08/08/2024 – 20:36
The Boticário Group will invest R$4.14 billion in Brazil from 2024 to 2028. Of this amount, R$800 million are part of investments already announced in its factory in the state of Bahia. The other R$3.34 billion are new investments that will be allocated to the opening of a new factory in Pouso Alegre (MG), to increase the group’s logistics and for the factory in São José dos Pinhais (PR).
The company’s CEO, Fernando Modé, told Estadão/Broadcast that Boticário usually has relatively short investment cycles, which has allowed it to follow several of them in its 25 years of business. In 2022, for example, around R$ 1 billion was invested.
“We are structuring another ten years of growth so that we can meet demand, plus the projection of what is to come in the future. When we open this new factory, the plant will have an initial volume level. Then, it will have successive production increases, as we are doing in Bahia. The R$800 million invested this year in the Bahia plant had already been announced in 2021, but came out of the cash flow this year to reach the maximum capacity of this unit.”
The construction of the new factory will require R$1.8 billion. The initiative is expected to create 800 direct jobs, with a 50% increase in the company’s production capacity. The unit is expected to begin operations in 2028.
For logistics expansion, R$700 million is planned until 2027, which will be used to expand distribution centers and product flow throughout the country. For the expansion of the São José dos Pinhais (PR) factory, the company has set aside R$840 million. Of this, R$560 million will be used to increase production capacity; and R$280 million for administrative adjustments.
With the expansion of this production unit in Paraná, Grupo Boticário expects to generate 200 new direct jobs, in addition to an increase of approximately 40% in the factory’s production capacity.
Modé explains that the company has an artificial intelligence model that guides the group’s expansions. With over 2,000 variables analyzed, this technology, which has been in development for about ten years, helps the company define where to open distribution centers and other logistics structures for the brand’s franchisees. This same technology was used to choose the best location for the new factory. Issues related to tax reform were also taken into account.
“We are still learning about the impact of tax reform on our business. We have made the best possible assessment of the information we have today. So, yes, this is an important variable. There is a change in taxation at the origin and destination. Minas Gerais represents between the second and third largest state in terms of revenue for us. This balances this issue,” says Modé.
Grupo Boticário’s total sales (GMV) exceeded R$30.8 billion in 2023, a 30.5% increase compared to 2022. The historical performance is almost double the GMV recorded in 2021, when the company reached R$18 billion in sales. From 2013, with R$8 billion in sales, to 2023, with R$30.8 billion, the company almost quadrupled its GMV. Modé understands that, until 2028, the promised investments can still increase.
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