Ultrapar (UGPA3) Q3 2024 earnings summary

Executive summary

• Recurring EBITDA decreased 24% year-over-year to R$1.5 billion, mainly due to lower results at Ipiranga, but showed sequential improvement.

• Net income fell 22% year-over-year to R$698 million for 3Q24, impacted by lower EBITDA and higher working capital investment, but increased 42% from 2Q24.

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

• Cash flow from operating activities for the nine-month period rose 17% year-over-year, but 3Q24 operating cash flow was R$780 million, down 59% year-over-year.

• Investments in the quarter totaled R$519 million, focused on network expansion, logistics, and technology.

Financial highlights

• Net income for 3Q24 was R$698 million, down from R$891 million in 3Q23.

• Recurring Adjusted EBITDA for 3Q24 was R$1.5 billion, a 24% decrease from 3Q23 but up 17% from 2Q24.

• Net revenues for 3Q24 were R$35.4 billion, up 9% year-over-year.

• CAPEX increased 4% year-over-year to R$4,093 million for the nine-month period.

• Earnings per share for the nine months were R$1.38, compared to R$1.22 in the prior year.

Outlook and guidance

• Management notes ongoing risks and uncertainties, with forward-looking statements subject to change.

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

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

• Management continues to focus on expanding in sectors exposed to Brazilian agribusiness and energy solutions, with recent acquisitions supporting long-term growth.