Good afternoon, ladies and gentlemen. Welcome everyone to MAHLE Metal Leve's audio conference to discuss results relative to Q3 2022. This video conference is being recorded and the replay facility will be made available at the company's IR website. The respective slide deck will also be made available for download. All participants are only watching and listening the video conference during the company's remarks. After that, we will start a Q&A session when further instructions will be provided. Before moving on, I would like to state that forward-looking statements are based on beliefs and assumptions on the part of the company's management, and also on information currently available for the company.
Such forward-looking statements might involve risks and uncertainties as they refer to future events and therefore depend on circumstances that may or may not materialize. Investors, analysts, and the public should take into account that events relative to the macroeconomic environment, to the industry and other factors might lead results to being considerably different from those expressed in these forward-looking statements. Joining us today, we have Mr. Nathan John Quye, CFO, Mr. Daniel Brasil Alves, Marketing Manager, and Mr. Fábio Peres, Finance Officer. Mr. Quye will carry on. Please, Mr. Quye, you have the floor.
Thank you, and good afternoon, everyone. Ladies and gentlemen, welcome everyone to our conference call for MAHLE Metal Leve to discuss Q3 2022. Before moving on and start with the agenda, I would like to wish you all good health. We hope you are all in good health and safe. At the end of my presentation, we will be available for questions or comments you may have. Moving on with today's agenda, please next slide, if you will. We will start as usual with the highlights, and then we are going to go over a market overview with Daniel Brasil, and then a bit more detail on the company's performance in terms of net revenues and financial management.
Then we are going to move over to CapEx and depreciation, and we will wrap up with the Q&A session. With the slides, please. Highlights, please, next slide. Of course, you have the numbers for Q3 already available. This was a very good quarter for us with sales at a good level of BRL 1.2 billion, up 26.3% when compared to Q3 last year. A good quarter across all segments, especially in the domestic market and of course, original equipment and aftermarket as well. The year -to -date, September, all numbers are above or going up. Export, slightly below than last year.
Daniel Brasil will go into more detail for the reasons behind those numbers. The year -to- date, nine months, are 16.3% higher than last year. We are quite happy with the sales numbers we have so far. That is a key indicator for this quarter, as you know. On the bottom parts of the chart, you see other important numbers. The company's adjusted EBITDA, way above last year's figure, BRL 283 million, way above the figure of last year. 55% above in the quarter, to be sure, and 52% on top of last year's numbers. We will also talk about the reasons behind those movements. Gross margin really contributed because gross margin was way above what we had last year, and we will be going into the reasons for that as we go down with the presentation.
EBITDA margin 23.6% on the third line of the table, way above, once again, what we had in the second quarter. When you consider the year -to -date numbers, slightly below last year's numbers, but still close to what we had at that level, 20.6% for 2022 now. Net profit, BRL 200 million and some. We are quite happy with this number for Q3. Once again, way above what we had in the first half of the year. The main drivers for that increase was raw material costs also contributed and also our sales level in this quarter were significantly more important, BRL 1.2 billion. All of that combined helped boost our net profit.
As for the net margin, 16.8% in this quarter. Once again, way above what we had in Q2 and also in comparison to last year's numbers. For the year -to -date, nine months 2022, still above what we had last year for the same period. Those are very, very important bullish numbers for Q3, and comparing both the quarter and the first nine months of the year. Next slide, please, Louise, if you will. Daniel Brasil will now elaborate on our sales numbers. Over to you, Daniel.
Thank you, Nathan. Good afternoon, everyone. Thank you so much for joining our call for MAHLE Metal Leve's Q3 results. On slide number four, sales and vehicle production for Brazil and Argentina year -to -date, nine months 2022 as compared to the same period of last year, 2021. On the first part of the slide, light vehicles in Brazil, we saw a drop of 5% in year-to-date sales. In Argentina, a growth of 10%, and combining both countries, a drop of 2.8%.
Despite the negative number, it is an improved figure when we look back at the beginning of the year. When we look at the first half of the year, the first six months of the year, 2.8% was -12%. We moved from -12% to -2.8%. That shows an improvement. If we add another month, the month of October, for which we already have the numbers, that number will go down to -1%. We are moving steady to close the year in line what we had in 2021. That is a forecast for the closure of the year, which is also aligned with ANFAVEA's numbers for the sales of light vehicles. Closing the year at the same level we had in 2021. In terms of vehicle production, we saw a growth of 6.3% in Brazil, a growth in Argentina of 28.2%.
Combining Brazil and Argentina, we see a growth of 10%. Here, once again, an improvement. In the first half, that number was -1%, - 1%. The - 1% became +10%. Significant improvement in the year, especially in Q3. If we add October, once again, that number will go up to 11% in terms of growth in production. The forecast for the whole year, Brazil plus Argentina, a growth of 5%. Overall, production ahead of sales, 5% for production. That is exports to countries in the region. Exports from Brazil and Argentina to other countries in the region. Better numbers on that front, which of course has an impact, and that is why you have production ahead of sales. Moving on to heavy vehicles. First nine months of the year for Brazil, we see a drop of 1.1%. In Argentina, a growth of 1.5%.
Combining both countries, a drop of 0.8%. A significant performance when we look at the first half, we had a drop of 1.6%, so we see an improvement here, not unlike what we see in the nine first months. For the year, our forecast is to have a growth of 2% combining Brazil and Argentina for the sales of heavy vehicles. In terms of production, a growth in Brazil of 5.7%. In Argentina, a growth of 9.5%. Combined figures, 5.8% of growth. Here, an outlook for the closing of the year of a growth of 4%. Positive numbers, positive outlook for the end of the year. Last week we had Fenatran trade fair. Very busy, lots of people present and heavy vehicle makers were there. Last year we introduced a new Euro 6 technology to meet Euro 6 emission targets.
As a consequence, we have an increase in the price of vehicles because we're adding technology. But, we'll have a more efficient fuel consumption. So what we hope to see is a drop in the sales for 2023 for heavy vehicles. But that may be offset. It may even be surprise because of this offset between a higher price of the vehicles and on the other hand, a lower fuel consumption or a lower operating cost. For light vehicles, we expect for 2023 to have growth as well. So for heavy vehicles, we have this effect coming from the Euro 6 emission targets, and for light vehicles, we expect growth. Moving on to the next slide, please. On slide number five, we have vehicle production, North America and Europe, the two main export markets for MAHLE Metal Leve.
North America, first nine months, 2022 as compared to last year, a growth of 10.9% for light vehicles, medium to heavy vehicles, 14.6% of growth. In Europe, light vehicles, a drop of 2.9%, and for heavy vehicles, a drop of 3.3%. When you combine North America and Europe, you see a growth of 3.5%. Europe being more impacted by the war in Ukraine and the shortage of components, supply chain inflation. More impacted in the U.S. The forecast for the whole year 2022 in North America is a growth of 9% for light vehicles and a growth of 12% for heavy vehicles. In Europe, the outlook for the year is at a - 3% for light vehicles and - 5% for heavy vehicles. Next slide, please. Now, a bit about our net revenues performance.
On the first chart, we have Q3 2022, as opposed to the third quarter 2021, Q3 last year. On the last column, we have the percentages, original domestic equipment, a growth of 28%, original equipment, domestic export, original equipment, 12.2%, a subtotal for OE 19.6%. Aftermarket, a growth of 47.3%. Aftermarket exports 7% up when you combine aftermarket numbers 37.4%. A total growth in Q3 when compared to Q3 2021, 26.3%. As Nathan mentioned, a significant growth in revenue when compared to the previous period. A very strong quarter in terms of sales revenues. Now, on the bottom part of the slide, we have nine months of 2022 when compared to the first nine months of 2021. Also looking once again at the last column on the right. OE domestic, a growth of 22.3%, above the reference number, which is the production of vehicles.
The performance of money for OE domestic, coming out at above market levels, foreign exchange impact of 1.4% relative to sales to Argentina. We do have an impact from the exchange rate, from pesos to BRL. A growth of 23.7%. The main reasons, the main drivers for that growth are a mix of clients, a favorable client mix for MAHLE Metal Leve S.A. Also the sale of tools for new projects and an increase in market share. Those are the three main drivers behind that revenue being above market levels. As for aftermarket, export a drop of 1.1%, still on original equipment, the foreign exchange impact of 4.4%. The volume over price impact comes out at 3.3%. North America performing since vehicles production above 2021, and in Europe, we see a drop.
That offsetting dynamics led to that 3.3%, eliminating the negative exchange rate impact of 4.4%, the net number is -0.1%. A final number of growth of 9.2% for original equipment. Aftermarket, a growth domestically of 31.6%, including the negative impact on foreign exchange rate at 16.3%. Here, once again, sales in Argentina, the peso when converted to BRL, have this negative impact. When we remove that foreign exchange impact, a growth of 40. 31%. Aftermarket export 18.5% of growth, a positive impact of 1.2% coming from Forex, a growth of 17.4%. The main drivers for this performance, a higher demand. We saw sales and production for light vehicles at a level which was similar to what we had in 2021. That boosts the market for parts in the aftermarket segment, and that benefits our revenues on that front.
Also, we gain a market share also in the aftermarket segment. That also explains that growth in revenue. Final number, 28.7% in aftermarket. OE plus aftermarket, a final growth of 16.3% in the net revenues performance. Next slide, please. On this slide, we have exports by region, and we can see a drop in Europe, 44.1% - 38.1%, linked to the vehicle manufacturing market, and a growth in North America and in South America. That result for South America in 2022, 17.7%, is historically a normal level in terms of market share for that market for MAHLE Metal Leve. I turn the floor now back over to Nathan, and I will be available at the end of the presentation for the Q&A session. Over to you, Nathan.
Thank you, Daniel. On this next slide, as explained before, Q3 2022 saw a level of sales which was quite high. From that, we were able to convert that into a gross margin, which was also quite high when compared to the 27% we had last year. Those 3% above will explain or will help explain the increase in the numbers for the quarter. There are several underlying factors that led to this margin, including the mix, as Daniel just mentioned. Also we have a good level of transferring on to clients, higher prices, taking into account inflation and price increases in raw materials. When comparing to the first half, the pass-through level was high, and because of that, the third quarter was good because of the combination of all those factors.
For the nine months until now, year -to -date, we are still lagging a bit behind last year's numbers, but we have closed the quarter with a gap which was better or narrower than we had with the second quarter. We have impacts coming from inflation, impacts coming from raw materials shortage and high prices. Prices are better now than in the second quarter, but the resin prices, for example, are still high, similar to what we had in the first half. Again, there is a mix of raw material prices now having a significant impact, but the pass-through level was better in Q3 than in Q2. Next slide, please.
On this slide, we have the main expense categories below gross margin. Overall, no major difference, no major variations when compared to 2022 and when we compare 2021 and 2022. The percentage number in sales are quite similar when you look at those columns year -on- year. As for selling expenses, the absolute number sits above the level of 2021, but the main reason for that was the aftermarket sales. It is above, but the reason is the aftermarket sales performance.
The 7.1% when compared to 6.7%, that is a normal variation when you take into account price inflations and so on. As for SG&A, no major news here, 2.8%. Not much to say, no major variations as I mentioned. The same goes for technology and product development, slightly below in percentage numbers, 1% down when compared to 1.5%, but the absolute number is similar for both periods. I will now turn the floor over to Fábio, who will be talking about our net financial numbers for Q3. Over to you, Fábio, and I will be back for the Q&A at the end of the presentation. Fábio.
Good afternoon, everyone. Thank you for participating in our earnings call. A bit of our net financial result. We will start by talking about Q3, where we had a financial net number of BRL 16.3 million, and the breakdown is the following. Net interest rates, 10.4% in interest income from investment out of a volume average of BRL 191.8 million. The remuneration was 13%, and the cash we have in Argentina, BRL 56.9. In terms of interest rates with loans, BRL 5.2 million, coming from an average volume of debt of BRL 405 million at 4% per annum. Other interest expenses, including received interest from clients by other interest rates, and also interest from the ICMS tax credit on the PIS and COFINS tax basis. As foreign exchange variation, we had BRL 10.9 million positive.
The main result came from the Forex variation from ACC and NCE, which were fundings we conducted, performing a total combining Forex hedging and the Forex for CCI of BRL 10.9 million. Net monetary variation, BRL 4.8 million, coming from tax provisions and labor provisions as well, leading to a total of BRL 16.3 million. When we compare with last year, we saw an improvement of BRL 10.4 million. In terms of year -to -date, doing the same math, BRL 34 million of net interest, BRL 10.5 million of interest coming from loans, and BRL 13.7 coming from other interest revenues. Once again, we are including interest on our tax credits. When we look at the Forex variation, last year, we had BRL 4.7 million in year -to- date. Sorry, BRL 2.5 million in year -to -date, and this year, BRL 4.7 million year -to -date.
Once again, I highlight for the Forex variation for ACC and NCE, BRL 46 million, and Forex variation, once again, we are combining Brazil, Argentina, and Austria, BRL 44.4 million. Monetary variation at BRL 22 million. Once again, provisions for labor and tax issues, combining to a total of BRL 7.4 million year -to -date, as opposed to BRL 12.1 million registered last year. An improvement of BRL 19.5 million in terms of financial results. On the next slide, please. On the next slide, we will be talking about our debt. On the first chart on the left-hand side, the position on September the 30th, we have a net debt level of BRL 58.6 million, and compared to December 31st, BRL 246.4 million, December 31st, 2021. That change in scenario from positive to negative was driven by the payout of interest on capital, which happened mainly this year.
On the right-hand side, you see the main credit lines where we work with Finep, the first one, and ACC & ACE. Finep in September had an average price of 6.64%, where the ACC & ACE 1.64%, as you can see. Combining those figures, we have an average cost of 4.03%. In December 2021, that figure was for Finep 4.87%. Just as observation, as an aside, that number went up from 4.87% to 6.64% because it is indexed in a different interest rate table. Then 0.98% for NCE, a weighted number of 3.01%.
In the bottom, our maturity timeline for the short and long run, May 2023 and 2024, BRL 145 million and BRL 165 million next year in May. When we add up BRL 201 million, BRL 204 million long and short run, we add up to approximately BRL 406 million in terms of operations that we have performed to supply our cash. On the next slide, if you will. CapEx and depreciation for the year, we have invested BRL 61.6 million, which accounts for 82% of our depreciation, which is approximately BRL 75 million, representing 2% of our net sales revenue.
Last year, BRL 44 million For the first nine months, representing 58.9% of total depreciation, which was BRL 74.9 million last year. For nine months, 1.7% of the net sales revenue. It is worth mentioning that investments speed up usually in Q3 and Q4. For Q4, those numbers should go up and cover all depreciation expenses. Now moving on to the Q&A session. Both Nathan and myself, and also Daniel will be available for your questions and comments. Thank you very much.
Thank you. We will now start the Q&A session for investors and analysts. If you have a question, please click on the raise your hand icon. If your question has been answered, you may remove yourself from the queue by once again clicking on the same button. Please stand by as we poll for questions. Our first question comes from Pedro Fontana, from Bradesco BBI. Please, Pedro, your mic has been unmuted.
Good morning, everyone. Congratulations. On your numbers. Thank you for taking my question. I would like to talk about the margin quite strong in Q3. What can you expect for Q4? If you expect some more pass-through of costs to be performed, Q4 is usually slightly weaker because factories shut down, but at the same time, vehicle production in Brazil is going up. What can we expect margins to behave in Q4 and also for 2023? What do you expect in terms of sustainable margins for next year? Thank you.
Well, thank you, Pedro. Thank you for your questions and your words. Yeah, it's a bit difficult as usual. Q4, we always have weaker sales or lower sales, collective PTOs in December, so the levels of sales tend to decrease. There's also some noise in the global economy after the elections here in Brazil, after the midterm elections in the U.S. As Daniel said also, the war in Ukraine is also a factor, inflation in Europe. So it's a bit for us to understand clearly what's going to happen in the coming months and weeks. But the level in October was good, was okay. So let's wait and see what happens in November and December. Specifically for gross margins, to your question, it depends on the level of inflation. It depends on the prices of raw materials. Those are the main drivers for our margins behaviors.
If raw materials remain at the same level, we'll see what happens to the gross margins. In any event, Q4 is slightly more challenging, as you know, as you said. It depends on whether or not clients still have semiconductors available, other parts. This year, last year, there was a shortage on that front. That'll happen on a day-by-day basis. If that problem re-emerges, the sales level will be impacted. So let's wait and see what happens in Q4. The same goes for next year, 2023.
We'll have to wait and see what happens with inflation around the world, and that has an impact on the export market here in Brazil, of course. Inflation is pretty much under control, but around the world, it's a difficult situation. Energy prices going up in Europe. So again, difficult for us to give you an answer around gross margins. But right now, as we speak, Q3 and Q4 gross margins is very good considering the scenario. That was the answer to your question. I hope I have answered.
Thank you.
Once again, if you have a question, please press the icon, Raise Your Hand. Please stand by as we poll for more questions. Thank you. Once again, if you have a question, please press the Raise Your Hand icon at the bottom of your Zoom screen. Please stand by as we poll for questions. This concludes the Q&A session. I'd like to turn the conference over to Mr. Quye for his final remarks. Please, Mr. Quye, you may carry on.
Well, thank you so much once again for participating in our call today. Our results are here for Q3. Numbers are very good for Q3. We are quite excited with the numbers. Thank you for the questions also, and for being here with us today. We'll see you next quarter, next year, actually, to discuss Q4 results. Have a nice day, everyone. Thank you.
MAHLE Metal Leve video conference is over. Questions which have not been addressed will be forwarded to the company's IR team. Thank you once again, and have a nice day, everyone.