Brazil's StoneCo nearly triples fourth-quarter adjusted profit (updated)

StoneCo

18/03/2024 21:16

(Adds more details and context in paragraphs 4-8)
       SAO PAULO, March 18 (Reuters) - Brazilian payments
processor StoneCo  STNE.O  reported on Monday a 177% increase in
its fourth-quarter adjusted net profit from a year earlier,
driven by its small and medium business segment, while the
firm's cofounder stepped down as chairman. 
    The firm posted a 563.8 million real ($112.21 million)
adjusted net profit for the quarter ended in December, over an
estimate of 483 million reais for the period by analysts polled
by LSEG.
    Revenues rose 20% year-on-year to 3.25 billion reais in the
quarter, which the firm attributed to higher revenues from its
financial services business, with active client growth and
higher monetization, particularly in its small and medium
business segment. However, revenues came in under the LSEG
estimate of 3.40 billion reais.
        StoneCo said its total payments volume grew 13.3% to
113.5 billion reais, with payments from its micro-, small- and
medium-business (MSMB) segment rising 20.2%.
  
        The company also announced that founder and chairman
Andre Street will not run for reelection at its the next
shareholders meeting, scheduled for April. Mauricio Luchetti,
who currently holds a position on the board, will be recommended
for the position, it added.
  
        "Despite stepping down, Andre remains deeply connected
to the company as its reference shareholder, bolstered by
special protections under our shareholders' agreement and
articles of association", StoneCo said in its earnings release. 
  
        The company, which also provides software and banking
services, late last year 
    released estimates
     to multiply yearly net profits eightfold through the end of
2027, compared to 2022.
  
        
  
    ($1 = 5.0247 reais)
  

 (Reporting by Andre Romani; Editing by Kylie Madry)
 ((Andre.Romani@thomsonreuters.com; 11 991314109;11 56447500;))