Earnings Release
4Q24 | 2024
February 21st, 2025
EARNINGS RELEASE 4Q24 | 2024
In 4Q24, Net Revenue of R$ 2.5 billion, EBITDA of R$ 355.3 million and Net Income of R$ 176.5 million.
Sequential improvement is the result of the dedication of our employees and the ongoing actions focused on sales growth and profitability.
NET
REVENUE
SALES
VOLUME
MARKET
SHARE
EBITDA
CASH
GENERATION
R$ 2.5 billion in 4Q24;
R$ 9.7 billion in 2024;
431.4 thousand tons sold in 4Q24; 1,754.8 thousand tons sold in 2024;
Market share volume gain of cookies & crackers and wheat flour in 2024;
R$ 355.3 million in 4Q24;
R$ 1.2 billion in 2024;
R$ 175 million of Operating Cash Generation in 4Q24;
R$ 592 million of Operating Cash Generation in 2024.
WEBINAR 4Q24 | IR CONTACT |
Gustavo Lopes Theodozio | |
February 24th, 2024 | Vice-President of Investments and Controllership |
11h (Brasília time) | 09h (New York time) | Fabio Cefaly |
New Business and Investor Relations Officer | |
Zoom Meetings: Click Here | Rodrigo Ishiwa |
Youtube:Click Here | Investor Relations Manager |
Everlene Pessoa | |
MDIA3 | Investor Relations Specialist |
Closing on 12/30/2024 | Lucas Laport |
Share Price: R$ 20.05 per share | Investors Relations Intern |
Market Cap: R$ 6.8 billion | Contato: ri@mdiasbranco.com.br |
youtube.com/rimdias | ri.mdiasbranco.com.br | ri@mdiasbranco.com.br |
EARNINGS RELEASE 4Q24 | 2024
Evolution in the Shareholder Remuneration Policy:
MONTHLY DIVIDEND PAYMENTS
The current Policy aims to propose dividends and/or interest on equity corresponding to 80% of adjusted net profit, with interim distributions of R$ 0.06 per share at the end of each quarter, in addition to the payment of residual value after approval by the Shareholders' Meeting that deliberates on the financial statements for the year in question.
The Revised Policy preserves the distribution of 80% of adjusted net profit and increases the frequency of interim distributions from quarterly to monthly. Thus, monthly distributions will be R$0.03 per share, totaling R$0.09 per quarter, respecting the calendar dates below. The payment of the residual amount will occur after approval by the General Meeting that deliberates on the financial statements for the year in question.
The Revised Policy will be adopted from April 2025 onwards. Therefore, until March 2025, the Current Policy remains effective. The calendar below indicates the dates to interim distributions for 2025:
Dividends 2025 | Record Date | Ex-Dividends Date | Payment Date | Value per share | ||||||||
(Quarterly) | (R$) | |||||||||||
1Q25 | 03/21/25 | 03/24/25 | 03/31/25 | R$ 0.06 | ||||||||
Dividends 2025 | Record Date | Ex-Dividends Date | Payment Date | Value per share | ||||||||
(Monthly) | (R$) | |||||||||||
Apr-25 | 04/22/25 | 04/23/25 | 04/30/25 | R$ 0.03 | ||||||||
May-25 | 05/22/25 | 05/23/25 | 05/30/25 | R$ 0.03 | ||||||||
Jun-25 | 06/20/25 | 06/23/25 | 06/30/25 | R$ 0.03 | ||||||||
Jul-25 | 07/23/25 | 07/24/25 | 07/31/25 | R$ 0.03 | ||||||||
Aug-25 | 08/21/25 | 08/22/25 | 08/29/25 | R$ 0.03 | ||||||||
Sep-25 | 09/22/25 | 09/23/25 | 09/30/25 | R$ 0.03 | ||||||||
Oct-25 | 10/23/25 | 10/24/25 | 10/31/25 | R$ 0.03 | ||||||||
Nov-25 | 11/19/25 | 11/21/25 | 11/28/25 | R$ 0.03 | ||||||||
Dec-25 | 12/18/25 | 12/19/25 | 12/30/25 | R$ 0.03 | ||||||||
For more information, access the Shareholder Remuneration Policy on M. Dias Branco's Investor Relations website: https://ri.mdiasbranco.com.br/en/corporate-governance/shareholder-remuneration/
In 2024, the Company recorded quarterly payments of interest on capital in the amount of R$80.5 million, and additionally, R$93.9 million in dividends will be paid on 04/01/2025, equivalent to R$0.28 per share. The proposal will be submitted for approval at the Annual General Meeting, which will be held on March 28, 2025.
Dividend 2024 | Record Date | Ex-Dividends Date | Payment Date |
Residual | 03/18/25 | 03/19/25 | 04/01/25 |
Finally, this evolution reaffirms our commitment to generating value for shareholders, while preserving the resources necessary to execute our strategy for growth with profitability.
3
EARNINGS RELEASE 4Q24 | 2024
ECONOMIC AND FINANCIAL PERFORMANCE
MDIA3, the leader in the Brazilian cookies and crackers, pasta, granolas and healthy cookies markets releases the results for the fourth quarter of 2024 (4Q24) and for the year (2024).
Financial and Operating Results | 4Q24 | 4Q23 | Var. % | 3Q24 | Var. % | 2024 | 2023 | Var. % |
Net Revenue (R$ million) | 2,489.0 | 2,770.5 | -10.2% | 2,403.5 | 3.6% | 9,662.9 | 1,840.3 | -10.9% |
Total Sales Volume (thousand tonnes) | 431.4 | 479.5 | -10.0% | 419.3 | 2.9% | 1,754.8 | 1,786.9 | -1.8% |
Net Income (R$ million) | 176.5 | 341.9 | -48.4% | 124.7 | 41.5% | 646.0 | 888.7 | -27.3% |
EBITDA (R$ million) | 355.3 | 442.4 | -19.7% | 228.9 | 55.2% | 1,198.3 | 1,433.6 | -16.4% |
EBITDA Margin | 14.3% | 16.0% | -1.7 p.p | 9.5% | 4.8 p.p | 12.4% | 13.2% | -0.8 p.p |
Net Cash (Debt) (R$ million) | -24.6 | 73.6 | n/a | 28.6 | n/a | -24.6 | 73.6 | n/a |
Net Cash (Debt) / EBITDA (last 12 months) | 0.0 | 0.1 | -100.0% | 0.0 | n/a | 0.0 | 0.1 | -100.0% |
Capex (R$ million) | 106.8 | 143.3 | -25.5% | 84.6 | 26.2% | 304.4 | 366.7 | -17.0% |
Net Cash generated from operating activities* | 175.0 | 583.9 | -70.0% | 67.2 | 160.4% | 591.7 | 2,125.8 | -72.2% |
*Net Cash generated from operating activities. |
EARNINGS RELEASE 4Q24 | 2024
Net Revenue
In 4Q24, net revenue grew 3.6% compared to 3Q24, with an increase in volumes (+2.9%) and average price (+1.8%). It is important to highlight that there was growth in the three groups of categories: Core Products, Wheat Milling and Refined Oils, and Adjacencies.
Net revenue, volume and price | 4Q24 | 4Q23 | Var. % | 3Q24 | Var. % | 2024 | 2023 | Var. % |
Volume | 431.4 | 479.5 | -10.0% | 419.3 | 2.9% | 1,754.8 | 1,786.9 | -1.8% |
Price | 5.8 | 5.8 | 0.0% | 5.7 | 1.8% | 5.5 | 6.1 | -9.8% |
Net Revenue | 2,489.0 | 2,770.5 | -10.2% | 2,403.5 | 3.6% | 9,662.9 | 1,840.3 | -10.9% |
Core Products* | 1,916.7 | 2,170.8 | -11.7% | 1,859.7 | 3.1% | 7,521.9 | 8,456.0 | -11.0% |
Wheat Milling and Refined Oils** | 441.7 | 484.3 | -8.8% | 419.1 | 5.4% | 1,659.1 | 1,941.6 | -14.5% |
Adjacencies*** | 130.6 | 115.4 | 13.2% | 124.7 | 4.7% | 481.9 | 442.7 | 8.9% |
*Cookies and Crackers, Pasta and Margarine; | ||||||||
**Wheat Flour, Bran and Industrial Vegetable Shortening; | ||||||||
***Cakes, snacks, cake mix, packaged toast, healthy products, sauces and seasonings. |
The actions focused on sales growth, presented in the 3Q24 release, were fundamental to the 4Q24 results:
- We consolidated the commercial team in a single national leadership, increasing the dynamism and synergy in negotiations with retailers;
- We consolidated a team dedicated entirely to commercial excellence, starting to operate with more information and better control of the route to the market (go-to-market),at the level of customers, stores and SKUs and improving the control of investments (e.g., discounts, campaigns, etc.);
- We allocated the Revenue Management team to the Vice Presidency of Investments and Controllership. The change is bringing stricter control of commercial budgets and pricing adjustments;
- We created a team focused on Foodservice. Now we have a dedicated team at the national level. Additionally, we have developed specific Marketing and Trade Marketing approaches for the segment;
- We strengthened exports, with net revenue growth of 26% year-over-year, including revenue from Las Acacias. In addition to the synergies obtained in Uruguay in the Las Acacias operation, there was growth in the countries where we already operate and entry into other markets.
In addition to these actions, it is important to highlight innovation, with high value-added launches, such as new ramen with technology that eliminates frying from the manufacturing process. In the Piraquê brand, we innovated with the Leite Maltado Black and Goiabinha Cookies, in addition to a Piraquê + Bob's partnership, with the Goiabinha Piraquê desserts. At Vitarella, we innovate with wafer cookies in the flavors cocada with peanuts and green corn with guava, a combination of regional flavors in celebration of São João. At the Fit Food brand, we launched the new line of chocolates and cookies, with chocolate bars, candies with filling, and Arrozfajor, the first on the market with hazelnut filling and real chocolate coating. At the Jasmine brand, we launched the line of granola with a carbon neutral seal: Premium Low Carb Granolas and Mini Granolas, practical and healthy options for everyday life.
5
EARNINGS RELEASE 4Q24 | 2024
Returning to M. Dias Branco's consolidated results, compared to 4Q23, the retraction in net revenue was due to lower volumes sold. At the end of 2023, we stocked up our customers with the implementation of the SAP system in January 2024, thus creating a higher comparison base for the quarterly results. The implementation was successful, providing us with greater agility and efficiency in our processes.
Year-to-date, the drop in net revenue reflects the reduction in volumes, impacted both by the implementation of the SAP system, already mentioned above, and by the retraction observed in 3Q24, due to the price adjustments implemented in July 2024.
Cookies & Crackers and Pasta Markets
The markets of Cookies & Crackers and Pasta (sell-out) increased in volume and value in the quarter and in the year.
Market share
COOKIES & | PASTA | ||||
CRACKERS | 4Q24 vs. | 2024 vs. | 4Q24 vs. | 2024 vs. | |
4Q23 | 2023 | 4Q23 | 2023 | ||
Value | +4% | +2% | Value | +1% | +2% |
Sold | Sold | ||||
Volume | +1% | +2% | Volume | +3% | +5% |
Sold | Sold | ||||
Units | +4% | +4% | Units | +3% | +7% |
Sold | Sold | ||||
Average Price | +3% | 0% | Average Price | -2% | -3% |
(R$/Kg) | (R$/Kg) | ||||
Source: Nielsen - Retail Index. Total Brazil. INA+C&C. |
In 2024, we increased our market share volume in wheat flour and cookies, as a result of the actions mentioned above. In pasta, we showed a slight retraction in market share compared to the previous year. In wheat flour, we highlight the growth of the domestic subcategory due to the improvement in execution at the point of sale, with new packaging in the Finna brand, including a change in the visual identity.
Cookies & Crackers | Pasta | Wheat Flour | |||
31.8 | 32.0 | 28.9 | 28.8 | 10.7 | 11.9 |
Share | |||||
Volume* | |||||
2023 | 2024 | 2023 | 2024 | 2023 | 2024 |
* Source: Nielsen - Retail Index. Total Brazil. INA+C&C. |
Extraordinary Items in the 4Q24 EBITDA
EBITDA in 4Q24 was impacted by Extraordinary Items that benefited the result by R$ 79 million, with R$ 131 million positives, with emphasis by tax subsidy credits and the reversal of the provision of annual bonus due to the not-achievement of annual targets, and R$ 52 million negatives, with emphasis on severance costs related to the restructuring carried out in 4Q24, among other factors.
In the year, the extraordinary items were unfavorable by R$ 112 million, with R$ 52 million related to the negative items mentioned above and R$ 60 million referring to the scheduled interruptions for the implementation of SAP in Jan/24.
6
EARNINGS RELEASE 4Q24 | 2024
Costs
COGS | 4Q24 | % Net | 4Q23 | % Net | Var. % | 3Q24 | % Net | Var. % | 2024 | % Net | 2023 | % Net | Var. % |
(R$ million) | Rev. | Rev. | Rev. | Rev. | Rev. | ||||||||
Raw material | 1,137.9 | 45.7% | 1,242.5 | 44.8% | -8.4% | 1,095.2 | 45.6% | 3.9% | 4,314.4 | 44.6% | 5,321.8 | 49.1% | -18.9% |
Packages | 167.3 | 6.7% | 174.5 | 6.3% | -4.1% | 158.5 | 6.6% | 5.6% | 633.1 | 6.6% | 663.1 | 6.1% | -4.5% |
Labor | 223.6 | 9.0% | 229.1 | 8.3% | -2.4% | 225.0 | 9.4% | -0.6% | 890.8 | 9.2% | 855.4 | 7.9% | 4.1% |
Indirect costs | 185.4 | 7.4% | 168.3 | 6.1% | 10.2% | 172.1 | 7.2% | 7.7% | 706.7 | 7.3% | 662.8 | 6.1% | 6.6% |
Depreciation and amortization | 59.9 | 2.4% | 56.5 | 2.0% | 6.0% | 51.0 | 2.1% | 17.5% | 210.7 | 2.2% | 212.0 | 2.0% | -0.6% |
Other | 9.9 | 0.4% | 4.8 | 0.2% | n/a | 2.5 | 0.1% | n/a | 13.8 | 0.1% | 32.6 | 0.3% | -57.7% |
Total | 1,784.0 | 71.7% | 1,875.7 | 67.7% | -4.9% | 1,704.3 | 70.9% | 4.7% | 6,769.5 | 70.1% | 7,747.7 | 71.5% | -12.6% |
In 4Q24, COGS (Cost of Goods Sold) increased as a percentage of net revenue compared to both 3Q24 and 4Q23.
Compared to 3Q24, this increase reflects the rise in the cost of palm oil and the devaluation of the Real. In relation to 4Q23, the higher representativeness is due to the lower dilution of fixed cost, due to the retraction of volumes, the devaluation of the Real and the increase in the cost of palm oil.
In 2024, the decrease as a percentage of net revenue was influenced by the drop in the price of wheat in dollars, which offset the effects of the devaluation of the Real and the increase in the cost of palm oil in Reais.
The average price of wheat in the market has been declining since July 2023, except for 2Q24, when weather concerns about the drought in Russia reduced harvest estimates for the year, boosting the price of the commodity. After this increase, the reduction in imports by Turkey and the improvement in expectations for the American harvest put downward pressure on prices. Since then, the commodity has remained stable.
Palm oil stabilized at the end of the quarter, after a strong rise at the beginning of 3Q24. This increase was mainly driven by projections of a drop in production due to adverse weather conditions, especially in Malaysia and South America.
Market Price - Wheat and Palm Oil | ||||||||||||||||||||||||
WHEAT | 349 | 339 | 331 | 325 | 324 | 343 | 342 | 316 | ||||||||||||||||
288 | 269 | 279 | ||||||||||||||||||||||
(US$/TON.) | 249 | 234 | 235 | 227 | 229 | 267 | 266 | 263 | 260 | 256 | ||||||||||||||
213 | 226 | 223 | ||||||||||||||||||||||
Jan-23 | Feb-23 Mar-23 | Apr-23 May-23 Jun-23 | Jul-23 | Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 | Feb-24 Mar-24 | Apr-24 May-24 Jun-24 | Jul-24 | Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 | ||||||||||||||||
PALM | 1,353 | 1,506 | 1,497 | |||||||||||||||||||||
OIL | 1,224 | 1,204 | 1,204 | 1,255 | ||||||||||||||||||||
1,103 | 1,151 | 1,169 | 1,110 | 1,082 | 1,119 | 1,129 | 1,084 | 1,097 | 1,116 | 1,146 | 1,082 | 1,088 | 1,097 | 1,143 | ||||||||||
1,053 1,045 | ||||||||||||||||||||||||
(US$/TON.) | ||||||||||||||||||||||||
Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 | Jul-23 | Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 | Feb-24 Mar-24 | Apr-24 May-24 Jun-24 | Jul-24 | Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 | ||||||||||||||||||
*Source: Wheat - SAFRAS & Mercado; Palm Oil - Rotterdam. |
Vertical Integration
In 4Q24, flour verticalization was 99.7% and shortening verticalization was 100.0%.
Wheat flour | Vegetable shortening | |||||||
4Q24 | 99.7% | 0.3% | 46.4% | 53.6% | 4Q24 | 100.0% | 56.3% | 43.7% |
3Q24 | 99.4% | 0.6% | 43.5% | 56.5% | 3Q24 | 100.0% | 48.9% | 51.1% |
4Q23 | 99.7% | 0.3% | 41.0% | 59.0% | 4Q23 | 100.0% | 46.6% | 53.4% |
Own Production External Source | Sale Internal Consumption | Own Production | External Source | Sale | Internal Consumption |
7
EARNINGS RELEASE 4Q24 | 2024
Production capacity utilization rate
We ended 2024 with a capacity utilization level of 58.8%, a reduction of 1.5 p.p. vs. 2023 due to the reduction in volumes in the period.
Production Capacity Utilization | 2024 | 2023 | Var. |
Total Production | 2,565.4 | 2,613.0 | -1.8% |
Total Production Capacity | 4,364.8 | 4,330.9 | 0.8% |
Capacity Utilization | 58.8% | 60.3% | -1.5 p.p. |
In line with what we communicated in 3Q24, we continue to adjust the logistics, production and distribution network, in order to optimize our cost structure. In October 2024, we transferred the production of pasta from the Madureira plant in Rio de Janeiro to other units, ensuring greater operational efficiency and agility in product delivery. The amounts involved in this process, such as severance cost, are contained in the Extraordinary Items mentioned above.
In January 2025, with the same objective of ensuring greater operational efficiency and increasing our competitiveness in the market, we deactivated the Lençóis Paulista plant, in the State of São Paulo. The items that were previously produced in Lençóis Paulista were relocated to other units.
In addition, in January 2024 we closed the distribution center in Belford Roxo (RJ) and in January 2025, we closed the distribution centers of Aracaju (SE) and São Luís (MA), to optimize the logistics network.
Gross Profit and Gross Margin
Gross profit was R$833.7 million in 4Q24 and R$3.3 billion in 2024.
4Q24 was favored by extraordinary effects in the amount of R$81.7 million, equivalent to 3.3
- in gross margin, with emphasis on credits with subsidies, reversal of the provision for PLR and severance costs related to restructuring.
Variable costs* | 3.0 | 2.6 | 2.7 | 3.0 | 3.1 |
(R$/kg) | |||||
Fixed costs* | 1.0 | 1.0 | 0.9 | 1.1 | 1.1 |
(R$/kg) | |||||
Gross Mg. | 36.3% | 36.6% | 34.9% | 33.5% | |
32.9% | |||||
(%) | |||||
Average Price | 5.8 | 5.4 | 5.2 | 5.7 | 5.8 |
(R$/kg) | |||||
*Without incentives. | 4Q23 | 1Q24 | 2Q24 | 3Q24 | 4Q24 |
The reduction in gross margin vs. the previous year is the result of the increase in variable costs due to the rise in commodities in Reais and the lower dilution of fixed costs due to the drop in volumes.
Gross profit includes subsidies for state investments, of R$ 141.3 million in 4Q24 (R$ 112.2 million in 4Q23), which are carried over to the result in compliance with CPC 07 - Government Subsidies. In 2024, the amount was R$ 445.3 million (R$ 502.8 million in 2023).
Operating Expenses
We report sales and administrative expenses (SG&A) and, separately, the other operating expenses (donations, taxes, depreciation and amortization and others):
Operating Expenses | 4Q24 | % NR | 4Q23 | % NR | Var. % | 3Q24 | % NR | Var. % | 2024 | % NR | 2023 | % NR | Var. % |
(R$ million) | |||||||||||||
Selling | 413.7 | 16.6% | 489.0 | 17.7% | -15.4% | 470.9 | 19.6% | -12.1% | 1,843.0 | 19.1% | 1,900.6 | 17.5% | -3.0% |
Administrative | 66.8 | 2.7% | 86.6 | 3.1% | -22.9% | 81.7 | 3.4% | -18.2% | 323.6 | 3.3% | 322.3 | 3.0% | 0.4% |
(SG&A) | 480.5 | 19.3% | 575.6 | 20.8% | -16.5% | 552.6 | 23.0% | -13.0% | 2,166.6 | 22.5% | 2,222.9 | 20.5% | -2.5% |
Donations | 12.7 | 0.5% | 11.1 | 0.4% | 14.4% | 11.5 | 0.5% | 10.4% | 33.2 | 0.3% | 35.3 | 0.3% | -5.9% |
Taxes | 8.3 | 0.3% | 12.3 | 0.4% | -32.5% | 9.6 | 0.4% | -13.5% | 33.4 | 0.3% | 38.6 | 0.4% | -13.5% |
Depreciation and amortization | 42.4 | 1.7% | 40.3 | 1.5% | 5.2% | 39.9 | 1.7% | 6.3% | 158.2 | 1.6% | 152.9 | 1.4% | 3.5% |
Other operating expenses/(revenue) | 35.2 | 1.4% | 21.5 | 0.8% | 63.7% | 38.5 | 1.6% | -8.6% | 100.3 | 1.0% | 76.8 | 0.7% | 30.6% |
TOTAL | 579.1 | 23.2% | 660.8 | 23.9% | -12.4% | 652.1 | 27.2% | -11.2% | 2,491.7 | 25.8% | 2,526.5 | 23.3% | -1.4% |
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EARNINGS RELEASE 4Q24 | 2024
In 4Q24, administrative and selling expenses (SG&A) showed a nominal reduction and a decrease as a percentage of net revenue, both in comparison with 3Q24 and 4Q23. The retraction is due to the continuous efforts to cost rationalization, in the current context of high costs. In addition, we highlight that the extraordinary items negatively impacted total operating expenses by R$2 million, of which R$25 million was favorable in SG&A and R$27 million unfavorable in other revenues.
SG&A (% NR) | ||||
-1.4 p.p. | ||||
-3.7 p.p. | ||||
24.0% | 23.6% | 23.0% | ||
20.7% | 19.3% | |||
4Q23 | 1Q24 | 2Q24 | 3Q24 | 4Q24 |
In the year, total expenses decreased 1.4%, but increased in representativeness over net revenue, as a result of the 9.8% drop in the average price, which went from R$ 6.1 to R$ 5.5.
Financial Result
Financial Result | 4Q24 | 4Q23 | Var. % | 3Q24 | Var. % | 2024 | 2023 | Var. % |
(R$ million) | ||||||||
Financial Revenue | 104.4 | 134.3 | -22.3% | 155.5 | -32.9% | 421.7 | 417.0 | 1.1% |
Financial Expenses | -100.9 | -119.5 | -15.6% | -147.7 | -31.7% | -427.9 | -549.6 | -22.1% |
TOTAL | 3.5 | 14.8 | -76.4% | 7.8 | -55.1% | -6.2 | -132.6 | -95.3% |
In 4Q24, the Company recorded a positive financial result of R$ 3.5 million, reflecting the leverage of 0.0x (Net Debt / EBITDA last 12 months).
Year-to-date, we recorded a negative result of R$6.2 million, down 95.3% vs. 2023. The improvement in the result reflects the increase in revenue from financial investments and the decrease in the cost of debt.
Taxes on Income
Income and Social Contribution Taxes | 4Q24 | 4Q23 | Var. % | 2024 | 2023 | Var. % |
(R$ million) | ||||||
Income and Social Contribution Taxes | 111.9 | 18.5 | 504.9% | 209.1 | 47.4 | n/a |
Income Tax Incentive | -31.9 | 0.0 | n/a | -31.9 | 0.0 | n/a |
TOTAL | 80.0 | 18.5 | 332.4% | 177.2 | 47.4 | n/a |
We ended 4Q24 and 2024 with a provision of R$80.0 million and R$177.2 million for income tax and CSLL, respectively. The increase is the result of the taxation of subsidies that began in January 2024, as a result of Law 14,789, of December 29, 2023.
The effective tax rate for 2024 was 21.5%. In addition to the impact of taxation on subsidies, the increase in the rate compared to previous years was influenced by the increase in Deferred Income Tax due to the temporary gain from swap operations, which is not part of the calculation basis for federal benefits (SUDENE). This last factor represented 7.2 p.p. of the total rate.
Goodwill
As of 2020, due to the merger of Piraquê, approved on December 27, 2019, the Company began the tax amortization of goodwill arising from the acquisition, currently totaling R$294.2 million, which will be amortized over a minimum period of five years. This amount considers the effectively paid portion of the acquisition price (acquisition price of R$1.5 billion, less the retained portion of the acquisition price of R$97.8 million). However, we expect to fully use the transaction goodwill, in the amount of R$361.6 million.
9
EARNINGS RELEASE 4Q24 | 2024
Latinex was incorporated by Jasmine on August 1, 2023. As of September, Jasmine initiated the tax amortization of the goodwill arising from the acquisition, in the amount of R$156.1 million. Amortization will occur over a minimum period of ten years.
In 4Q24, the Company recorded R$6.3 million in tax benefit from amortization. In 2024, the amount was R$25.0 million.
EBITDA and Net Income
We ended 2024 with EBITDA of R$ 1.2 billion and EBITDA margin of 12.4%. In 4Q24, EBITDA was R$355.3 million, reflecting volume growth and expense control vs. 3Q24. The EBITDA margin was 14.3% in the quarter (+4.8 p.p. vs. 3Q24).
Net Income was R$ 646.0 million in 2024 and R$ 176.5 million in 4Q24.
EBITDA - NET INCOME
EBITDA CONCILIATION (R$ million) | 4Q24 | 4Q23 | Var. % |
Net Profit | 176.5 | 341.9 | -48.4% |
Income Tax and Social Contribution | 111.9 | 18.5 | n/a |
Income Tax Incentive | -31.9 | 0.0 | n/a |
Financial Revenue | -104.4 | -134.3 | -22.3% |
Financial Expenses | 100.9 | 119.5 | -15.6% |
Depreciation and Amortization of cost of goods | 59.9 | 56.5 | 6.0% |
Depreciation and Amortization of expenses | 42.4 | 40.3 | 5.2% |
EBITDA | 355.3 | 442.4 | -19.7% |
EBITDA Margin | 14.3% | 16.0% | -1.7 p.p |
EBITDA (R$ million) and EBITDA Mg. (%) | |||
16.0% | 13.0% | 12.8% | 14.3% |
9.5% | |||
442.4 |
336.8355.3
277.3 | 228.9 | |||
4Q23 | 1Q24 | 2Q24 | 3Q24 | 4Q24 |
3Q24 | Var. % | 2024 | 2023 | Var. % |
124.7 | 41.5% | 646.0 | 888.7 | -27.3% |
21.1 | n/a | 209.1 | 47.4 | n/a |
0.0 | n/a | -31.9 | 0.0 | n/a |
-155.5 | -32.9% | -421.7 | -417.0 | 1.1% |
147.7 | -31.7% | 427.9 | 549.6 | -22.1% |
51.0 | 17.5% | 210.7 | 212.0 | -0.6% |
39.9 | 6.3% | 158.2 | 152.9 | 3.5% |
228.9 | 55.2% | 1198.3 | 1433.6 | -16.4% |
9.5% | 4.8 p.p | 12.4% | 13.2% | -0.8 p.p |
EBITDA - NET REVENUE
EBITDA CONCILIATION (R$ million) | 4Q24 | 4Q23 | Var. % | 3Q24 | Var. % | 2024 | 2023 | Var. % |
Net Revenue | 2,489.0 | 2,770.5 | -10.2% | 2,403.5 | 3.6% | 9,662.9 | 1,840.3 | -10.9% |
Cost of goods sold | -1,784.0 | -1,875.7 | -4.9% | -1,704.3 | 4.7% | -6,769.5 | -7,747.7 | -12.6% |
Depreciation and Amortization of cost of goods | 59.9 | 56.5 | 6.0% | 51.0 | 17.5% | 210.7 | 212.0 | -0.6% |
Tax Incentive (ICMS) | 128.7 | 112.2 | 14.7% | 91.8 | 40.2% | 432.7 | 502.8 | -13.9% |
Operating Expenses | -579.1 | -660.8 | -12.4% | -652.1 | -11.2% | -2,491.7 | -2,526.5 | -1.4% |
Equity in net income of subsidiaries | -1.6 | -0.6 | n/a | -0.9 | 77.8% | -5.0 | -0.2 | n/a |
Depreciation and Amortization of expenses | 42.4 | 40.3 | 5.2% | 39.9 | 6.3% | 158.2 | 152.9 | 3.5% |
EBITDA | 355.3 | 442.4 | -19.7% | 228.9 | 55.2% | 1198.3 | 1433.6 | -16.4% |
EBITDA Margin | 14.3% | 16.0% | -1.7 p.p | 9.5% | 4.8 p.p | 12.4% | 13.2% | -0.8 p.p |
Debt, Capitalization and Cash
We closed 2024 with R$2.1 billion in cash and cash equivalents (R$ 2.3 billion in 2023).
Leverage
Net Debt (Cash) / EBITDA last 12 months
-74 | -149 | -81 | -29 | 25 | ||
0,0x
Capitalization (R$ million) | 12/31/2024 | 12/31/2023 | Var. % |
Cash | 2,152.6 | 2,267.8 | -5.1% |
Linked deposits | 6.4 | 2.8 | n/a |
Financial Investments Short Term | 17.1 | 15.2 | 12.5% |
Financial Investments Long Term | 1.2 | 2.1 | -42.9% |
Total Indebtedness | -2,389.6 | -2,171.1 | 10.1% |
(-) Short Term | -1,103.5 | -522.5 | n/a |
(-) Long Term | -1,286.1 | -1,648.6 | -22.0% |
(-) Derivatives Financial Instruments | 187.7 | -43.2 | n/a |
-0.1x | -0.1x | -0.1x | 0-0.01x.0x | (=) Net Cash (Net Debt) | -24.6 | 73.6 | n/a | |
4Q23 | 1Q24 | 2Q24 | 3Q24 | 4Q24 | Shareholder's Equity | 7,998.0 | 7,604.7 | 5.2% |
Capitalization | 10,387.6 | 9,775.8 | 6.3% |
10