Santos Brasil Participações (STBP3) Q3 2024 earnings summary

Executive summary

• Net revenue rose 43.2% year-over-year to R$764.3 million in 3Q24, with EBITDA up 57.7% to R$406.5 million and net income up 55.5% to R$216.2 million, driven by strong container terminal performance and higher import/export volumes.

• Container throughput increased 25.1% YoY, led by Tecon Santos (+24.3%) and Tecon Imbituba (+88.0%), with record quarterly volumes and robust vehicle handling.

• Major events included a R$2 billion debenture issuance, inclusion in the Bovespa Index, and the announced sale of 48% of capital to CMA CGM, pending regulatory approval.

• Continued focus on ESG initiatives, earning multiple industry awards and supporting community and environmental projects.

Financial highlights

• Gross revenue grew 43.3% YoY to R$863.7 million; net revenue up 43.2% YoY to R$764.3 million.

• EBITDA increased 57.7% YoY to R$406.5 million; recurring EBITDA margin rose to 53.2% (+4.9 p.p.).

• Net income was R$216.2 million (+55.5% YoY), with net margin at 28.3% (+2.2 p.p.).

• Net debt stood at R$130.7 million, with leverage at 0.10x net debt/EBITDA LTM.

• R$467.1 million in dividends and interest on equity announced for 9M24.

Outlook and guidance

• Management expects continued growth in container throughput, supported by new long-haul services and strong import/export demand.

• Ongoing investments in terminal expansion and modernization, with R$157.9 million capex in 3Q24, focus on Tecon Santos and liquid bulk terminals.

• No formal guidance for 2024 due to global uncertainties, but no major negative impacts expected compared to 2023.

• Pending completion of CMA CGM transaction, with regulatory approval expected in 1Q25, followed by a public tender offer.