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, and integrated Grupo MOVE3 to expand into document transport and modernize operations with high-capacity sorting technology.

• Homologated extrajudicial/judicial recovery plan covering R$328MM–R$328.7MM in payables, with significant creditor adherence.

• Underwent operational, financial, and fiscal adjustments to restore profitability and liquidity.

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), with full-year pro-forma adjusted EBITDA at R$100.8MM, reversing a negative margin in 2023.

• Net loss of R$578.5MM in 2024, impacted by non-recurring charges, impairments, and restructuring.

• Significant non-recurring charges: R$481MM–R$460.4MM goodwill write-off, R$156MM in new provisions, R$114MM–R$113.7MM in recovery plan liabilities, and R$837.2MM in total non-recurring adjustments.

• R$21MM–R$20.6MM gain from asset sale and R$24MM–R$27.8MM in tax credits positively impacted results.

Outlook and guidance

• Entering 2025 with all loss-making operations closed to focus on positive margins and asset-light logistics.

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

• Ongoing debt renegotiations, focus on liquidity, efficiency, and operational stabilization, and evaluating expansion using excess sorting capacity.

• Potential positive impact in 2025 from successful negotiation of federal tax liabilities.