Brazilian lubricants producer and distributor Moove saw its gross profit margin slip in the third quarter of the year to the lowest level since the end of 2022 as sales fell while costs rose.

Profit margin fell to 23.6% in the three months to end-September, down from 24.6% during the second quarter and from 29.5% during the same period a year earlier.

The profit margin fell even as sales of 2.45 billion Brazilian Real ($460 million) in the third quarter rose to the highest this year.

Revenue got a boost from a recovery in base oils and lubricants sales volumes closer to last year’s levels.

Sales volumes dipped by more than 10% in the first half of the year after a fire at Moove’s Rio de Janeiro lube blending plant in February.

Revenue in the three months to end-September still fell by 7% and for a third straight quarter from year-earlier levels.

The fall in sales contrasted with a 1% rise in costs of goods sold to the highest since the first quarter of 2023.