Ultrapar (UGPA3) Q2 2024 earnings summary

Executive summary

• Recurring EBITDA reached R$1.28 billion in Q2 2024, up 37% year-over-year, mainly driven by Ipiranga's performance and margin normalization.

• Net income for Q2 2024 was R$491 million, a 106% increase year-over-year, supported by EBITDA growth and lower net financial expenses.

• Net revenue for H1 2024 reached R$62.74 billion, up from R$60.14 billion year-over-year, with gross profit rising to R$4.17 billion.

• Interim dividends of R$276 million were approved for H1 2024.

• Cash flow from operations in Q2 2024 was R$1.3 billion, up 44% year-over-year.

Financial highlights

• Accumulated EBITDA for 2024 stands at R$2.588 billion, 32% higher year-over-year.

• Investments totaled R$479 million in Q2 2024, up 24% year-over-year, mainly due to Ultracargo.

• Net debt at the end of Q2 2024 was R$7.7 billion, down from March 2024, with leverage at 1.2x net debt/EBITDA.

• Earnings per share (basic) for H1 2024 was R$0.7895, up from R$0.4346 in H1 2023.

• Cash and cash equivalents at June 30, 2024, stood at R$3.83 billion.

Capital allocation and financing

• Net debt figures do not yet include R$222 million from the Extrafarma sale, received in August.

• Acquisition of a significant stake in Hidrovias for R$1.3 billion, now classified as an investment.

• R$1.8 billion in investments and acquisitions in Q2 2024.

• Ultragaz issued R$700 million in debentures in July 2024.

• Dividend distribution of R$276 million for H1 2024.