Metalúrgica Riosulense (RSUL4) Q2 2024 earnings summary

Executive summary

• Net revenue for the first half of 2024 reached R$187.8 million, up 10.37% year-over-year, driven by an 11.87% increase in domestic sales, while exports declined 1.17%.

• Consolidated net income for the period was R$28.7 million, representing 15.3% of net revenue, slightly above the R$27.1 million (15.9% margin) in the same period of 2023.

• EBITDA totaled R$45.8 million, a decrease of 3.55% compared to the same period last year, with EBITDA margin at 24.4%.

• Operational performance was supported by higher domestic demand, but pressured by increased costs and operational expenses.

Financial highlights

• Gross profit for the first half was R$78.1 million, up from R$73.2 million year-over-year.

• Cost of goods sold rose to R$109.7 million (58.41% of net revenue), compared to R$97.0 million (56.94%) in 2023.

• Operating expenses increased to R$35.5 million (18.88% of net revenue), up from R$28.9 million (17.0%) in 2023.

• Net financial result improved to R$375 thousand, reversing a negative R$3.5 million in the prior year, mainly due to higher financial income and lower penalties on tax installments.

• Investments reached R$17.4 million, focused on plant modernization, environmental certification, and new equipment.

Outlook and guidance

• Management highlights ongoing efforts to optimize debt structure and maintain operational efficiency.

• The company continues to invest in modernization and compliance with environmental standards.