Sequoia Logística e Transportes (SEQL3) Q4 2024 earnings summary

Executive summary

• Completed major financial restructuring in 2024, including debt conversion, asset sales, and workforce reduction, with integration of Grupo MOVE3 and ramp-up of new logistics technology.

• Homologated extrajudicial recovery plan in March 2025, covering R$328.7MM in payables, with significant creditor adherence.

• Significant losses and liquidity challenges persist, with audit opinion abstained due to material uncertainties about going concern.

Financial highlights

• Net revenue reached R$194.6MM in 4Q24, up 55.6% year-over-year; full-year pro-forma revenue R$930.7MM, up 25%.

• Adjusted EBITDA was R$88.8MM in 4Q24 (45.6% margin), reversing a negative margin in 4Q23; 2024 pro-forma adjusted EBITDA was R$100.8MM.

• Net loss of R$578.5MM in 4Q24 and R$1.28 billion for 2024, impacted by non-recurring charges and impairments.

• Significant non-recurring charges: R$481MM goodwill write-off, R$156MM in new provisions, R$114MM in recovery plan liabilities, and R$837.2MM in total non-recurring adjustments.

• R$21MM gain from asset sale, R$24MM in tax credits, and R$27.3MM from Frenet sale positively impacted results.

Outlook and guidance

• Entering 2025 with all loss-making operations closed, focusing on asset-light logistics, positive margins, and operational stabilization.

• Six business units prioritized, including B2C, B2B, and dedicated logistics, with horizontal management and zero-based budgeting.

• Ongoing debt renegotiations, cost reductions, and focus on liquidity and efficiency.

• Evaluating expansion of service offerings using excess sorting capacity.