Kepler Weber (KEPL3) Q2 2024 earnings summary

Executive summary

• Net revenue grew 16.6% year-over-year in 2Q24 to R$327.8 million and 17.2% in 1H24 to R$708.1 million, with robust profitability and strategic diversification under challenging conditions.

• EBITDA reached R$63.3 million in 2Q24 (19.3% margin), up 17.7% year-over-year; 1H24 EBITDA was R$153.7 million (21.7% margin), up 17.2%.

• Net income for 2Q24 was R$37.0 million (11.3% margin), up 10.9% year-over-year; 1H24 net income reached R$89.2 million (12.6% margin), a 5.4% increase over 1H23.

• Strong segment performance: Farms (+25.3% YoY in 2Q24), Agribusiness (+15.3%), International (+24.1%), Ports & Terminals (+34%), while Replacement & Services declined 4.7% in 2Q24 but grew 2.9% in 1H24.

• No significant operational impact from major floods in Rio Grande do Sul; company actively supported affected communities.

Financial highlights

• 2Q24 net revenues: R$327.8 million (+16.6% YoY); 1H24: R$708.1 million (+17.2% YoY).

• 2Q24 EBITDA: R$63.3 million (+17.7% YoY), margin 19.3%; 1H24 EBITDA: R$153.7 million (+17.2% YoY), margin 21.7%.

• 2Q24 net income: R$37.0 million (+10.9% YoY), margin 11.3%; 1H24 net income: R$89.2 million (+5.4% YoY), margin 12.6%.

• ROIC: 43.5% in 2Q24, up 0.5 p.p. sequentially.

• Cash and equivalents: R$513.4 million at 2Q24 end; net cash: R$225.1 million.

Outlook and guidance

• Positive demand expected across all segments for the remainder of 2024, supporting high activity levels into 2025.

• Anticipates continued growth in ports and terminals, leveraging Brazil's expanding export infrastructure.

• Focus on operational improvements, innovation, and alignment with strategic plan for sustainable growth.

• Plano Safra 2024/2025 increases funding for grain storage infrastructure, supporting future demand.