Fras-le ended 2020 with consolidated net revenue of R$ 1.7 billion, achieving the best result of the company in the last ten years. The positive performance, which registered an increase of 22% compared to 2019, was mainly driven by the positive performance of acquisitions and by changes and adjustments in the business made by the company in the last three years. The company also recorded total gross revenue of R$ 2.4 billion, an increase of 18.1% compared to the previous year, and adjusted EBITDA of R$ 283.1 million, with an EBITDA margin of 16.9%. Net income totaled R$ 182 million in 2020, an increase of 454.9%.
During 2020, Fras-le completed the purchase of Nakata, the largest acquisition in the company's history, which contributed to the company's growth in the Brazilian aftermarket, to the expansion of the already diversified product portfolio, mainly adding the suspension and management systems, and to the direct increase in revenue. In addition, the company's positive performance was a reflection of the improvements that began in 2018, including line readjustment, process changes for productivity gain, cost reductions and technology investment. The results of the year also include the success in the tax process related to the exclusion of ICMS* from the PIS* and COFINS* calculation base.
"The capillarity of our business and the presence in the international market were fundamental to the fulfillment of the planned strategies. In addition, our preparation from previous years has laid the foundation for our sustainable growth, even in a year of great challenges. Cautiously, we have built alternatives that have enabled the maintenance of our commitments and goals, bringing Fras-le to new heights in the market," said Sergio L. Carvalho, CEO of Fras-le.
In relation to the results presented by the company in the fourth quarter of 2020, total gross revenue, without eliminations, was R$ 832.7 million, 47.5% higher than the same period in 2019. Net revenue increased 60.5%, compared to the fourth quarter of the previous year, totaling R$ 595.3 million. Gross profit for the period totaled R$ 175.8 million, an increase of 70.5% compared to the same period in 2019. EBITDA reached R$ 156.6 million, 156.3% higher than the fourth quarter of the previous year.
"The challenges of 2020 have been accompanied by significant opportunities. Cooperation, partnership and care, values that have always guided Fras-le's activities, have become even more central in our guidelines. The dedication and commitment of our people, together with strict health and safety protocols, have allowed us to reach these great results more united and close as an organization and more solid and robust as a company", reinforces the Director of Investor Relations, Hemerson de Souza.
In 2020, investments totaled R$ 56 million, of which R$ 25.9 million was allocated to the Fras-le unit in Caxias do Sul, focusing on the railway brake shoe line, AGV's for the supply of cutters, machinery and equipment, various automations and NR-12 safety adjustments, in addition to amounts invested in the VDA and ABS tracks of the Randon Technological Center. In the controlled units, Fremax's casting capacity was expanded and the machining capacity of Brakes Controil was expanded.