Cambuci (CAMB3) Q2 2024 earnings summary

Executive summary

• Consolidated net revenue reached R$112.9 million in 2Q24, down 3.8% year-over-year; 1H24 revenue was R$223.0 million, a 3.6% decrease from 1H23.

• Gross margin improved to 49.8% in 2Q24 (up 1.2 p.p.) and 50.8% in 1H24 (up 2.4 p.p.); EBITDA margin was 27.1% in 2Q24 and 28.3% in 1H24.

• Net income rose 16.5% year-over-year to R$25.4 million in 2Q24, with a net margin of 22.5%.

• Strong cash generation and significant reduction in net debt, with cash exceeding gross debt by 10x.

• Strategic focus on zero net debt, margin preservation, low inventory, and innovation reinforced financial fundamentals.

Financial highlights

• Consolidated EBITDA was R$30.6 million in 2Q24 (margin 27.1%), down 5.8% year-over-year; 1H24 EBITDA was R$63.0 million (margin 28.3%).

• Net income for 1H24 was R$46.1 million, up 9.8% from 1H23.

• Operating cash flow reached R$49.4 million in 1H24.

• Net debt fell 63.7% from YE23; cash and equivalents at R$38.2 million, debt at R$3.7 million.

• Dividend and JCP distributions totaled R$6.2 million in 1H24.

Outlook and guidance

• Management expects 2024 to remain challenging due to high interest rates and macroeconomic uncertainties.

• Company maintains a countercyclical stance, focusing on innovation, cost control, and operational efficiency.

• Capex guidance for 2024 is R$25 million.

• Market expectation is for 5% growth in the domestic market in 2024.