Read this Wednesday’s edition of the FolhaMercado newsletter (29) – 03/29/2023 – Market

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Why Amazon and Apple Are Now Targeting Theaters

After investing heavily in their streaming services, Amazon and Apple are starting to look to theaters as a way to increase the profitability and visibility of their productions.

• This Tuesday, a news from the website Intersect pointed out that Amazon is considering making an offer for the American chain of cinemas AMC, which walks badly from the legs financially. Shares in the network closed up 21%.

• The interest comes after Bloomberg reported that Apple and the company founded by Jeff Bezos plan to invest $1 billion each a year in films to be released first in theaters and then on streaming.

Which explains: while they were excited about the streaming boom in the pandemic and ran after the leader Netflix, the two big techs opened their pockets to attract large studios and productions to their services.

• In the same year, Apple paid a record amount of $25 million to be the distributor of the film “No Ritmo do Coração”, which became exclusive to its streaming and won an Oscar.

Now, however, the scenario has reversed. With the end of the pandemic’s travel restrictions, the streaming wave cooled down, and the order of the time became less spending, more revenue.

• It is from this last factor that the plan to release the films first in theaters comes.

• In addition to helping defray production costs, showing them earlier on the big screen can attract subscribers to the platforms where the films will be available once they leave theaters.

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Grupo Petrópolis in judicial recovery

The Petrópolis Group, of Itaipava, Petra and Cacildis beers, entered into judicial recovery (RJ) with debts of around BRL 4.2 billion —BRL 2 billion with financial creditors and BRL 2.2 billion with large suppliers.

• In the request made on Monday (27), Petrópolis asked for the granting of precautionary relief to suspend the payment of R$ 105 million of an installment of interest that was due that day.

• The guardianship also prevented the retention of amounts that the company had in the banks.

What motivated RJ: Petrópolis attributed the request to its liquidity crisis generated by a drastic drop in revenue that began 18 months ago.

• The situation was aggravated by the rising cost of raw materials and the high level of interest in the country, which ended up eroding its cash.

In numbers: in 31.2 million of hectoliters (1 hectoliter equals 100 liters) sold in 2020, the company ended 2022 with 24.1 million of hectoliters traded, and 2021, with 26.4 million.

• The increase in the Selic has an impact of around BRL 395 million per year in the group’s cash flow. Until March, the need for working capital is BRL 360 million higher than designed.

The company: purchased in 1998 by Walter Faria, Grupo Petrópolis has been adding brands and industrial units to its portfolio.

• Today, it produces Petra, Cabaré, Black Princess, Crystal, Lokal, Weltenburger, Brassaria Ampolis (with the Cacildis, Biritis, Ditriguis and Forevis labels), in addition to energy drinks, vodkas and soft drinks.

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The court accepted the request for extrajudicial recovery by fashion retailer Amaro, which had been filed on March 22.

The plan was approved by creditors representing 41.63% of what is owed, the equivalent of R$ 101.8 million, and was then approved by the judge, noting that the company complied with the legal requirements.

In numbers: the company reported BRL 244.6 million in debt – R$151.7 million with banks and R$93 million with suppliers.

Amaro justified the request for recovery by the retail credit crisis, which made it unsuccessful in the search for new investors and in the renegotiation of debts with Itaú and Santander.

The company: the fast fashion retailer was founded in 2012 and operates both in e-commerce and through 20 physical stores installed in malls. She told Justice to employ 594 people directly.

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Scholarship back to 100 thousand

The Stock Exchange closed again above the symbolic level of 100 thousand points this Tuesday (28), with an increase of 1.52%at 101,185 points, while the dollar fell 0.80%, for BRL 5.16.

The positive result came on a day when commodities prices rose and the Copom minutes were released, which maintained the harsh tone of last week’s statement, but conveyed the message that a “solid and credible” fiscal framework can cool down inflation expectations.

• The two largest companies in the index, Vale and Petrobras, closed up 1% and 1.7%, respectively, and, like other commodity-linked shares, helped the stock market advance on the day.

• Regarding the minutes, market economists assessed that the BC maintained its firm stance against the start of interest rate cuts before inflation expectations returned to the target considered by the authority, but indicated that the fiscal rule could help in this process.

between companiesthe highlight was Hapvida, whose shares rose 18% on the day.

• She had been suffering from the bad mood of the market since the beginning of the month, when it released the balance sheet, and saw its shares extend the fall after saying that it considered an issue of shares to strengthen the box.

on monday nighthowever, Hapvida reassured part of the shareholders by announcing two operations with its controllers to increase the company’s liquidity:

• A sale and leaseback, an operation consisting of the sale of assets and, at the same time, a contract to rent them back. There will be ten hospitals involved in the agreement, with BRL 1.25 billion going to the company cashier.

• A capital increase, with the Pinheiro family committing to inject BRL 360 million in an operation that, in total, will issue 385 million shares, moving around BRL 1 billion.