   mil BRs   mil BRs   mil BRs   mil BRs   mil BRs   mil BRs   mil BRs 











Itau Unibanco Holding SA Dec     23,582     26,156     21,861     16,522     13,191     14,610     12,494     14,612       4,878       7,660
Banco Bradesco SA Dec     17,993     18,238     15,416     12,486     11,352     11,089     10,052       8,301       7,149       7,945
Ambev SA Dec     13,083     12,879     12,362     11,399     10,459       8,479       7,460       5,988       5,191       5,069
Banco Santander (Brasil) SA Dec       7,465       9,834       5,708       3,785       5,438       7,673       7,323       5,508       2,379       1,903
Telefonica Brasil SA Dec       4,085       3,420       4,937       3,716       4,452       4,362       2,398       2,204       2,500       2,370
Ultrapar Participacoes SA Dec       1,571       1,513       1,251       1,229       1,027          860          761          441          420          335
BRF SA Dec        (367)       2,948       2,135       1,020          805       1,384          816          119          (89)          303












Total all 7 Reporting in mil BRs
    67,412     74,988     63,670     50,157     46,724     48,457     41,304     37,173     22,428     25,585












2016 Total Earnings % Below 2015
-10%









It should be pointed out the the above upward total earnings pattern from 2008 to 2015 is misleading since inflation rates in Brazil have been substantially higher than those in the US.