Brazil silo maker Kepler posts weak results, eyes growth in Argentina

By Roberto Samora

SAO PAULO, Aug 8 (Reuters) - Silo maker Kepler Weber KEPL3.SA posted a fall in quarterly results on Friday due to a weaker operating scenario in its home country Brazil, but executives said the company was positive about growing sales in Argentina.

While high interest rates and low grain prices have eroded business prospects and profitability in Brazil, CEO Bernardo Nogueira said neighboring Argentina represented a "new avenue" for expansion as its economy improves and inflation stabilizes.

"The picture is grim," Nogueira said of Brazil, where farmers produced a record soy crop this season, which pushed down prices of the oilseed globally. Brazil is among the world's largest suppliers of corn and other food staples.

Kepler said it ended the second quarter with a nearly 14% rise in the backlog of orders for its silos. However, net profit fell 61% compared with the same period last year to 14.4 million reais ($2.65 million).

Most of Kepler's revenue comes from Brazil. In the first half of 2025, the company posted net sales of 700 million reais, 90% of which was generated domestically.

As Argentina's economic crisis abates, farmers there can invest in storage.

The country, which competes with Brazil and the U.S. on global grains markets, already accounts for 30% of Kepler's sales abroad, up from nothing in 2023, the company's management said.

"Argentina represents the addition of Mato Grosso to our portfolio," Nogueira said, comparing Brazil's largest grain-producing state with its neighboring country. "It's fascinating what's happening there."

($1 = 5.4276 reais)