Cogna Educacao S.a. · BMFBOVESPA:COGN3
Cogna Educacao — Q3 2024 Earnings Presentation
25 slides from Cogna Educacao's earnings presentation, Nov 8, 2024
Slide 1: Results 3Q24
Results 3Q24 Nov, 08, 2024
Slide 2: Disclaimer
Disclaimer The material that follows is a presentation of general information about Cogna Educação S.A. (“Cogna”). The information herein is not intended to be extensive, and it should not be considered by potential investors as a recommendation. This presentation is strictly confidential and may no
Slide 3: Message from Management
Message from Management ✓ Cogna’s Net revenue in line with 3Q23: ✓ Kroton’s Net revenue grows +13.3% due to increase in revenue from the intake cycle, better re- enrollment rates, result of higher engagement and quality of the student base; ✓ Achievement of Vasta's ACV guidance, with 12.5% growth in
Slide 4: Kroton
\A kroton*
Slide 5: Operational Performance
Operational Performance Student Intake (thousand) Final Student Base (thousand) Average Ticket Intake Net 12.6% 1.3% Revenue: 0.0p.p. vs 3Q23 Kroton Total +17.7% 1,092.6 233.0 236.1 970.5 37.3 34.2 145.9 22.0 7.0 20.7 6.5 145.9 +9.1% +10.4p.p. vs 3Q23 Kroton Med -8.0% Kroton Med Kroton Med -0.0% 204
Slide 6: Net Revenue
Net Revenue Quarter (R$ million) Accumulated (R$ million) 13.3% 9.8% 939.8 2,934.6 2,672.3 829.4 575.7 195.7 499.9 149.1 +31.3% +15.2% 238.9 808.8 Kroton Med Kroton Med 844.6 242.0 -1.3% -4.2% On-Campus On-Campus 438.3 505.2 1,327.8 1,550.1 +15.3% +16.7% DL DL 3Q23 3Q24 9M23 9M24 Kroton Med On-Campu
Slide 7: Financial Performance
Financial Performance Gross Profit - Quarter (R$ million) Gross Profit – Accumulated (R$ million) Gross Margin 10.7% +1.5p.p. vs 3Q23 Kroton Total 15.4% 2,365.7 746.6 2,136.7 419.5 646.8 140.3 +51.4% 349.2 +20.1% +9.5p.p. vs 3Q23 Kroton Med 92.7 Kroton Med 491.9 Kroton Med 135.6 537.1 141.5 -4.2% -8
Slide 8: Costs and Expenses - Quarter (R$ million)
Costs and Expenses¹ - Quarter (R$ million) 0.3% 612.3 614.4 33,0 % NOR 3Q23 3Q24 36,1 78,6 58,5 Corporate Expenses 4.3% 3.5% -0.8p.p. 219,3 PDA 9.5% 6.2% -3.3p.p. 230,9 Oparating Expenses 27.8% 23.3% -4.5p.p. 110,4 84,0 Selling and Marketing Expenses 10.1% 11.7% +1.6p.p. 182,7 193,2 Direct Costs 2
Slide 9: Recurring EBITDA and Margin EBITDA
Recurring EBITDA and Margin EBITDA Quarter (R$ million) Accumulated (R$ million) 37.3% 35.8% 34.9% 29.4% 17.2% 38.0% 1,094.0 933.8 336.6 243.9 3Q23 3Q24 9M23 9M24 Recurring EBITDA Margin ✓ Significant 38.0% increase in Recurring EBITDA with an expansion of 6.4 p.p. driven by: i. Net revenue growth o
Slide 10: Slide 10
Slide 11: Net Revenue
Net Revenue Quarter (R$ million) Cycle (R$ million) 6.4% 1,529.4 1,437.2 -15.0% 69.0 -14.6% 81.2 102,5 257.9 148,8 -31.1% n.a 40,7 220.2 22,3 -35.8% 14.3 +12.5% 1.357,9 1.207,2 +5.6% 194,9 205,9 3Q23 3Q24 Cycle 2023 Cycle 2024 B2G No - Subscription Subscription ✓ Achievement of 100.6 % of the ACV gu
Slide 12: Costs and Expenses
Costs and Expenses ¹ Cycle Accumulated (R$ million) 3.6% 1,048.5 1,085.9 % NOR Cycle 23 Cycle 24 46.0 59,6 55.5 60,2 Corporate Expenses 3.2% 3.9% +0.7p.p. 154,8 130,5 PDA 3.9% 3.9% - 229,2 277,6 Operating Expenses 10.8% 8.5% -2.3p.p. 563,1 557,9 Selling and Marketing Expenses 15.9% 18.2% +2.3p.p.
Slide 13: Recurring EBITDA and EBITDA Margin
Recurring EBITDA and EBITDA Margin Quarter (R$ million) Cycle (R$ million) 28.4% 26.5% 10.0% 8.4% 14.2% 435.0 380.8 -28.8% 25.8 18.4 3Q23 3Q24 Cycle 2023 Cycle 2024 Recurring EBITDA Margin ✓ Gains in operational efficiency in the cycle, with a reduction in paper and printing costs and a better subsc
Slide 14: Saber
SABER’:
Slide 15: Net Revenue
Net Revenue Quarter (R$ million) Accumulated (R$ million) -28.6% -1.5% 186.6 405.8 399.6 133.2 3Q23 3Q24 9M23 9M24 ✓ Reduction in Net Revenue for the quarter due to: i. Reduction in net revenue from NBTP: (a) Commercial calendar does not include purchases; and (b) delay in NBTP repurchases. ii. Sale
Slide 16: Recurring EBITDA and EBITDA Margin
Recurring EBITDA and EBITDA Margin Quarter (R$ million) Accumulated (R$ million) 22.5% 16.8% 16.9% 19.3% -0.8% 68.0 67.5 -16.9% 36.1 30.0 3Q23 3Q24 9M23 9M24 Recurring EBITDA Margin ✓ Reduction in recurring EBITDA for the quarter due to a year of ✓ In the accumulated, EBITDA was in line with the pre
Slide 17: Cogna Educação
EDUCACAO
Slide 18: Net Revenue
Net Revenue Quarter (R$ million) Accumulated (R$ million) 0.9% 6.9% 1,270.0 1,281.6 4,261.9 3,986.6 3Q23 3Q24 9M23 9M24 ✓ In 3Q24, Cogna's Consolidated Net Revenue grew 0.9%, in line with the previous quarter, mainly driven by Kroton's performance; ✓ Year-to-date, Net Revenue reached R$4.2 billions,
Slide 19: Recurring EBITDA and EBITDA Margin
Recurring EBITDA and EBITDA Margin Quarter (R$ million) Accumulated (R$ million) 32.0% 29.7% 24.1% 30.0% 15.0% 1,362.1 1,184.2 25.9% 385.0 305.8 3Q23 3Q24 9M23 9M24 Recurring EBITDA Margin ✓ Double-digit growth in both the quarter and year-to-date, demonstrating the Company's commitment to value cre
Slide 20: Adjusted Net Profit
Adjusted Net Profit Quarter (R$ million) Accumulated (R$ million) 3.1% 2.1% 2.6% -3.5% 58.1% 174.5% 133.8 32.8 84.6 -44.1 3Q23 3Q24 9M23 9M24 Adjusted Net Margin ✓ Adjusted Net Income reached R$32.8 million in the quarter, driven by: ✓ An 21.8% increase in Operating Result; ✓ A reduction in Non-Recu
Slide 21: Operating Cash Generation (OCG)
Operating Cash Generation (OCG) Quarter (R$ million) Accumulated (R$ million) 103.9% 55.1% 51.9% 83.3% 8.4% 57.0% 707.2 400.1 652.7 254.8 3Q23 3Q24 9M23 9M24 Conversion of Recurring EBITDA into OCG ✓ In 3Q24, OCG reached R$400 million, representing an 57.0% increase compared to 3Q23, driven by: (i)
Slide 22: Leverage and Indebtedness
Leverage and Indebtedness 3.00x 1.88x ✓ At the end of 3Q24, the leverage ratio reached 1.58x, the lowest 1.83x 1.79x 1.79x level in 22 quarters since 4Q18; 1.58x ✓ In 3Q24, the company advanced its liability management operations, finalizing the 13th debenture issuance for an amount of R$ 200.0 mill
Slide 23: Cash Position and Indebtedness
Cash Position and Indebtedness Breakdown of Net Debt (R$ million) 4,066 4,176 ✓ The Company's Net Debt decreased by R$257.5 million or 110 1,126 7.8% in 3Q24 compared to the previous year, driven by cash 3,050 generation during the period, which was used to prepay debentures in 2Q24; ✓ At the end of
Slide 24: We continue in 2024 focused on our Strategic Pillars
We continue in 2024 focused on our Strategic Pillars... Growth Increasing intake cycles of freshmen and improvement in veteran dropout rates at Kroton, expansion in Subscription and B2G at Vasta, and positive seasonality of NBTP in 2H24 at Saber. Improvement in student and customer experience, with
Slide 25: Results 3Q24
Results 3Q24 Nov, 08, 2024