Camilla Analyst's questions to Gerdau SA (GGB) leadership • Q1 2024
Question
Camilla Analyst inquired about the cost outlook for Brazil in the first half of the year, working capital expectations, and the operational impact of the severe rainfall in Rio Grande do Sul.
Answer
CFO Rafael Japur stated that while rising raw material costs from late 2023 will impact the P&L, these will be partially offset by ongoing fixed cost reduction efforts. Regarding the floods, he confirmed that Gerdau temporarily halted production at two local plants to ensure employee safety, but he does not expect a material impact on supply or costs. He also anticipates further release of working capital throughout the year.