Companhia Melhoramentos de São Paulo (MSPA3) Q3 2024 earnings summary

Executive summary

• 3Q24 consolidated net revenue was R$41.0m, up 1% YoY; adjusted net revenue was R$42.4m, down 19% YoY, mainly due to prior-year one-off standing timber sales.

• 3Q24 net loss was R$8.1m versus net income of R$8.8m in 3Q23; adjusted EBITDA was R$0.8m versus R$19.6m.

• Operating trends improved in forestry and publishing, while real estate revenue eased after a prior-quarter non-core land sale.

Financial highlights

• 9M24 consolidated net revenue totaled R$118.4m, down 15% YoY; adjusted net revenue was R$133.7m, down 13% YoY.

• 9M24 net loss was R$14.2m versus net income of R$7.6m in 9M23; reported EBITDA fell 62% to R$18.9m.

• 3Q24 EBITDA was R$4.6m, down 76% YoY; adjusted EBITDA was R$0.8m, down 96% YoY, excluding non-cash accounting movements.

• 3Q24 financial expense was R$6.5m versus R$3.5m in 3Q23; 9M24 net financial expense was R$12.7m, broadly stable YoY.

Outlook and guidance

• New sustainable packaging unit remained on schedule to begin operations in early 2025.

• Forestry sales volumes showed recovery, with production levels beginning to approach prior levels; operational efficiency initiatives continued.

• Publishing restructuring focused on simplifying products and processes, adjusting the portfolio and inventory, and improving readiness to develop new products.