Vittia (VITT3) Q3 2024 earnings summary

Executive summary

• Net revenue grew 6.2% year-over-year in 3Q24 to R$309.4 million and 3.5% in 9M24 to R$530.8 million, despite a challenging agricultural environment marked by severe drought and market uncertainty.

• Adjusted EBITDA declined 7.7% year-over-year in 3Q24 and 25.8% in 9M24, mainly due to lower gross profit, margin compression, and higher costs.

• Net income dropped 21.0% in 3Q24 to R$45.8 million and 48.4% in 9M24 to R$28.9 million.

• The company maintained financial solidity, with a net debt/EBITDA ratio of 0.93x and continued investments in R&D, capacity expansion, and innovation.

• Share buybacks and dividend payments were executed, with a new program launched for up to 4.5 million shares.

Financial highlights

• Net revenue: R$309.4 million in 3Q24 (+6.2% YoY), R$530.8 million in 9M24 (+3.5% YoY).

• Adjusted EBITDA: R$83.2 million in 3Q24 (-7.7% YoY), R$71.9 million in 9M24 (-25.8% YoY).

• Net income: R$45.8 million in 3Q24 (-21.0% YoY), R$28.9 million in 9M24 (-48.4% YoY).

• Capex: R$9.1 million in 3Q24 (-19.3% YoY), R$26.6 million in 9M24 (-30.5% YoY).

• Gross margin: 35.6% in 3Q24 (-5.9 p.p. YoY), 32.3% in 9M24 (-4.8 p.p. YoY).

Outlook and guidance

• Management expects resumed growth in biological pesticides in 4Q24 and continued robust performance in foliar fertilizers and micronutrients.

• The company remains committed to closing the year with growth in sales and EBITDA, despite ongoing market volatility.

• Off-season crops are anticipated to perform positively, supported by improved corn prices and favorable climate conditions.

• The company remains cautious about 2025, expecting continued challenges but with less severity than in 2023-2024.