Schulz (SHUL4) Q3 2024 earnings summary

Executive summary

• Gross revenue reached R$1.8 billion and EBITDA R$283 million in the first nine months of 2024, with net cash of R$210 million, reflecting a 37.3% increase over December 2023.

• Net income for 3Q24 was R$77.8 million, up 1.9% year-over-year, with a net margin of 14.8%.

• EBITDA for 3Q24 was R$100.6 million, up 6.9% year-over-year, with a margin of 19.1%.

• ROE for the last 12 months reached 19.4%, and shareholder remuneration totaled R$128.8 million, up 122.5% from the prior year.

• The company maintained operational growth despite a challenging market, especially in the automotive segment.

Financial highlights

• 3Q24 net revenue was R$526.9 million, up 6% year-over-year; gross profit was R$140.1 million, up 16.8%.

• 3Q24 gross margin was 26.6% (vs. 24.1% in 3Q23); net margin was 14.8% (vs. 15.4%).

• 9M24 net revenue was R$1.49 billion, up 1.1% year-over-year; net income was R$208.7 million, down 2.8%.

• 9M24 EBITDA was R$282.8 million, margin 19% (vs. 19.5% in 9M23).

• Net cash position improved to R$209.6 million, with a reduction in gross debt by 5.5% since December 2023.

Outlook and guidance

• Management expects continued focus on innovation, diversification, and expansion in compressors and automotive segments.

• The company anticipates gradual recovery in the automotive market and sustained growth in compressors, with optimism for 4Q24 and 2025.

• Strategic investments and acquisitions, such as Janus & Pergher, are expected to drive future growth.