Schulz (SHUL4) Q2 2024 earnings summary

Executive summary

• Schulz S.A. reported 2Q24 EBITDA growth of 16.1%, with net revenue of R$507.5 million and net income of R$70.5 million, up 12.9% year-over-year. 1H24 net revenue reached R$963.3 million, with net income of R$130.9 million and EBITDA of R$182.2 million. The company maintained strong operational performance despite a high comparison base in 1Q23 due to truck sales anticipation. Return on equity for the last 12 months was 19.8%.

Financial highlights

• 2Q24 net revenue: R$507.5M (+4.4% YoY); 1H24: R$963.3M (-1.4% YoY).

• 2Q24 EBITDA: R$101M (+16.1% YoY, margin 19.9%); 1H24: R$182.2M (-6.1% YoY, margin 18.9%).

• 2Q24 net income: R$70.5M (+12.9% YoY, margin 13.9%); 1H24: R$130.9M (-5.4% YoY, margin 13.6%).

• Gross margin in 2Q24 improved to 27.5% (vs. 25.6% in 2Q23); 1H24 gross margin was 25.8%.

• Operating cash flow in 1H24 was R$199.2M, stable YoY; capex reached R$31.1M in 1H24.

Outlook and guidance

• Management expects a gradual sector recovery in 2024, with the truck segment potentially exceeding initial growth forecasts. The compressor segment will focus on value-added products and expanding sales channels domestically and in North America.

• The acquisition of Janus & Pergher Ltda in July 2024 is expected to generate synergies and expand Schulz's presence in gas generation equipment for hospital and industrial applications.