Kepler Weber (KEPL3) Q2 2024 earnings summary

Executive summary

• Net revenue grew 16.6% YoY in Q2 2024 to R$327.8 million and 17.2% in H1 2024 to R$708.1 million, driven by strategic diversification and strong performance across all segments.

• EBITDA reached R$63.3 million in Q2 (19.3% margin, up 17.7% YoY) and R$153.7 million in H1 (21.7% margin), reflecting operational excellence.

• Net profit totaled R$37.0 million in Q2 (11.3% margin, up 10.9% YoY); H1 net profit was R$89.2 million (12.6% margin).

• Record Net Promoter Score (NPS) of 72, with 79% of customers as promoters, reflecting strong customer service.

• No significant operational or economic impacts from the severe floods in Rio Grande do Sul, with active social support initiatives.

Financial highlights

• Q2 2024 net revenue up 16.6% YoY to R$327.8 million; H1 2024 up 17.2% YoY to R$708.1 million.

• Q2 EBITDA of R$63.3 million (19.3% margin, +17.7% YoY); H1 EBITDA of R$153.7 million (21.7% margin, +17.2% YoY).

• Q2 net profit R$37.0 million (11.3% margin, +10.9% YoY); H1 net profit R$89.2 million (12.6% margin, +5.4% YoY).

• Robust cash position: R$513.4 million gross, R$225.1 million net at June 2024.

• ROIC at 43.5% in Q2, consistent with Q1.

• Dividend payout of R$30 million in July 2024, with a payout ratio of 33.7% for 1H24.

Outlook and guidance

• Positive demand expected across all segments for H2 2024, supported by a strong order book, competitive advantages, and increased government funding for grain storage.

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

• Continued investment in plant expansion, automation, and new product development.