K E E P L I F E
I N M O T I O N
EARNINGS
RELEASE
3Q24
K E E P L I F E I N M O T I O N
Caxias do Sul, November 06, 2024. Frasle Mobility (Fras-le S.A. - B3: FRAS3) discloses its results for the third quarter of 2024 (3Q24) and nine month period of 2024 (9M24). The Company`s Financial Information is consolidated in accordance with international standards IFRS - International Financial Reporting Standards and monetary vales are expressed in Reais, unless otherwise indicated. Comparisons are made with the third quarter of 2023 (3Q23) and nine month period of 2023 (9M23).
H I G H L I G H T S
NET REVENUE (R$)
2.9 B
+8.0% vs. 9M23 GUIDANCE R$ 3.7 - 4.0 B
INTERNATIONAL MARKET1 (US$)
214.3 M
+2.5% vs. 9M23
GUIDANCE US$ 250 - 290 M
ADJUSTED EBITDA (R$)
512.0 M
-9.7% vs. 9M23
ADJUSTED EBITDA MARGIN 17.9% - 9M24
GUIDANCE 17 - 21 %
INVESTMENTS2 (R$)
85.9 M
+16.0% vs. 9M23
GUIDANCE R$ 130 - 170 M
MARKET CAP (09/30/2024) R$ 5.5 B
CLOSING QUOTE "FRAS3" R$ 20.28
FREE FLOAT 33.2%
Videoconference of Results 3Q24
November, 07, 2024 (Thursday)
11 am Brasília
09 am New York
02 pm London
WEBCAST (Portuguese/English): Click here
Hemerson Fernando de Souza - IRO
Jéssica Cristina Cantele
Mônica Rech
Renata Schwaizer
Investor Relations ri.fraslemobility.com ri@fraslemobility.com
FORWARD-LOOKINGSTATEMENTS. The statements contained in this report regarding FRASLE MOBILITY's (FRAS-LE S.A.) business prospects, projections and results and the company's growth potential are merely forecasts and were based on management's expectations regarding the Company's future. These expectations are highly dependent on changes in the market, the general economic performance of the country, the sector, and international markets, and may undergo changes.
- Value referring to the sum of exports out of Brazil and revenues from operations abroad, net of intercompany operations;
- Value referring to organic investments.
EARNINGS RELEASE 3Q24
FRASLE MOBILITY UNIVERSE
R E C Y C L E M A X
The circular economy program, known as Descarte Seguro (Safe Disposal) has a new identity and is now called Recycle Max. The program was designed in the Fremax unit and promotes the reuse of brake discs and drums, which are collected from partner mechanic workshops and sent back to the factory.
In 2023, 343,800 parts were recycled through this initiative, representing around 2,400 tons of virgin raw material no longer used in the production process. With the new identity, the program is already consolidated in the States of Rio Grande do Sul, Paraná, and Santa Catarina, and will be expanded to workshops in the States of Espírito Santo, Minas Gerais, São Paulo, and Rio de Janeiro. Find out more about the project.
E S G A M B I T I O N
Held in August, the event approached the 2023 FY and 1H24. Frasle Mobility and Randoncorp presented the main progress related to people, the environment, and governance, and brought updates on the goals defined for each public sustainability commitment defined in 2021. Watch the recording of the event by clicking here.
5 t h D E B E N T U R E I S S U A N C E
Through a Material Fact, published on September 4, the Company informed the market of the 5th issuance of simple debentures, not convertible into shares, on an unsecured basis, with a maturity of 7 years in the amount of R$ 750 million.
In July, the research, development, and innovation center celebrated 50 years. Located at our headquarters in Caxias do Sul (RS), the center has a new identity and is now called Movetech.
With five decades of existence, Movetech consolidates as the largest advanced engineering center for friction materials in the Southern Hemisphere that offers complete solutions for the mobility market.
The advanced technology center currently has 160 highly specialized professionals who work in Brazil and abroad designing new products, using advanced tools for component creation, tests, and simulations within an integrated structure that includes three laboratories. Find out more about Movetech.
S I N D I R E P A - S P
A W A R D
For the eighth consecutive year, Fremax was awarded the gold prize as the best brake disk brand in the "Best of the Year" category by Sindirepa-SP (Sindicato da Indústria de Reparação de Veículos e Acessórios do Estado de São Paulo). Furthermore, Jurid and Fras-le were awarded silver in the brake pad category.
EARNINGS RELEASE 3Q24
MESSAGE FROM MANAGEMENT
The third quarter of 2024 was marked by a historic achievement: for the first time, the Company reached revenues exceeding R$ 1 billion in a quarter, and this is something that deserves to be celebrated. We would like to express our special thanks to the more than 5,900 employees who have made this result possible.
In this quarter our operations in Rio Grande do Sul were resumed, now without the influence of the floods which significantly impacted our unit located in São Leopoldo, the Controil site.
Frasle Mobility followed its path of resilience in a favorable competitive environment, with the market showing signs of stability and opportunities of growth, but also facing challenges of global logistical instability that impacted our business due to shortages in supply and difficulties to export goods.
The aftermarket remained buoyant, driven by strong demand for our friction products and suspension/steering components. Our operations in Brazil and Latin America also benefited from a
more stable scenario, despite macroeconomic challenges.
Throughout this year, our strategy of portfolio expansion and strenghening has proven to be successful, with significant gains in market share both in Brazil and abroad. Our focus continued to be on our Operations, taking advantage of the synergies from recent acquisitions. One example was the launch of new products and brands for the
European market at Automechanika, in Frankfurt. We also await approval from the competent authorities to complete the acquisition of KUO Refacciones, announced last quarter, which will mark another important milestone for the company, strengthening our presence in strategic markets, such as Mexico and the United States.
We are confident that our business model, combined with the expertise of our teams around the world, will
continue to support our sustainable growth and reinforce our leadership in the mobility sector.
EARNINGS RELEASE 3Q24 | 1 |
MAIN FIGURES
3Q24 | 3Q23 | Δ % | 2Q24 | Δ % | 9M24 | 9M23 | Δ % | |
Net Revenue | 1,036.5 | 889.1 | 16.6% | 980.3 | 5.7% | 2,858.0 | 2,647.4 | 8.0% |
Domestic Market | 647.8 | 554.5 | 16.8% | 587.8 | 10.2% | 1,735.0 | 1,601.0 | 8.4% |
Foreign Market | 388.7 | 334.5 | 16.2% | 392.5 | -1.0% | 1,123.0 | 1,046.4 | 7.3% |
Foreign Market US$ | 70.1 | 68.5 | 2.3% | 75.2 | -6.8% | 214.3 | 209.2 | 2.5% |
Exports - Brazil US$ | 31.1 | 25.3 | 23.2% | 31.1 | 0.0% | 86.4 | 81.8 | 5.6% |
Gross Profit | 330.9 | 319.3 | 3.7% | 315.5 | 4.9% | 936.1 | 936.0 | 0.0% |
Gross Margin | 31.9% | 35.9% | -4.0 pp | 32.2% | -0.3 pp | 32.8% | 35.4% | -2.6 pp |
Operating Profit | 154.2 | 157.9 | -2.4% | 76.6 | 101.3% | 347.7 | 461.1 | -24.6% |
Operating Margin | 14.9% | 17.8% | -2.9 pp | 7.8% | 7.1 pp | 12.2% | 17.4% | -5.3 pp |
EBITDA | 191.2 | 190.2 | 0.5% | 112.3 | 70.3% | 457.5 | 554.1 | -17.4% |
EBITDA Margin | 18.4% | 21.4% | -2.9 pp | 11.5% | 7.0 pp | 16.0% | 20.9% | -4.9 pp |
Net Profit | 89.0 | 106.1 | -16.1% | 41.4 | 115.1% | 239.6 | 294.8 | -18.7% |
Net Margin | 8.6% | 11.9% | -3.3 pp | 4.2% | 4.4 pp | 8.4% | 11.1% | -2.8 pp |
Adjusted EBITDA | 195.4 | 190.2 | 2.8% | 162.5 | 20.2% | 512.0 | 566.7 | -9.7% |
Adjusted EBITDA Margin | 18.9% | 21.4% | -2.5 pp | 16.6% | 2.3 pp | 17.9% | 21.4% | -3.5 pp |
Investments | 44.2 | 17.5 | 153.0% | 20.1 | 120.5% | 85.9 | 74.1 | 16.0% |
ROIC | 12.9% | 17.1% | -4.2 pp | 11.4% | 1.5 pp | 12.9% | 17.1% | -4.2 pp |
Values in R$ million (except for exports, profit per share and percentage) | ||||||||
4Q20 | 4Q19 | Δ % | 4Q19 | Δ % | 2020 | 2019 | Δ % | |
3Q24 | 3Q23 | Δ % | 2Q24 | Δ % | 9M24 | 9M23 | Δ % | |
Average price of the US dollar | 5.55 | 4.88 | 13.6% | 5.22 | 6.3% | 5.24 | 5.01 | 4.6% |
BUSINESS OVERVIEW IN THE QUARTER
In the 9-month period of 2024, net revenue grew by 8.0%, with a highlight in the third quarter, which showed an increase of 16.6% in the same line. During this period, the Company worked to maintain its business level by developing new projects and exploring the strong demand in all markets, but mainly in the domestic replacement market.
The third quarter was also marked by operational challenges related to port logistics, which impacted not only our results but business around the world as well. The Company worked actively to maintain the level of service to the markets, mitigating the risks of inventory shortages in warehouses, thus making it possible to make deliveries in different freight modes, such as air, and extending deliveries to the next quarter.
Despite the adversities, the Company continued to win new business, mainly for its line of brake linings for commercial vehicles, in addition to exploring the demands of the different geographies in which it operates. Another positive point is the gradual recovery of the Argentine market's consumer appetite. Operations in the country are focused on strengthening the portfolio and sales team.
EARNINGS RELEASE 3Q24 | 2 |
SALES PERFORMANCE
VOLUMES AND NET REVENUE BY PRODUCT FAMILY
NET REVENUEVOLUMES
Sales Volumes by Product Line in millions of pieces or liters | |||||||||||||
3Q24 | 3Q23 | Δ % | 2Q24 | Δ % | 9M24 | 9M23 | Δ % | ||||||
Friction Material | 28.1 | 26.1 | 7.9% | 26.8 | 4.9% | 79.7 | 77.5 | 2.8% | |||||
Components for the Brake System | 3.0 | 2.3 | 29.8% | 2.6 | 16.6% | 7.8 | 7.1 | 10.1% | |||||
Components for the | 5.8 | 5.2 | 10.0% | 5.5 | 5.0% | 15.7 | 14.8 | 6.4% | |||||
Suspension, Steering and Powertrain | |||||||||||||
Sales Revenue by Material in R$ million | |||||||||||||
3Q24 | 3Q23 | Δ % | 2Q24 | Δ % | 9M24 | 9M23 | Δ % | ||||||
Friction Material | 480.2 | 46.3% | 425.6 | 47.9% | 12.8% | 467.3 | 47.7% | 2.8% | 1,366.9 | 47.8% | 1,273.4 | 48.1% | 7.3% |
Components for the Brake System | 224.3 | 21.6% | 176.1 | 19.8% | 27.4% | 193.6 | 19.8% | 15.9% | 570.9 | 20.0% | 522.6 | 19.7% | 9.2% |
Components for the | 291.7 | 28.1% | 258.4 | 29.1% | 12.9% | 272.1 | 27.8% | 7.2% | 796.8 | 27.9% | 735.6 | 27.8% | 8.3% |
Suspension, Steering and Powertrain | |||||||||||||
Other products * | 40.3 | 3.9% | 28.9 | 3.3% | 39.3% | 47.2 | 4.8% | -14.6% | 123.4 | 4.3% | 115.7 | 4.4% | 6.6% |
Net Revenue | 1,036.5 | 100.0% | 889.1 | 100.0% | 16.6% | 980.3 | 100.0% | 5.7% | 2,858.0 | 100.0% | 2,647.4 | 100.0% | 8.0% |
The components are detailed at the end of this report. | |||||||||||||
Friction volume has changed in total for 2023 due to the reclassification of intercompany sales and accounting for sets for parts. |
The Company maintained growth in volume and revenue in the third quarter of 2024. The main highlights during the quarter were: the advance of the US dollar, the continued strong demand for the domestic replacement market and the gradual recovery of the Argentine market. Other contributing factors were:
Friction Materials
Brake pads for light vehicles remained prominent, influenced by the growing market demand in the replacement segment.
Brake linings for commercial vehicles showed growth, driven by demand in the international market for new business and by the defense of market share in the domestic market.
Components for the Brake System
Brake discs grow in revenue and volume due to the recovery of exports to the Argentine market and the return to normal orders at the automaker, after shutdowns in 2Q24.
Cylinders from the Controil site also see growth connected to demand from the replacement market.
Suspension, Steering and Powertrain Components
Extrema site continues to work on expanding its portfolio and gaining market share in Brazil, which has driven growth in volume and revenue.
Inventory allocated to operations located in Argentina has helped to increase sales, especially of shock absorbers, driven by the gradual return of consumption in this market.
Other Products
In the composite materials line, began to supply to a new contract in August of this year and this justifies the growth of this item. In addition, Composs remains active in research and development of new technologies applied to products.
NOTE: It is important to note that the performance of sales revenue by friction material family does not necessarily reflect the same behaviour in volumes, as we have to consider the effects from exchange rate variations, product mix and prices charged. For more details on the families, see Annex IV.
EARNINGS RELEASE 3Q24 | 3 |
Below is a graph in casual format showing the effects that have changed the consolidated revenue performance in 3Q24 comparing to 3Q23.
Net Revenue
889.1 | 93.3 | 1.7 | 46,6 | 1,030.6 | 27.9 | 1,036.5 |
-22.0 | ||||||
3 Q 2 3 | D o m est i c | F o r ei g n | E xch a n g e | 3 Q 2 4 | I n f l a t i o n ¹ | D ev a l u a t i o n / | 3Q 24 |
M a r k et | M a r k et | Ra t e | A p p r eci a t i o n | ||||
E xch a n g e r a t e¹ |
Amounts in BRL Millions. ¹ Economic update in highly inflationary economy as provided for in CPC 42/IAS 29. | Argentina |
REVENUE BY MARKET
Net Revenue by Markets | |||||||||||||
Markets | 3Q24 | 3Q23 | Δ % | 2Q24 | Δ % | 9M24 | 9M23 | Δ % | |||||
DM Aftermarket | 580.9 | 56.0% | 502.1 | 56.5% | 15.7% | 534.0 | 54.5% | 8.8% | 1,560.1 | 54.6% | 1,444.8 | 54.6% | 8.0% |
DM OEM | 66.9 | 6.5% | 52.4 | 5.9% | 27.5% | 53.9 | 5.5% | 24.2% | 174.9 | 6.1% | 156.2 | 5.9% | 12.0% |
Domestic Market | 647.8 | 62.5% | 554.5 | 62.4% | 16.8% | 587.8 | 60.0% | 10.2% | 1,735.0 | 60.7% | 1,601.0 | 60.5% | 8.4% |
FM Aftermarket | 335.8 | 32.4% | 284.1 | 32.0% | 18.2% | 332.8 | 34.0% | 0.9% | 956.6 | 33.5% | 894.8 | 33.8% | 6.9% |
FM OEM | 52.9 | 5.1% | 50.4 | 5.7% | 5.1% | 59.6 | 6.1% | -11.2% | 166.5 | 5.8% | 151.6 | 5.7% | 9.8% |
Foreign Market | 388.7 | 37.5% | 334.5 | 37.6% | 16.2% | 392.5 | 40.0% | -1.0% | 1,123.0 | 39.3% | 1,046.4 | 39.5% | 7.3% |
Total Aftermarket Net Revenue | 916.7 | 88.4% | 786.2 | 88.4% | 16.6% | 866.8 | 88.4% | 5.8% | 2,516.6 | 88.1% | 2,339.6 | 88.4% | 7.6% |
Total OEM Net Revenue | 119.8 | 11.6% | 102.8 | 11.6% | 16.5% | 113.5 | 11.6% | 5.6% | 341.4 | 11.9% | 307.8 | 11.6% | 10.9% |
Total Net Revenue | 1,036.5 | 100% | 889.1 | 100% | 16.6% | 980.3 | 100% | 5.7% | 2,858.0 | 100% | 2,647.4 | 100% | 8.0% |
Values in R$ million |
Note: The reclassification of intercompany revenue eliminations has modified the result of the Revenue lines in the Domestic and International Market in 2023. The changes made are highlighted in the Company's Modeling Guide.
Domestic Market (DM)
Replacement
Brake linings for commercial vehicles are the highlight in this quarter in terms of revenue, as a result of the price repositioning work carried out in the second quarter of this year.
Brake pads for light vehicles continue to grow in volume and revenue, reflecting the level of service offered to the market.
Brake system components such as discs and cylinders contribute positively to the result due to strong demand and commercial strategies.
Trailers Division
Brake linings contribute to growth in the trailers division on account of the strong sales for heavy vehicles after the update of pollutant emission standards (Euro 6).
The acquisition and approval of new business operations in the last cycle drives the revenue growth of brake pads for light vehicles.
International Market (IM)
In this quarter, in general, all operations around the world suffered from difficulties in logistics involving sea freight. Our operations worked to mitigate risks and maintain the level of service and support to the markets. This
EARNINGS RELEASE 3Q24 | 4 |
factor was the main barrier to even greater revenue growth in the international market when comparing 3Q24 x 2Q24.
Replacement
Despite the logistical crisis, Fremax subsidiary maintained good export levels, driven by the capacity expansion of Port of Itapoá, in addition to the redirection of orders to different ports in Santa Catarina. Extrema site recorded an average delay of approximately 60 days in the receipt of goods and components for production, impacting sales in the quarter. Although the order book has been maintained so far, the effective sale will depend on the replenishment of distributors' stocks in the coming months.
Considering that the warehouse in Argentina has good levels of supply, the operation showed good results in terms of revenue and margin, as a result of the gradual return of consumption. Components for the brake and suspension system, steering and powertrain were the highlights.
Trailers Division
The increase between 3Q24 and 3Q23 is linked to the rise in the US dollar and growth in sales of brake linings for commercial vehicles to the United States due to new business.
In addition, the operation in India also stands out in the development and acquisition of new business focused on heavy vehicles.
Exports - Brazil US$ | ||||
25.3 | 26.7 | 24.2 | 31.1 | 31.1 |
3Q23 | 4Q23 | 1Q24 | 2Q24 | 3Q24 | |
CAGR 3Q23/3Q24 | 5.4% | | | 3Q23/3Q24 | 23.2% | |
Foreign Market US$ | |||
68.5 | 69.0 | 75.2 | 70.1 |
37.0 |
3Q23 | 4Q23 | 1Q24 | 2Q24 | 3Q24 | |
CAGR 3Q23/3Q24 | 5.4% | | | 3Q23/3Q24 | 23.2% |
REVENUE BREAKDOWN ACROSS THE GLOBE
NORTH AMERICA | EUROPE AND EURASIA |
3Q24 | 13.8% |
3Q24 | 7.8% |
3Q23 | 13.0% |
3Q23 9.0% | |
CENTRAL AMERICA | ||||||
AND THE CARIBBEAN | ASIA-PACIFIC | |||||
3Q24 | 1.1% | 3Q24 | 2.6% | |||
3Q23 | 1.3% | 3Q23 | 2.7% | |||
BRAZIL | AFRICA | |||||
AND MIDDLE EAST | ||||||
3Q24 | 62.5% | |||||
SOUTH AMERICA W/ BRAZIL | 3Q24 | 0.4% | ||||
3Q24 | 11.8% | 3Q23 | 62.4% | 3Q23 | 1.0% | |
3Q23 | 10.7% | |||||
EARNINGS RELEASE 3Q24 | 5 |
North America: the increase in revenue was driven by the strengthening of commercial partnerships for heavy vehicles.
South America: the Argentine market showed positive signs of recovery with a gradual resumption in consumption. Operations are focused on developing the portfolio and strengthening the sales team.
Europe and Eurasia: operations on the continent were impacted by the global logistics crisis, which affected performance. As a relevant point, the Company launched in this quarter brake calipers, which will be sold under the Fremax brand.
Asia: operations on the continent maintained their business level, with emphasis on the unit in India, which remains active in developing new partnerships related to the automaker for products in the brake lining line for heavy vehicles.
OPERATIONAL PERFORMANCE
COST OF GOODS SOLD (COGS AND GROSS PROFIT)
In 3Q24, cost of goods sold totalled R$ 705.5 million, accounting for 68.1% of net revenue, and resulted in gross profit of R$ 330.9 million and gross margin of 31.9%, 4.0 percentage points lower than in the same period last year. The chart below shows the composition of COGS and the main highlights.
11% | 13% | Raw Materials | |||
3% | 5% | 5% | Labor | ||
3% | |||||
3Q23 | |||||
12% | 3Q24 | 14% | Depreciation | ||
Other fixed Costs | |||||
69% | 65% | ||||
Other Variable Costs | |||||
*General Manufacturing Expenses |
A growth of 4 percentage points in the raw material line (3Q24 vs. 3Q23), mainly related to the increase in freight costs.
Changes in the Argentine economic scenario and their inflationary effects, detailed in our modelling guide.
Mismatch between the receipt of costs and the transfer of prices.
Furthermore, the constant pursuit of operational efficiency and productivity gains were important factors in sustaining the gross margin in this quarter.
Gross Profit
319.3 | 289.7 | 315.5 | 330.9 | ||
202.6 | |||||
35.9% | 27.3% | 34.4% | 32.2% | 31.9% | |
3Q23 | 4Q23 | 1Q24 | 2Q24 | 3Q24 | |
CAGR 3Q23/3Q24 | 0.9% | 3Q23/3Q24 | 3.7% | |||
EARNINGS RELEASE 3Q24 | 6 |
OPERATING EXPENSES AND REVENUES
0 | 3Q24 | 3Q23 | Δ % | 2Q24 | Δ % | 9M24 | 9M23 | Δ % | |||||
Selling Expenses | -101.2 | -9.8% | -82.7 | -9.3% | 22.4% | -94.9 | -9.7% | 6.6% | -275.3 | -9.6% | -241.0 | -9.1% | 14.2% |
Variable Expenses w/ Sales | -36.5 | -3.5% | -28.3 | -3.2% | 29.1% | -33.9 | -3.5% | 7.7% | -99.6 | -3.5% | -86.4 | -3.3% | 15.3% |
Other Expenses w/ Sales | -64.7 | -6.2% | -54.4 | -6.1% | 18.9% | -61.0 | -6.2% | 6.1% | -175.7 | -6.1% | -154.7 | -5.8% | 13.6% |
Administrative Expenses | -80.9 | -7.8% | -63.8 | -7.2% | 26.9% | -79.6 | -8.1% | 1.7% | -231.9 | -8.1% | -183.4 | -6.9% | 26.5% |
Other Net Expenses/Income | 5.0 | 0.5% | -14.6 | -1.6% | -134.0% | -64.2 | -6.6% | -107.7% | -81.3 | -2.8% | -50.3 | -1.9% | 61.8% |
Other Operating Expenses | -17.7 | -1.7% | -19.0 | -2.1% | -6.7% | -71.4 | -7.3% | -75.2% | -121.4 | -4.2% | -87.0 | -3.3% | 39.6% |
Other Operating Income | 22.7 | 2.2% | 4.3 | 0.5% | 421.4% | 7.2 | 0.7% | 214.8% | 40.1 | 1.4% | 36.7 | 1.4% | 9.1% |
Equity Equivalence | 0.4 | 0.0% | -0.2 | 0.0% | -273.3% | -0.1 | 0.0% | -439.6% | 0.20 | 0.0% | -0.17 | 0.0% | -217.1% |
Total Operating Exp/Income | -176.7 | -17.1% | -161.3 | -18.1% | 9.5% | -238.9 | -24.4% | -26.0% | -588.4 | -20.6% | -474.9 | -17.9% | 23.9% |
Values in R$ millions and % over Net Revenue |
The third quarter showed a 9.5% increase in operating expenses and revenues compared to the same period last year. Below are some highlights of the quarter:
The increase in selling expenses is mainly due to freight and commission costs. High freight costs are a result of global logistics issues, especially related to container shortages and port congestion.
In administrative expenses, M&A expenses totalled R$ 1.5 million in the quarter and R$ 5.5 million in 9M24. Given the connection with the Company's M&A strategy, which is increasingly recurrent, these expenses will not be considered for adjusted EBITDA purposes. Additionally, the breakdown of expenses by nature is available in Note no. 26.
In 3Q24, Farloc´s building was sold and the subsidiary moved to Buenos Aires, impacting the other expenses and revenues lines. The net result was a negative R$ 5.7 million, due to the adjustment for inflation over the last few years.
Other operating revenues have an increased balance related to the reversal of the provision for the restructuring of Fanacif (which took place in 2Q24, in the amount of R$ 1.5 million) and to the Green Mobility and Innovation Program (Mover) in the amount of R$ 7.5 million. The accumulated balance is detailed in Note no. 11.
EBITDA AND ADJUSTED E EBITDA
Consolidated EBITDA for 3Q24 totalled R$ 191.2 million, with a margin of 18.4%, down 2.9 percentage points from the same period last year. See below relevant factors in this quarter:
The aforementioned delays in port logistics, impacting not only inbound but also outbound. Favourable exchange rate for exports.
EBITDA Reconciliation | 3Q24 | 3Q23 | Δ % | 2Q24 | Δ % | 9M24 | 9M23 | Δ % |
and Adjusted EBITDA | ||||||||
Net Profit | 89.0 | 106.1 | -16.1% | 41.4 | 115.1% | 239.6 | 294.8 | -18.7% |
Financial Result | 42.5 | 13.9 | 206.1% | -13.2 | -421.4% | -22.1 | 55.1 | -140.1% |
Depreciation | 37.0 | 32.2 | 14.8% | 35.6 | 3.9% | 109.7 | 93.0 | 18.0% |
Income Tax / Social Contribution | 22.6 | 37.9 | -40.3% | 48.5 | -53.3% | 130.3 | 111.2 | 17.2% |
EBITDA | 191.2 | 190.2 | 0.5% | 112.3 | 70.3% | 457.5 | 554.1 | -17.4% |
EBITDA Margin | 18.4% | 21.4% | -2.9 pp | 11.5% | 7.0 pp | 16.0% | 20.9% | -4.9 pp |
Non-recurring Events | 4.2 | 0.0 | 0.0% | 50.2 | -91.6% | 54.4 | 12.6 | 332.0% |
Asset impairment | 0.0 | 0.0 | 0.0% | 8.3 | -100.0% | 8.3 | 0.0 | 0.0% |
Fanacif Restructuring | -1.5 | 0.0 | 0.0% | 41.9 | -103.5% | 40.4 | 0.0 | 0.0% |
Rescission action Nakata | 0.0 | 0.0 | 0.0% | 0.0 | 0.0% | 0.0 | -24.5 | -100.0% |
Exclusion of ICMS from the PIS calculation base and COFINS | 0.0 | 0.0 | 0.0% | 0.0 | 0.0% | 0.0 | 37.1 | -100.0% |
Sale of assets | 5.7 | 0.0 | 0.0% | 0.0 | 0.0% | 5.7 | 0.0 | 0.0% |
Adjusted EBITDA | 195.4 | 190.2 | 2.8% | 162.5 | 20.3% | 512.0 | 566.7 | -9.7% |
EBITDA Margin - Adjusted | 18.9% | 21.4% | -2.5 pp | 16.6% | 2.3 pp | 17.9% | 21.4% | -3.5 pp |
Values in R$ million |
EARNINGS RELEASE 3Q24 | 7 |