Camil Alimentos (CAML3) Q1 2025 (Q&A) earnings summary

Executive summary

• Net revenue reached R$2.9 billion in 1Q24, up 9.3% year-over-year and 8.1% sequentially, with EBITDA of R$255 million (+28.2% YoY), reinforcing strong market positioning in South America.

• Net income increased 22.6% year-over-year to R$78.5 million, but declined 26.4% sequentially.

• Volume grew 20.2% sequentially but declined 4.6% year-over-year, mainly due to a 17.5% YoY drop in international volumes from Uruguay export timing.

• High-value categories (pasta, coffee, biscuits, fish) and new product launches drove growth, while operational resilience was demonstrated during floods in Rio Grande do Sul.

• ESG initiatives advanced, including inclusion in B3's Corporate Sustainability Index and significant social support for flood-impacted regions.

Financial highlights

• Gross profit reached R$626 million (+13.8% YoY), with a margin of 21.6% (+0.9pp YoY).

• EBITDA margin improved to 8.8% (+1.3pp YoY), with SG&A expenses flat nominally and dropping as a share of net revenue.

• Net debt stood at R$3.2 billion, with net debt/EBITDA at 3.3x, within covenant limits.

• Capex totaled R$62.9 million, focused on new grain and pasta plants.

• Working capital days at 92, up 16 days from 4Q23, reflecting seasonality in rice procurement.

Outlook and guidance

• Management is optimistic for Q2 volume recovery as delayed harvests and replenishment normalize, with continued focus on high-value categories and operational synergies.

• Anticipation of higher wheat prices and planned price increases for pasta and cookies.

• No formal guidance provided, but confidence in continued growth and profitability improvements.

• ESG initiatives and inclusion in B3's Corporate Sustainability Index remain a priority.