Schulz (SHUL4) Q4 2024 earnings summary

Executive summary

• Revenue grew 1.0% year-over-year to R$1.95 billion, driven by a 7.1% increase in domestic sales, while international markets faced headwinds from inflation and lower demand in the US and Europe.

• Net income reached R$255.2 million, down 8.2% from 2023, with a net margin of 13.1%.

• EBITDA totaled R$359.4 million, a 2.2% decrease year-over-year, with an EBITDA margin of 18.5%.

• Major investments of R$229.6 million (up 155%) were made in acquisitions, capacity expansion, and innovation, including the purchase of UPI Fundição de Ferro, Janus & Pergher, and a stake in the Janaúba Solar Complex.

• The company maintained a positive net cash position of R$59.2 million despite heavy investments and increased dividends.

Financial highlights

• Gross profit was R$502.2 million, with a gross margin of 25.8%, stable year-over-year.

• Operating profit was R$290.3 million (margin 14.9%), down 4.6% from 2023.

• Net financial result was a R$3.2 million expense, reversing a R$1.5 million gain in 2023.

• Total assets increased 9.3% to R$2.6 billion; equity rose 9.7% to R$1.42 billion.

• Dividend and interest on equity distributions doubled to R$163.1 million.

Outlook and guidance

• The company plans R$230 million in investments for 2025, focusing on expansion, product development, and working capital.

• Management expects continued growth in the domestic market, with cautious optimism for recovery in construction and agricultural machinery segments.

• The Janaúba solar project is expected to fully supply renewable energy needs and reduce CO2 emissions by over 32,000 tons annually.