Kepler Weber (KEPL3) Q3 2024 earnings summary

Executive summary

• Net revenue reached R$439.1 million in 3Q24, up 8.2% year-over-year, and R$1,147.2 million in 9M24, up 13.6%, with adjusted EBITDA margin at a record 22.2% and adjusted net profit of R$61.2 million in 3Q24.

• International Business and Ports & Terminals segments posted strong growth in 3Q24, up 63.6% and 442% year-over-year, respectively.

• The company maintained a robust net cash position of R$162.9 million after dividend payments, supporting capex, R&D, and shareholder returns.

• All business segments expanded in 9M24, demonstrating resilience despite agribusiness challenges.

• 15 new contracts were signed in Q3, totaling over R$195 million in new sales, with deliveries scheduled through 2025.

Financial highlights

• 3Q24 net revenues were R$439.1 million (+8.2% vs 3Q23); 9M24 net revenues totaled R$1,147.2 million (+13.6% vs 9M23).

• Adjusted EBITDA for 3Q24 was R$97.6 million (+21% vs 3Q23), with a 22.2% margin (+2.3 p.p.); 9M24 adjusted EBITDA was R$252.5 million (+20.9% vs 9M23), margin 22.0%.

• Adjusted net income for 3Q24 was R$61.2 million (margin 13.9%); 9M24 adjusted net income was R$148.8 million (margin 13.0%).

• Gross margin in 3Q24 was 29.9%, up from 27.8% in 3Q23; cost of goods sold was 70.1% of net revenue.

• Net cash at quarter-end was R$162.9 million; gross cash was R$457.9 million.

Outlook and guidance

• Management expects 2024 to be one of the best years, with strong prospects for 2025, supported by a robust order backlog and competitive advantages.

• Positive demand is expected in agribusiness, ports, terminals, and services, with storage solutions prioritized due to Brazil's logistics deficit and large crop expectations.

• The company remains confident in sustainable long-term growth, focusing on innovation, operational excellence, and market expansion.