Kepler Weber (KEPL3) Q4 2024 earnings summary

Executive summary

• Net revenue reached R$1.6 billion in 2024, up 6.3% year-over-year, despite macroeconomic headwinds, natural disasters, and a challenging fourth quarter with an 8.4% decline versus 4Q23.

• Adjusted EBITDA for 2024 was R$334.8 million (margin 20.8%), up 3.6% year-over-year, but 4Q24 saw a 28.1% drop versus 4Q23.

• Adjusted net income for 2024 was R$200.9 million (margin 12.5%), down 9.7% year-over-year, mainly due to new tax legislation (Law 14.789/23).

• International Business and Ports & Terminals segments posted record annual revenues, with International up 78.8% and Ports & Terminals up 19.9%.

• Innovation initiatives, including new product launches (BioCab/Biocav, Seletron line) and the KW Store online platform, contributed to revenue and customer engagement.

Financial highlights

• 2024 net revenues: R$1,607.3 million, up 6.3%; 4Q24 net revenues: R$460.1 million, down 8.4% year-over-year.

• 2024 adjusted EBITDA: R$334.8 million (margin 20.8%), up 3.6%; 4Q24 adjusted EBITDA: R$82.3 million (margin 17.9%), down 28.1%.

• 2024 adjusted net income: R$200.9 million (margin 12.5%), down 9.7%; 4Q24 adjusted net income: R$52.0 million, down 36.6%.

• Dividend payout for 2024: R$143.8 million, payout ratio 72.2%, dividend yield 9.1%.

• Net cash at year-end: R$114.4 million, after significant dividend and interest on equity payments.

Outlook and guidance

• 2025 is expected to benefit from a record harvest, with a robust second half and continued focus on process efficiency, innovation, and the KW 2030 strategic plan.

• Dividend yield is expected to remain between 8% and 10% in 2025, maintaining industry-leading payout levels.

• Three new product launches and increased participation in industry events are planned for 2025.