Vibra Energia (VBBR3) Q4 2023 earnings summary

Executive summary

• FY23 adjusted EBITDA was R$6.259bn excluding the R$2.591bn extraordinary tax recovery; including it, adjusted EBITDA was R$8.85bn. Net income reached R$4.766bn, up 210% YoY.

• 4Q23 adjusted EBITDA rose 54.5% YoY to R$2.328bn despite sales volume declining 8.7% to 9.173m m³.

• Operational changes focused on profitability, pricing, logistics and inventory; inventory improvements released R$0.8bn in working capital, and the transformation program delivered R$500m in 2023.

Financial highlights

• FY23 revenue was R$162.947bn versus R$181.446bn in FY22; gross profit rose to R$8.361bn from R$7.489bn.

• Q4 net income was R$3.297bn versus R$566m in Q4 2022; FY23 net income was R$4.766bn versus R$1.537bn in FY22.

• Q4 operating cash flow was R$1.333bn; FY23 operating cash flow was R$6.247bn, supporting a R$4.2bn reduction in net debt YoY.

• 4Q23 adjusted EBITDA margin was R$254/m³, up 69.2% YoY; FY23 margin was R$169/m³ excluding the SL 192/2022 tax recovery.

Outlook and guidance

• Management expects lost market share to return gradually as competitiveness in domestic and imported diesel improves, while aiming to regain fair share without sacrificing profitability.

• 2024 priorities include operational improvements in supply trading, lubricants and BR Mania, alongside growth in renewable energy and energy-transition activities.

• Comerc expected to add 77 MWp of distributed-generation capacity in 2024; Várzea plant COD was expected in 3Q24.