Kepler Weber (KEPL3) Q4 2024 earnings summary

Executive summary

• Net revenues for 2024 reached R$1.6 billion, up 6.3% year-over-year, despite a challenging 4Q24 with an 8.4% decline versus 4Q23; adjusted EBITDA was R$334.8 million (margin 20.8%), up 3.6%, and adjusted net income was R$200.9 million (margin 12.5%), down 9.7% due to higher taxes and macroeconomic headwinds.

• International Business segment revenues grew 78.8% year-over-year, Ports & Terminals rose 19.9%, and Replacement & Services increased 4.2%; Farms grew 6.8% while Agribusiness declined 10.2%.

• The company maintained strong operational performance and resilience, overcoming macroeconomic headwinds, high interest rates, and input costs, with innovation initiatives such as KW Store and new product launches.

• Net cash at year-end was R$114.4 million after significant dividend and interest on equity payments totaling up to R$148.7 million.

• Strong ESG initiatives and sectoral awards were achieved, including major social and environmental projects.

Financial highlights

• 4Q24 net revenues: R$460.1 million, down 8.4% year-over-year; 2024 net revenues: R$1.6 billion, up 6.3%.

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

• 4Q24 adjusted net income: R$52.0 million (margin 11.3%), down 36.6% year-over-year; 2024 adjusted net income: R$200.9 million (margin 12.5%), down 9.7%.

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

• Cash and equivalents at year-end: R$421.5 million; total debt: R$307.1 million, mainly due to IFC financing.

Outlook and guidance

• 2025 is expected to benefit from a record harvest, especially with a 15% increase in soybean and 20% in corn prices, supporting higher farmer incomes and a robust second half.

• Focus remains on executing the KW2030 strategic plan, process efficiency, lean operations, and new product launches, with participation in over 30 trade shows and events planned.

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