Allpark Empreendimentos Participações e Serviços (ALPK3) Q1 2023 earnings summary

Executive summary

• Q1 revenue reached a record R$305.5 million, up 25.2% YoY; cash gross profit rose 46.8% to R$81.4 million and adjusted EBITDA increased 69.2% to R$51.7 million.

• Net loss narrowed to R$30.3 million from R$43.3 million in 1Q22; adjusted FFO rose to R$21.8 million from R$2.4 million.

Financial highlights

• Net revenue was R$305.5 million, up 25.2% YoY; reported gross profit reached R$101.1 million, up 37.6%, and reported gross margin was 33.1%, up 3.0 pp.

• Cash gross profit reached R$81.4 million, up 46.8%; cash gross margin was 26.7%, up 4.0 pp.

• Adjusted EBITDA was R$51.7 million, up 69.2% YoY; adjusted margin reached 16.9%, versus 12.5% in 1Q22.

• IFRS net loss was R$30.3 million, down from R$43.3 million in 1Q22; adjusted FFO was R$21.8 million, versus R$2.4 million.

• Operating result before financial result and taxes was R$32.9 million, versus R$11.7 million; net financial expense increased to R$61.6 million from R$54.3 million.

Outlook and guidance

• Focus on execution, contract renewals, new business and financial discipline; continued revenue growth, cost control and lower leverage are expected to support net-result recovery.

• New operations, low churn, maturation of digital and AutoTech revenue streams, and airport contracts support organic growth; financing-cost benefits from March issuances were expected fully from 2Q23.

• Four of 11 CCR airport contracts were operating; ~3,600 additional spaces were scheduled to come online in the following months.