Kepler Weber (KEPL3) Q3 2024 earnings summary

Executive summary

• Net revenues in Q3 2024 rose 8.2% year-over-year to R$439.1 million, with year-to-date growth of 13.6% to R$1,147.2 million and adjusted EBITDA margin reaching a record 22.2%.

• Adjusted EBITDA for Q3 2024 was R$97.6 million, up 21% year-over-year, and adjusted net profit was R$61.2 million, with a 13.9% margin.

• International Business and Ports & Terminals segments posted strong growth, up 63.6% and 442% year-over-year in Q3 2024.

• Net cash remained robust at R$162.9 million after R$45.5 million in shareholder payments during the quarter.

• The company remains resilient despite a challenging agribusiness environment, with growth across all business segments.

Financial highlights

• 3Q24 net revenues reached R$439.1 million (+8.2% YoY); 9M24 net revenues totaled R$1,147.2 million (+13.6% YoY).

• Adjusted EBITDA for 3Q24 was R$97.6 million (+21.0% YoY), with a 22.2% margin (+2.3 p.p. YoY); 9M24 adjusted EBITDA was R$252.5 million (+20.9% YoY), margin 22.0%.

• Adjusted net income for 3Q24 was R$61.2 million (-0.5% YoY), margin 13.9% (-1.2 p.p. YoY); 9M24 adjusted net income was R$148.8 million (+6.0% YoY), margin 13.0%.

• Gross cash at quarter-end was R$457.9 million; net cash was R$162.9 million.

• Dividend and interest on equity payments in Q3 2024 totaled R$45.5 million.

Outlook and guidance

• 2024 is expected to be one of the best years in company history, with strong prospects for 2025.

• Positive demand expected in agribusiness, ports, terminals, and services segments to sustain activity levels.

• Management expects robust results for the remainder of 2024, supported by a strong order portfolio and competitive advantages.

• Anticipates continued prioritization of storage solutions due to Brazil's logistics deficit and large crop expectations.

• Strategy aims for balanced growth, with operational improvements supporting profitability.