Top executives see long-term prospects but flag rates, inflation

Despite caution over the macroeconomic outlook, many companies are focused on the long term and plan to maintain their investment strategies. For some, however, growth plans still hinge on ongoing deleveraging efforts.

Opening the event at the Rosewood Hotel in São Paulo, Frederic Kachar, CEO of Editora Globo and Sistema Globo de Rádio, stressed the need for greater diversity in corporate leadership. “Of the 25 awardees, 13 are first-time winners, which shows how dynamic the market is,” he said. “We’ve seen good progress in female representation in recent years, but since 2023, that progress has stalled. We need to advance the diversity agenda through a structured approach to leadership development.”

To lead a winning company, Mr. Kachar added, discipline is essential to deal with disruptions amid fierce competition and evolving consumer behavior. “Only those who preserve an organization’s essence—with awareness, discipline, resilience, coherence, and vision—can truly carry its culture forward.”

Maria Fernanda Delmas, editor-in-chief of Valor, said companies today bear an enormous social and environmental responsibility. “A company will only be long-lasting and contribute to society if the people who pass through it are aware of that responsibility and use their power to drive the necessary changes,” she said.

Milton Maluhy Filho, CEO of Itaú Unibanco, Brazil’s largest private-sector bank, said reducing the country’s benchmark interest rate to a less restrictive level depends on fiscal policy. “If Brazil manages to ensure debt sustainability, the country will be better positioned to attract investment—both foreign and domestic,” he said. “There are many opportunities in Brazil, and we need to make the most of this window.”

Daniel Slaviero, CEO of energy company Copel, echoed that view. “The high cost of capital is always a concern, but I believe interest rates may be near their peak,” he said. “With improvements in fiscal conditions, we may see rates start to fall in the medium term.”

The impact of high rates will be felt soon, warned Belmiro Gomes, CEO of cash-and-carry retail chain Assaí. He sees this as one of the biggest risks to business investment, as rising corporate debt burdens eventually affect consumers—especially low-income groups, who are already hard-hit by inflation and now face tighter credit conditions. Assaí has reviewed some of its investments and adopted a more disciplined capital allocation strategy since early 2024.

Ricardo Ribeiro Valadares Gontijo, CEO of real estate developer Direcional, also pointed to the cost of capital as a serious issue. “It’s extremely high, and that makes many vital projects unfeasible,” he said. He acknowledged the need for rate hikes to curb inflation but argued they should last “only as long as strictly necessary,” given the long-lasting consequences. Home financing has been particularly affected, with available credit still largely reliant on savings accounts—which are seeing reduced inflows—and the Workers’ Severance Fund (FGTS). “Credit is the main engine of our business,” he said.

In the mobility sector, Bruno Lasansky, CEO of Localiza & Co., said higher interest rates are the top challenge. “We expect rates to keep rising through the end of the year, which impacts credit availability and cost.” His solution: focus on disciplined resource allocation and stronger returns. “If money becomes more expensive, you have to improve returns through more efficient revenue generation and cost control.”

Even so, Mr. Lasansky sees opportunities in fleet rentals, as corporate funding costs rise. Localiza plans to continue investing heavily this year, he said, especially in technology platforms for renting, subscribing to, or buying vehicles.

Fabio Faccio, CEO of Renner, which just marked its 60th anniversary, noted that while fashion retail has been performing well, “high interest rates and inflation are bad news for everyone.” He emphasized that Renner’s debt-free balance sheet is an advantage in the current environment. “High rates are a serious problem for anyone carrying debt.”

Jeane Tsutsui, CEO of medical diagnostics and healthcare services group Fleury, also pointed out that now is not a good time for companies to be overleveraged. “Given high interest rates, we’re lightly leveraged. We managed our debt well last year and are well-positioned for the current environment,” she said.

Rafael Vasto, CEO of Daki, a four-year-old online supermarket unicorn, flagged off-target inflation as another key concern. “Whether it’s high inflation or a Selic [policy] rate at 14.75%, both affect how we operate as a retailer buying and selling goods. That’s the biggest issue,” he said.

Roberto Valério, CEO of Cogna—the country’s largest education group—shares similar concerns. “Part of the challenge is macroeconomic expectations, not just interest rates but household income. Will rising rates and inflation reduce families’ purchasing power and lead to lower education spending?” he asked.

Legal uncertainty

Eduardo del Giglio, CEO of HR tech startup Caju, and Ana Sanches, head of mining giant Anglo American in Brazil, also raised concerns about legal uncertainty. “Regulatory changes are constantly under discussion,” said Mr. Del Giglio. Ms. Sanches added that resolving legal instability could even become “a competitive advantage for Brazil’s mining sector versus other markets.”

Carlos Hentschke, CEO of agribusiness and seed technology company Syngenta Seeds, agreed. “There’s legal uncertainty. This politically polarized, unstable environment isn’t good for any sector,” he said.

Raquel Reis, CEO of SulAmérica Seguros’ health and dental division, pointed to a deeper issue: over a decade of intense ideological conflict has hampered the creation of a clear, nonpartisan economic agenda. “Many countries know where they’re headed and what their top priorities are. Whether a right-wing or left-wing party is in power, the direction doesn’t change. Brazil still struggles to define that,” she said.

Christian Gebara, CEO of Telefônica Vivo, joined Mr. Hentschke and Ms. Tsutsui in highlighting currency volatility as a major hurdle. “Exchange rate fluctuations are what hurt us most. A dollar at R$6 directly impacts the price of the products we sell,” he said. Vivo resells smartphones and electronics, and any increase in product prices affects both consumers and the company’s service margins.

Echoing Ms. Sanches of Anglo American, Ricardo Neves, CEO of NTT Data in Brazil, said human capital development must become a national priority—especially amid growing use of artificial intelligence. As a global consulting firm, NTT Data sees a talent shortage in tech due to low digital literacy in Brazil. “This gap holds back business growth and the country’s readiness for the digital economy,” Mr. Neves said.

The 2025 Executivo de Valor awards were supported by master sponsors ArcelorMittal, Care Plus, Cemig, and Zeekr (official car of the event), with additional backing from Gol, Febraban, Rosewood Hotel São Paulo, and Eletromidia.

*By Valor  — São Paulo

Source: Valor International

https://valorinternational.globo.com/