The twenty most potent corporate reputations in Brazil contributing US$130bn of shareholder value
Reputation is crucial when it comes to company value and the first evaluation of Brazilian companies by Reputation Dividend has shown its accounting for close to 33% of the total market cap of the country’s largest companies
São Paulo, July 30, 2015 - Reputation Dividend (www.reputationdividend.com), in cooperation with Grupo Attitude (www.attitudesa.com), announced today the 2015 Brazil Reputation Dividend Report. This first look ever studied 34 companies of the Bovespa Index (“Ibovespa”), which currently comprises shares of 61 companies. Although they represent just 56% of all Ibovespa companies, they account for 90% of its total weighted average (more actively traded and better representative stocks of that market), and where selected based on higher market caps, liquidity and analyst coverage.
For Simon Cole, Founding Partner of Reputation Dividend, “the Top 5 companies in term of Reputation Premium were Cielo, Smiles, Ultrapar, Ambev and BRF. Each one of them is commanding a corporate reputation that is currently inspiring investor confidence to the extent that it is accounting for at least 43% of market capitalization. The twenty most potent corporate reputations in Brazil account for US$130 billion (average of 33%) of the total market cap of US$399 billion (as of June, 2015). This not only demonstrates the importance of these assets but also underlines the critical role of effective reputation management in order to secure shareholder value already created and realise further growth potential”.
Market Cap as of Reputation Reputation Value Position Company Ticker 6/30/15 (US$ million) Premium (US$ million) 1 Cielo CIEL3 24,631 45% 11,084 2 Smiles SMLE3 2,043 45% 919 3 Ultrapar UGPA3 11,616 44% 5,111 4 Ambev ABEV3 101,002 43% 43,431 5 BRF BRFS3 19,697 43% 8,470 6 Lojas Americanas LAME4 6,491 35% 2,272 7 Souza Cruz CRUZ3 13,582 33% 4,482 8 Telefônica VIVO VIVT4 19,610 32% 6,275 9 Banco Bradesco BBDC4, BBDC3 55,239 31% 17,124 10 Lojas Renner LREN3 3,754 29% 1,089 11 CCR CCRO3 10,313 28% 2,888 12 Klabin KLBN11 5,451 27% 1,472 13 Multiplan MULT3 3,632 26% 944 14 Fibria FIBR3 7,154 24% 1,717 15 Embraer EMBR3 6,460 24% 1,551 16 Tractebel Energia TBLE3 7,639 23% 1,757 17 BB Seguridade BBSE3 22,706 20% 4,541 18 Itaú Unibanco ITUB4, ITUB3 67,077 20% 13,415 19 Natura NATU3 4,249 19% 807 20 CPFL Energia CPFE3 6,261 17% 1,064 21 Kroton Educacional KROT3 5,915 17% 1,005 22 TIM Brasil TIMP3 10,112 16% 1,584 23 BM&FBovespa BVMF3 6,385 15% 946 24 Cosan CSAN3 4,037 12% 473 25 Hypermarcas HYPE3 4,230 11% 446 26 Suzano Papel e Celulose SUZB5 4,480 7% 334 27 Qualicorp QUAL3 2,493 <6% - 28 Petrobras PETR4, PETR3 43,507 <6% - 29 Cetip CTIP3 3,162 <6% -
30 Usiminas USIM5 3,338 <6% - 31 Banco do Brasil BBAS3 23,816 <6% - 32 Vale VALE5, VALE3 37,103 <6% - 33 JBS JBSS3 12,917 <6% - 34 Grupo Pão de Açúcar (GPA) PCAR4 9,031 <6% -
Reputation Dividend specialises in quantitative reputation analytics and is the publisher of the Annual Reputation Dividend Report for the UK and the US. The 2016 Brazil Reputation Dividend Report will be expanded to include more companies and further breakdowns of the economic impact of each individual company’s reputation asset.
“The implications for Brazilian companies are clear and the challenges are demanding that two crucial questions be answered if these assets are to be managed to best effect: (i) how stakeholders view both you and your competition, what are their strengths and what are their vulnerabilities? and (ii) what matters most to your stakeholders, which drivers have the greatest impact on reputation value, and what messaging will secure and grow it fastest?” commented Rodolfo Zabisky, Chairman and CEO of Grupo Attitude.
Contact: Simon Cole, Reputation Dividend, M: +44 795 642 3843, [email protected] Rodolfo Zabisky, Attitude, T: +5511 3529-3770, [email protected]
About Reputation Dividend (www.reputationdividend.com): Reputation Dividend is an independent corporate reputation and brand research consultancy specialising in quantitative reputation analytics and is the publisher of the Annual Reputation Dividend Report. Reputation Dividend developed the methodology that underpins its analysis six years ago. Reputation Dividend has published studies covering both the UK and US equity markets and undertaken bespoke analysis on behalf of a number of leading companies in the US, UK and Europe.
About Grupo Attitude (www.attitudesa.com): Grupo Attitude S.A. is a leading communications agency that operates on four major fronts: corporate communications; investor relations/governance; digital marketing/videos and research. This combination of skills allows the company to offer the market a compelling value proposition: research/benchmark, analysis, planning and engagement actions across existing platforms (digital and analog) for main stakeholders (consumers, investors, media, government, board members and employees).