Kepler Weber (KEPL3) Q4 2024 earnings summary

Executive summary

• Net revenues for 2024 increased 6.3% year-over-year to R$1.6 billion, despite a challenging 4Q24 with an 8.4% decline versus 4Q23.

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

• Adjusted net income for 2024 was R$200.9 million (12.5% margin), down 9.7% year-over-year, impacted by new tax legislation.

• Record-breaking results in International Business (+78.8%) and Ports & Terminals (+19.9%) segments, while Agribusiness declined 10.2% and Farms grew 6.8%.

• Strong ESG initiatives and robust governance structure maintained, with major social and environmental projects completed.

Financial highlights

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

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

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

• Dividend and interest on equity payments in 2024 totaled up to R$150 million, with a payout ratio of 72% and yield of 9.1%.

• Net cash at year-end was R$114.4 million, even after significant shareholder payments.

Outlook and guidance

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

• Focus remains on executing the KW2030 strategic plan, market leadership, and value generation through data integration.

• 2025 will emphasize process efficiency, LEAN culture, and new product launches, with a robust second half anticipated.

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

• Participation in over 30 trade shows and launch of three new products planned for 2025.