Ultrapar (UGPA3) Q3 2024 earnings summary

Executive summary

• Net revenues reached R$35.4 billion in 3Q24, up 9% year-over-year and sequentially, driven by Ipiranga and Ultragaz.

• Recurring Adjusted EBITDA was R$1.5 billion, down 24% year-over-year but up 17% sequentially, mainly due to lower Ipiranga margins.

• Net income totaled R$698 million, a 22% decrease year-over-year but a 42% increase from 2Q24, supported by improved financial results.

• Operating cash flow was R$780 million, impacted by lower EBITDA and higher working capital needs.

• Key events included the acquisition of a 51.7% stake in Witzler, receipt of R$222 million from the Extrafarma sale, and new debt issuances.

Financial highlights

• Net revenues: R$35.4 billion in 3Q24 (+9% YoY and QoQ); R$98.1 billion in 9M24 (+6% YoY).

• Recurring Adjusted EBITDA: R$1.5 billion in 3Q24 (-24% YoY, +17% QoQ); R$4.1 billion in 9M24 (+4% YoY).

• Net income: R$698 million in 3Q24 (-22% YoY, +42% QoQ); R$1.6 billion in 9M24 (+17% YoY).

• Investments: R$519 million in 3Q24 (+37% YoY); R$1.4 billion in 9M24 (+27% YoY).

• Operating cash flow: R$780 million in 3Q24 (-59% YoY, -40% QoQ).

Outlook and guidance

• Intention to exercise preemptive rights in Hidrovias' capital increase up to R$1.5 billion.

• Expectation to maintain profitability above R$130 per cubic meter at Ipiranga in 4Q24, with stable margins and improved market conditions.

• Ultragaz anticipates higher EBITDA in 4Q24, driven by new energy initiatives despite seasonally lower volumes.

• Ultracargo expects EBITDA in 4Q24 to be similar to recent quarters.

• Focus on expanding logistics and energy infrastructure, with continued investments in technology and sustainability.