Good morning everyone, and welcome to the video conference regarding earnings release for the 4th quarter 2023 of Iochpe-Maxion. I'm Rodrigo Caraça, Investor Relations Manager of the company, and we will be conducting today's video conference. Present in the video conference and available for a Q&A session are Mr. Marcos Oliveira, CEO from the company, Mr. Renato Salum, CFO, and Mr. Luis Fernando Abreu, Director of Investor Relations and Strategy. We inform that this video conference is being recorded and will be made available in the company's Investor Relations site where the presentation is available. I highlight that if you need simultaneous interpretation, we have that tool available in the icon of the globe that says "Interpretation" on the bottom of your Zoom screen. Select it, choose your preferred language, Portuguese or English, and if you - for those listening to English - there's an option of muting original audio.
For the Q&A session, we advise you to send your questions through the Q&A icon at the bottom of your screen. For the dynamics of the session, your names will be announced for you to ask your question live. At that time, you're going to get a request to open your microphone. If you want to, before we move on, we'd like to disclaim that eventual declarations that might be made during the video conference related to the perspectives of business projections and operational and financial goals are beliefs and assumptions of Iochpe-Maxion, based on information currently available to the company. Future considerations are not performance assurance, involving risks, uncertainties, and assumptions regarding future events and might not occur. We would like to pass the floor to Mr. Marcos Oliveira, CEO of Iochpe-Maxion.
Good morning and welcome to the earnings release video conference for the 4th quarter 2023 of Iochpe-Maxion.
2023 was marked by a scenario of economic and geopolitical uncertainties globally. Despite this uncertainty, the production of the main automotive markets presented growth due to the consistent improvement in the global supply chain. The segment of commercial vehicles in Brazil presented a significantly lower production because of the transition of Euro 5 to Euro 6, impacting negatively the mix and profitability of the company. On the other hand, other regions we observed growth aligned with market performance, promoting the benefit of the geographic diversity present in our business model. We highlight a growth of 13.3% in the gross profit of the 4th quarter 2023, with a margin of 10.9% and a growth of 3.1% when compared to the same period of last year.
The improvement is related to the stabilization of raw material prices compared to inventory costs, improvement of operational efficiency in the company, and transfer of cost increases. For our long-term agenda, we continue with the ramp-up of volumes in our aluminum wheels factories in China. We are advancing in the building of our forged aluminum wheels factory for commercial vehicles in Europe, and we have gained new businesses in the segment of electric vehicles in both divisions of the business, all in line with discipline in capital allocation, strategic priorities of the company seeking to reduce net debt. Following with the slides, in slide number 2, we can observe the projections of IHS and LMC Auto for global production of vehicles. For light vehicles, we can observe a growth of 10% in the production of light vehicles in 2023 when compared to the year 2022.
For the year 2024, the projection indicates stability in global production at a very healthy level of 90 million vehicles in 2024. In the segment of commercial vehicles, after growing 12% in the year 2023, we observe a projection of 2% growth in the global production of commercial vehicles, with a total of 3.4 million units. In slide number 3, we can observe the main highlights for the 4th quarter 2023. We have obtained a net revenue of BRL 3.5 billion in the 4th quarter in 2023, a reduction of 16.3% compared to the 4th quarter of 2022. We had a gross profit of BRL 380.2 million, with a gross margin of 10.9% in the 4th quarter, an increase of 17.3% and 3.21% compared to the same period of 2022. Our EBITDA had a growth of 9.9%, with a recurring EBITDA of 8.3%, an increase of 2 percentage points.
Financial leverage measured by the division of net debt over EBITDA, we have reached 2.93 times in the 4th quarter of 2023 compared to 2.26 times in the 4th quarter of 2022. We had a reduction of net debt of BRL 242.1 million in the 4th quarter of 2023, total liquidity of approximately BRL 3.675 million in the 4th quarter of 2023 compared to BRL 3.917 million in the 4th quarter of 2022, a liquidity index of 2.12 times. In slide number four, we can see the consolidated net operating revenue for 2023 of BRL 3.484 million, a reduction of 16.3% when compared to the 4th quarter of 2022. Through the whole year of 2023, we had consolidated net operating revenue of BRL 14.955 million, or a reduction of 11.8% when compared to 2022.
The lower volume of production of commercial vehicles in Brazil, the reduction of costs in raw materials reflected in the sales prices, and the negative exchange rate variation of BRL 2.6 million in the 4th quarter of 2023 and of BRL 312.9 million in 2023 had a negative impact in the company's net operating revenue. In slide number 5, looking at revenues per product, we can see the contribution of aluminum wheels for light vehicles that represented 30% of the company's revenues in the 4th quarter of 2023, very consistent with 31% throughout the whole year of 2023. The segment of steel wheels for commercial vehicles represented 21% in the 4th quarter of 2023 and 22% for the whole year of 2023. Steel wheels for light vehicles represented 25% of the company's revenue in the 4th quarter and 24% for the whole year of 2023.
The segment of structural components for commercial vehicles represented 21% in the 4th quarter and 21% throughout the year 2023. We can see an increase of light vehicles' share throughout the year of 2023 and a decrease in the revenue share from structural components impacted by the drop in the production of commercial vehicles in Brazil. In slide number 6, in the revenue per client, we can see the growth in the share of the production of light vehicles and a decrease in the share of commercial vehicles, reflecting the variations in the market, variations in the price of raw materials, and the impact of the drop in the production of commercial vehicles in Brazil in 2023. In slide number 7, the operational performance of the company in South America, we see a reduction in net operational revenues of 28.5%, with revenues of BRL 901 million.
South America represented 30.3% in the 4th quarter of 2022, now represents 25.9% in the 4th quarter of 2023. Revenues for South America were negatively impacted by the decrease in production of wheels, chassis, and side members for commercial vehicles due to the change in engine regulation from Euro 5 to Euro 6, and had a positive impact thanks to the increase of the production of aluminum wheels for light vehicles. In terms of the Brazilian microperformance, we can see a decrease in the production of light vehicles of 3.6% and of 36.1% in the production of commercial vehicles in the 4th quarter of 2023 when compared to the same period of 2022.
In slide number eight, the operational performance for North America shows a decrease in the net operating revenues for the company of 12.8%, with a total of BRL BRL 1.04 billion in the fourth quarter of 2023, with North America representing 27.7% of our revenues in the fourth quarter of 2022, now representing 28.8% in the fourth quarter of 2023. The reduction in raw materials costs reflected in sales prices, the increase of steel and aluminum wheels volume for light vehicles, and the negative exchange rate variation of BRL 60.8 million were some of the drivers in the variation of the share of North America. When we look at market performance in terms of vehicles produced, we can see an increase in the production of light vehicles in North America of 5.9% in the fourth quarter of 2023 and a decrease in the production of commercial vehicles of 1.6%.
In slide number 9, observing now the European market, we have net operating revenues of BRL BRL 1.225 billion in the 4th quarter of 2023, a decrease of 11.4% when compared to the 4th quarter of 2022. The share of Europe in the consolidated net operating revenues of the company has grown from 32.2% in the 4th quarter of 2022 to 35.2% in the 4th quarter of 2023. This revenue was affected mainly by the reduction of the raw materials costs reflected in the sales price of our products. In terms of market performance in numbers of vehicles produced, we can observe a decrease of 1.1% in the production of commercial vehicles and a growth of 5.7% in the production of light vehicles in Europe in the 4th quarter of 2023 compared to the 4th quarter of 2022.
In slide number 10, we can see net operating revenues of BRL 353 million in the 4th quarter of 2023, or a decrease of 3.1% when compared to the 4th quarter of 2022. Asia and other markets represented 80.8% in operational net revenues of the company for the 4th quarter of 2022, now represented 10.1% in the 4th quarter of 2023. We had a negative impact due to the raw material costs reflected in sales price, a negative exchange rate variation of BRL 27.3 million in the 4th quarter, and a positive impact of the increase of steel wheels volume for commercial vehicles.
Looking at some of the main markets in the region in terms of vehicles produced, we can see an increase in the production of light vehicles in India of 4.7%, a decrease in the production of commercial vehicles in India of 7%, and a decrease in the production of light vehicles in Thailand of 13% in the 4th quarter of 2023 when compared to the 4th quarter of 2022.
We have achieved a gross profit of BRL 380 million in the 4th quarter of 2023, or a growth of 17.3% when compared to the 4th quarter of 2022. We had a growth of 3.1% in the gross margin for the 4th quarter of 2023, growing from 7.8% to 10.9% in the 4th quarter of 2023. Through the whole year of 2023, we achieved a gross profit of BRL 1.508 million, or a reduction of 16.6% when compared to the year 2022.
Our EBITDA for the 4th quarter of 2023 was BRL 289 million, or a reduction of 0.7% when compared to the 4th quarter of 2022. The EBITDA margin was 8.3% in the 4th quarter of 2023 compared to 7% in the 4th quarter of 2022.
When we look at Adjusted EBITDA reconciliation in the 4th quarter of 2023, we can see an Adjusted EBITDA margin of 8.3%, as you see in slide 12, compared to 6.3% compared to the 4th quarter of 2022. Throughout the year of 2023, we had an EBITDA of BRL 1.253 million, or 27.9% lower than the year 2022. In slide 13, we can see a net loss of BRL 7 million compared to the net loss of BRL 141 million in the 4th quarter of 2022. We had net profit of BRL 31 million during the year of 2023 compared to BRL 279 million in the year 2022.
In the 4th quarter of 2022, we had a negative impact of BRL 181 million due to a settlement with Mexican Tax Authority in the 4th quarter of 2022. We had investments of BRL 222 million in the 4th quarter of 2023, or a reduction of 13.9% compared to the 4th quarter of 2022. For the whole year of 2023, we had investments of BRL 552 million, or 6.8% below the year 2022.
The main investments in the region were related to capacity increase to meet demand of the commercial vehicle segment in North America and the construction of the new aluminum wheel plant for trucks in Europe. In slide 15, we can see the financial leverage of 2.93x at the end of 2023 compared to 2.26x at the end of the year 2022. We had a net debt reduction of BRL 242.1 million in 2023 compared to the year 2022.
LTM EBITDA reduction is the main factor for the increase in leverage in 2022. In the year of 2022, total liquidity, which is cash and cash equivalents, plus RCF of BRL 3.462 billion in the 4th quarter of 2023 compared to BRL 2.787 million in the 4th quarter of 2022. On slide 17, looking at the composition of the company's gross debt, we can see that at the end of the year, we ended with 45.2% of our gross debt in Brazil, 36.6% in euros, 14.6% in U.S. dollars, and 3.5% in other currencies.
Looking at our total liquidity of BRL 3.462 billion at the end of 2023, we can see that it made up of BRL 2.962 million in cash and BRL 500 million in RCF revolving credit. We can also look at maturity tower over the next few years, with BRL 1.622 million in the entire year of 2024.
Also, company's rating raised by from BB- to BB in the global scale and from BrAA to BrAAA on a national scale, highlighting for the company in the turn of 2023 to 2024. Slide 18, some of our main launches were the personalized wheels for the Fastback from Stellantis here in Brazil, which shows the Multi-Color styling technology and how to customize the capacity of our products.
The launch of aluminum wheels for Honda in Mexico, showing an attractive design on aluminum wheels, steel wheels for Toyota in Turkey, showing a cost- and affordable styling solution for the urban mobility. And our share in the electric vehicle segment, which continues to grow with the launch of a product in China demonstrating reduction in premium vehicle markets. On slide 19, we have an update on ESG.
We remained in the B3 Corporate Sustainability Index portfolio with an improvement in our performance. An improvement in the performance of the EcoVadis rating with an increase of 8 points compared to 2023, and B grade on the CDP positioning among the 37% of the best companies achieved in this score. We now open the question and answer session. Now we are moving to the question and answers section, taking a look at the answer of the company, reminding you that in order to answer your questions, please use the button on the chat. We are going to announce your names so you can be reminded. At this point, a request to activate your microphone will appear on the screen. We have the very first question from Fernanda Urbano from XP. She's an analyst, and you can open your microphone so you can make your question.
Good morning, guys.
Can you all hear me? Yes, we can. Good morning. Thank you so much for answering my question. So, regarding revenue, and on the 4th quarter, a margin on raw material and a margin very stable for the next quarter. I would like to know if you could make comments on a quality matter. What are you expecting as a margin return for this year, 2024, in terms of recovery and volumes in the mix of commercials and the prices being compensated, making up for the ups and downs that we have seen in the market so far in the beginning of 2024? That's my question. Thank you so much for your time.
Fernanda, thank you so much for your question.
So, usually, the 4th quarter and the 1st quarter of every year are the ones that we have some lows in terms of margin, in terms of production, volumes, vacations from the industries, and other variables we have between the end of the year and the beginning of the year. The volume of vehicles in Brazil will be growing from time to time between the 1st quarter and the 3rd quarter. Taking into account these factors, stabilizing the prices of raw material, globally speaking, between the 3rd quarter of 2023 and the 1st quarter of 2024, taking into account the action plan that we have started executing this year, we are expecting to have a two-digit margin throughout the 2nd quarter of this year. Absolutely, there may be some variables in terms of accelerating or reducing the speed of such a transition.
We just need to make sure that the recovery of the Brazilian market has had a growth of 40% since the last year, and we had an impact of more than BRL 1 billion in our revenue from 2023 to this year. So, we have a gradual recovery, which is extremely important for us in terms of growth, and the 20% of our base. Anfavea mentioned 32%, and also LMC talks about a higher number, but we do believe that a recovery scenario for commercial vehicles in Brazil and an even more positive scenario in North America and a smaller growth in Europe will enable us to have better growth in 2024 for our country. It is extremely clear. Thank you so much. Our next question is from Felipe Lenza. He's from Citi. Felipe, go ahead.
Good morning, Marcos, Luis, Renato.
My question has to do with the MOVER program and the market on electrics in Brazil. We had some growth, a progressive growth, when it comes to these taxes that we have been receiving in Brazil, and this MOVER program, when it comes to the industry, factories, and its installation. How can we deal with such a biodiversity? Chery also has been gaining some new markets in terms of advertising in Brazil. So, is it something that we should be optimistic about?
Felipe, good morning. I do believe that the scenario for Brazil in the next years is positive, and it has everything to do with more than BRL 90 billion invested in our region all the way to 2032. So, indication trust in the Brazilian market reminds us of the level of production of vehicles.
This industrialization of our market has reached all the way up to 4 million vehicles in Brazil. Not being conservative but undertaking the responsibility that we will get to 3 billion vehicles in Brazil in the next years, I believe that this is such a positive scenario, and it indicates that the sector can expect for the next years investments from the industry as being a reflection of such a growth. When it comes to electric vehicles, this is a reality, a brand new reality, globally speaking, and we have the privilege to be able to work on that back in China, Europe, United States, and we have been keeping up the good numbers with them, and we have been adapting our products to add value and be more active in the segment in the next years.
Something that we mention a lot regarding Maxion is the way we see the industry, either an electric vehicle or a traditional one with hydrogen cells. Our products, wheels, and structure, they will keep on being an active participant of this industry. So, with our ability in engineering, manufacturing, by adapting our products, for example, when it comes to electric vehicles, in terms of locations such as Tokyo, for example, we have such a quality in terms of this industry, and it is reflected in the global industry for the next years. In the case of our country, Brazil, we saw a growth in electric vehicles, particularly in Brazil between the 2nd and 3rd quarter of 2023.
I believe this is positive for our market, but we need to consider that our country being a giant continental country, taking into account the electric capability that we have in terms of offering solutions to assist on being as neutral as possible on carbon and having flex engines. This will offer a positive and very interesting scenario for Brazil throughout the next years, having an interesting mix of vehicles in our internal production, internal manufacturing. So, Brazil can have an improvement in an organized way in terms of having a new reality, globally speaking, and this automobile can be possible to be bought by the final user, by the final consumer. So, this is an acquisitive power that the Brazilian consumer will have very different from the European or the American consumer market.
This is why having this organized transition can be very positive, and we can enjoy this growth by offering products with high technology, state-of-the-art products, by reducing the issue of such a composition of raw material in Brazil in the future.
Perfect. Thank you so much, Marcos.
Our next question is from Andressa Varotto. She's a sell-side analyst from UBS BB. Andressa, please go ahead.
Hello. Good morning. Thank you so much, Rodrigo, Marcos, Renato, Luis. Thank you so much for taking my question. I have two questions I would like to make. The very first one, we had an issue in the United States in the 4th quarter, and I would like to talk about it. The next question is a follow-up on business vehicles in Brazil. Nowadays, we have an expectation in the market, but with an open range.
Some people mentioned 30% on growth, on manufacturing. Other markets state 20%, 10%. But when it comes to the industry and the manufacturing, what is your view and your opinion for 2024? Thank you so much. Andressa, good morning.
Thank you so much for your question. So, the issue we had in North America in the 4th quarter had a small impact when it comes to this strike action they made. So, they were back in manufacturing these products, and everything that they lost, in the end of the day, it was a low-impact loss. We can see that from last year. Our revenue has improved in terms of light vehicles in North America, and it ended up being very positive with a good effect, even though we had this strike in the 4th quarter.
When it comes to business automobiles, we have a beforehand traditional planning based on the information we have from the industry in the market. So, basically, we work since the very beginning with the planning, estimating a 20% of growth in the business vehicles. And Anfavea talks about a 30%, and LMC talks about a 40%. But communicating individually with the industry, they are very near the 30% of growth. So, I believe this is positive. We plan ourselves in a conservative and traditional way because we do know our capability, especially in the area of wheels and components in terms of structure. Although the movements and the production we have in our factories can speed up our results and also the way we will recover in terms of margin in Brazil in 2024.
I believe that the general feeling we have is that the reduction on the interest fee and taxes throughout the year will have around 9% on the basic fees. I believe this is extremely positive because with the economic growth, the reduction of costs, financially speaking, and the fleets, the industry with new assets, new trucks, new buses, it will be reconsidered in terms of investment. We didn't have such a thing as that in 2023. This change on the way we deal with that, even though we have sometimes a scenario of uncertainty in terms of interest and fees, taxes in Brazil, the planned growth for 2024 will bring more trust so we can reach more assets, buses, trucks. All this fleet will allow us to have a positive cycle.
For the Brazilian industry, this is a very interesting scenario for us, just remembering that we had an investment in 2023 to increase our capability to produce wheels and also for agriculture, area, manufacturing, equipment. We were operating already with extra shifts, extra time from our workforce since 2022. So, with this increase on our capability in 2023, we will be able enough to produce in an efficient way higher volumes when it comes to what the industry is requesting. So, we do expect that it will be concrete enough to have such a new reality with a higher and better level for the next year.
Thank you so much. So, our next question is from Victor Mizuzaki from Bradesco BBI, sell-side analyst. Go ahead, Victor.
I have two questions. I talked about the forged aluminum wheels.
Can you give us a little bit more view of what to expect in terms of CAPEX for 2024 for the region? And regarding the operations in China, looking at the numbers for the quarter, we are counting on a loss of about BRL 4 billion per quarter. How can we expect to ramp up so we can achieve a break-even or generate profits in China? I know if it depends on the ramp-up or how are things going.
Good morning, Victor. Thank you for the question. For 2024, our main planned investments are for sure the building of forged aluminum wheels in Europe, as the investment you mentioned, and the ramp-up of production for chassis and tie bars and structural components in North America. These are our key investments for 2024 for various regions.
Starting with North America, we have reached our maximum production capacity in our factory in Castaños, in the north of Mexico, which led us in 2023 to a not-so-efficient production in the sense that the truck industry in North America has reached a level of over 600,000 trucks in 2023 above our installed capacity. That has forced us to work with additional shifts over time, working seven days a week, 24 hours a day through a much part of last year. But in terms of operational efficiency, that's not ideal, and it really bites into our results due to the additional cost, the additional effort to continue to meet the demands in North America. For 2024, we have different forecasts. When you look at LMC, they foresee a drop in the production of commercial vehicles.
We talk to the OEMs, and they talk about stable volumes with a possible very small decrease. They still have a large volume that they need to deliver. So, they see an even more positive scenario for 2025 and 2026 because in North America, they should have a change in legislation regarding emissions for 2027. So, they foresee stability or a very small drop in 2024, but with a very significant growth in the truck market in North America for 2025 and 2026. That is why we are investing in increasing capacity for the production of chassis in North America and should be happening throughout the year 2024. The other important investment is the construction of the forged aluminum wheels to meet the European market. This is a growing market. It should be growing in the next few years.
Steel wheels for commercial vehicles will continue to be the predominant component for this segment in Europe, but for the next few years, we foresee an interesting growth for aluminum wheels for Europe. That's an area where we have very good perspectives of business. And to complete our portfolio of products, we think this product is going to really complete our production globally. We are the only producers of steel and aluminum wheels for light vehicles and steel wheels globally. We have some competitors in different regions, but we don't have competitors that are able to offer this full portfolio of products in the main areas of automobile production globally. We believe these investments are going to complete our portfolio, which makes us even more attractive for the mobility market globally, and will continue to improve our economic and financial results for the next few years.
This aluminum wheel plant has started being built in 2023, should continue to 2024, and it should start production in 2025. So, for the next few years, we believe these are two key projects for the improvement of the results of our company in 2025 and 2026. The investment in the structural component factories in North America is ongoing for the year 2024, and we will be adding capacity for us in that region.
Looking at these two main investments and looking at the other investments we have and efficiency productivity improvement or other changes due to regulations, we plan investments in 2024 similar to the ones we made in 2023 with a little bit of variation up and down, but investments at similar levels that will really position the company in a very interesting level not only for the rest of 2024 but mainly for 2025, 2026, and the next years. With regards to the aluminum wheels plant in China, we started an actual ramp-up last year. The Chinese market, due to the economic conditions in the country, is still in transformation. We are doing business with some interesting clients such as NIO that produces electric vehicles. We started producing for them at the end of last year and should be growing for the next few years.
But this is a gradual process. We are a new player in the market. There are large manufacturers in China, and we intend to gain share with good quality products bringing proper financial results. This is a slower ramp-up product. And when I mean slower, I'm talking about a market with a growing demand but a limitation in terms of production capacity. But we believe that this search aiming for this break-even is going to happen gradually so we can reach the balance in the year 2025. Thank you, Victor.
Our next question comes from Marcelo Arazi, sell-side analyst from BTG. Please go ahead, Marcelo.
Hello, everyone. Good morning. Thank you for answering. I'd like to see how you are thinking of leverage. For the next few years, we are still at a high level of leverage for the fourth quarter, as reported.
So, how do you intend to continue with the products you have just mentioned? And if you allow me to ask a second question to understand, what would be the ideal mix of products for you, considering that for the fourth quarter, that mix affected the margin? How do you see that going forward?
Thank you, Marcelo, for the question. As you have seen, we closed with a final leverage of 2.93x. We see that we had a very relevant impact on EBITDA of about BRL 480 million due to the reduction in production of commercial vehicles in Brazil. And considering all the information we have from LMC, Anfavea, and the forecast of improvement, LMC foresees a growth of over 40%. Anfavea foresees a growth of 30%. We believe that this EBITDA can go back to increasing, growing so that the reduction of leverage will come with this growth.
On the other hand, we had some changes made in working capital. We have reduced BRL 778 million into one when you use a ratio where we get total working capital divided by net sales. We see that we have reached 11.22%. Just to give you an idea, in 2022, we had 14.49%. So, I think we are in the right path. And I believe that with the reduction in the payment of interest, we closed the year you probably saw in our financial statements, we had approximately BRL 400 million at a cost of 5.5% fixed interest with an issuing of debentures to face other ones with a CBI limit. And so, we have a reduction of interest, and we have a drop of interest rates in Brazil.
So, we see possibilities, and we are very optimistic regarding an increase of EBITDA and generating cash to reduce growth debt and better leverage going forward. Marcelo, with regards to the mix of products, traditionally, the segment of commercial vehicles is a strong segment for us. Through the last few years, we have operated at over 50% or 55% of our mix of revenues in commercial vehicle. In 2022, our mix was 49% of our revenues, and it went down to 42% or 43% of our revenues this year. And that was affected by the drop in the Brazilian market. Although we have an interesting movement in North America, we had a drop in production of 40% in Brazil, which affected us in an important fashion.
Our global profile of providing aluminum wheels, steel wheels for light vehicles, and the mix of products we have today, without mentioning the forged aluminum wheels for commercial vehicles that we will have as of 2025, we have a mix close to 50% for commercial vehicles, 50% for light vehicles, which we consider a good, healthy mix in terms of global share, if it's a bit higher as it has been for the next year. But a mix close to 50/50 is a healthy one, and we expect that as the Brazilian market recovers and the North American market continues, we should be approaching this 50/50 mix there. But we work, of course, seeking consistent results in all products we manufacture, be them steel wheels for light vehicles or structural components, wheels for commercial vehicles. We work to have margins in all products that are consistently increasing.
Of course, the value of each unit in terms of components or wheels for commercial or agricultural vehicles, they have different ways due to the amount of raw material used, and that, of course, has an important impact on revenues. But we believe that we are able to work close to this 50/50% mix. That would be quite adequate. But, of course, our goal is to have the same level of margin in all our products. Thank you, Marcelo. Perfect.
Thank you. We have one more question through the chat from Mauricio Habuski. He is an investor, and he asks, "I'd like to know what will be the company's priority for the next few years: increasing revenues or cost reduction and financial expenses reduction?" Mauricio, good morning. Thank you for your question.
Clearly, in our strategy focus from 2023 to 2024, we seek to reduce the company's debt as a whole and improvement in our margins and improving the margins due to cost reduction and better pricing in the market. That combination is very important, and that's our priority for 2024. Of course, we have projects to increase capacity with new products, new technologies that are going to put the company in a very competitive position for 2025 and 2026 with these projects I have mentioned in other questions. These projects are very important for our future, so we cannot stop our investments completely because that would limit the future of the company. Our goal is that our results, our margins, our revenues continue growing, moving forward in the next few years.
But for 2024, our goal is recovering margins, reducing debts, and a growth that can keep up with the trends in the market, allowing us to position our products with more added value and, consequently, better economic results in the next few years.
Thank you. We have one more question through the chat from André Orland i. She's a buy-side analyst from Brave. And he asks, "Can you give us a sensitivity of the variation in revenues for the year regarding price and volume?"
Andrea, in general, the impact of pricing coming from the reduction of raw material costs was definitely important. In our revenues as a whole, more than BRL 1 billion were a reduction of the impact of price reduction related to raw materials. Over BRL 1 billion revenues came from this reduction.
And then you have BRL 1 billion that came from the reduction in the sale in the Brazilian market regarding commercial vehicles. Just to give you an idea, we have about BRL 2 billion that come from these two factors. And they also have an impact from exchange rate variation with over BRL 300 million in exchange variation throughout the year. These are important factors that directly affected our net revenues and that, of course, in a scenario of stable raw material prices that we are achieving for the year 2024 with a relatively stable exchange rate that we expect for the year and with market performance and growth in the market for commercial vehicles in Brazil, we see all this as a positive scenario for the year.
We'd like to remind you that in 2023, we had an important impact of inflation and of the significant devaluation in the markets of Turkey and Argentina. These are important factors that we expect that in 2024, even still expecting higher inflation in these countries, we expect the speed of devaluation not to be as significant as it was in 2023. Thank you for the question. We are now closing our question and answer session, and I'm going to give the floor to Marcos Oliveira for your final considerations.
Thank you all for your participation. We continue to pay attention to the changes in the market, to the geopolitical issues that affect the whole globe, the inflation pressures that are lower but still exist at different levels in different parts of the globe, and the variation in volume of production in our clients, which are important.
Therefore, we adapt quickly in our operations in the different countries and in Brazil to face the current demand for commercial vehicles in a way to reduce the impact of the profitability in our units. We continue focused on productivity gains and production efficiency, new products, new technology in the development of advanced engineering, digitalization, and increased efficiency and strengthening our balance sheet so we can provide sustainable value through time. The video conference-related earnings release for the fourth quarter of 2023 of Iochpe-Maxion is closed. The investor relations department is available to answer any other questions.
Thank you very much, and have a good day.