Brazilian consumer electronics firm Positivo Tecnologia is upbeat about the future following positive results in the second quarter and a plan to diversify revenue streams.
The company, Brazil's largest manufacturer, reported a revenue increase of 16.5 percent for the second quarter of 2019 to 556.5 million reais ($139 million) and net profit of 9.8 million reais ($2.4 million) - this compares with a net loss of 11.6 million reais ($2.9 million) for the same period last year.
Positivo had been suffering the impact of the dollar hike against the Brazilian real in recent years, despite previous attempts to protect its financial exposure to foreign exchange variations.
However, the hedging mechanisms were not enough to minimize the impact, which translated into an increase in the cost of materials for the company and the need to apply greater discounts for products like smartphones to fend off competition.
In reference to the recent years of struggle, the president at Positivo Helio Rotenberg told local newspaper Valor Econômico the company managed to mostly overcome its challenges: "We've had to look inwards over the last five years and are over the worst," Rotenberg told Valor.
The executive added that the company is full steam ahead with its diversification strategy across five new revenue streams.
This includes enterprise servers, made possible with the acquisition of a majority stake in Brazilian PC and server manufacturer Accept in January 2019. According to Valor, the company is also renting computers rather than just selling them.
In addition, Positivo has also launched a connected home range and has an investment fund focused on startups in the Amazon region, where its factory is based.
Last year, Huawei had announced that the Brazilian consumer electronics firm would be handling the import and sales aspects around its return to the local smartphone market, but the partnership didn't go ahead.