Cogna Educação (COGN3) Q3 2024 earnings summary

Executive summary

• Net revenue in 3Q24 was R$1,281.6 million, up 0.9% year-over-year, mainly driven by Kroton's strong performance; 9M24 net revenue grew 6.9% to R$4,261.9 million.

• Recurring EBITDA increased 26% in 3Q24 to R$385.0 million, with margin up 6.0 percentage points to 30.0%, reflecting efficiency gains and operational improvements.

• Adjusted net profit reached R$32.8 million in 3Q24, reversing a loss in 3Q23; 9M24 adjusted net profit up 58.1% to R$133.8 million.

• Operating cash generation after Capex rose 57% year-over-year to R$400.1 million in 3Q24, with free cash flow of R$191.6 million.

• Net debt reduced by R$257.5 million year-over-year to R$3,050 million, with leverage at 1.58x, the lowest in 22 quarters.

Financial highlights

• 3Q24 consolidated net revenue: R$1,281.6 million (+0.9% vs 3Q23); 9M24: R$4,261.9 million (+6.9% vs 9M23).

• Recurring EBITDA: R$385.0 million in 3Q24 (+26% vs 3Q23); margin up 6.0p.p. to 30.0%.

• Adjusted net income: R$32.8 million in 3Q24 (vs -R$44.1 million in 3Q23); 9M24: R$133.8 million.

• Operating cash generation after Capex: R$400.1 million in 3Q24 (+57% vs 3Q23).

• Free cash flow in 3Q24 was R$191.6 million; net debt at R$3,050 million; cash position at R$1,126.3 million.

Outlook and guidance

• Confident in achieving 2024 guidance: R$1 billion in OCG after Capex and over R$2.1 billion in recurring EBITDA.

• Expecting higher revenue in 4Q24 from Vasta (2025 cycle) and Saber (NBTP program), with continued focus on operational efficiency, innovation, and customer experience.