PBG (PTBL3) Q3 2024 earnings summary

Executive summary

• Net revenue reached R$662 million in 3Q24, up 10.6% year-over-year, with all business units expanding and international markets representing 22.8% of total revenue.

• EBITDA increased 8.9% to R$103 million (15.6% margin), reflecting higher business volume and cost optimization.

• Net income was R$2.6 million, impacted by higher financial and depreciation expenses.

• Working capital improved, with a 12-day reduction in the cash conversion cycle and a 21.9% decrease to R$215 million.

• CapEx investments totaled R$26.6 million, focused on retail expansion, plant maintenance, and internationalization.

Financial highlights

• Gross profit increased 5.2% to over R$250 million, with a gross margin of 38.3%, down 2 p.p. year-over-year but improving sequentially.

• Net debt stood at R$973–978 million, with net leverage at 2.9x EBITDA, improving from 3.1x in 3Q23.

• Average cost of debt reduced by 1.8 p.p. to 12.2% p.a., and average maturity extended to 5.4 years.

• Operating expenses were efficiently managed, with a reduction in the cash conversion cycle and operating expenses at 9% of gross revenues.

• Share price closed at R$4.60, with a market cap of R$648.5 million and free float of 35.2%.

Outlook and guidance

• Management expects continued profitability and growth, focusing on operational efficiency, cost discipline, and international expansion, especially in the US.

• Strategic projects in integrated retail and internationalization remain priorities, with CapEx for 2025 expected to be maintained and a second furnace planned for 2026.

• Targeting sequential reduction in leverage through liability management and financial solutions.