Kepler Weber (KEPL3) Q3 2024 earnings summary

Executive summary

• Net revenues in 3Q24 rose 8.2% year-over-year to R$439.1 million; 9M24 up 13.6% to R$1,147.2 million, with adjusted EBITDA margin reaching a record 22.2%.

• Adjusted EBITDA for 3Q24 was R$97.6 million (+21.0% YoY), with a margin of 22.2%.

• Adjusted net income for 3Q24 was R$61.2 million, with a margin of 13.9%.

• All business segments grew revenue year-over-year, with International Business up 63.6% and Ports & Terminals up 442.0% in 3Q24, despite agribusiness challenges.

• Cash and investments at quarter-end totaled R$457.9 million, with net cash at R$162.9 million after R$45.5 million in shareholder payments.

Financial highlights

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

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

• Adjusted net income: R$61.2 million in 3Q24 (margin 13.9%, -1.2 p.p. YoY); 9M24: R$148.8 million (margin 13.0%).

• ROIC at 42.1% in 3Q24.

• Gross profit in 3Q24 was R$131.1 million (+16.1% YoY); operating cash flow in 9M24 was R$188.9 million.

Outlook and guidance

• Management expects robust results for FY2024, supported by a strong order backlog and competitive advantages.

• Demand remains positive for projects in agribusiness, ports, terminals, and services, with strong prospects for 2025.

• Ongoing focus on operational excellence, innovation, and sustainable growth despite sector challenges.

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