EARNINGS RELEASE 3Q24
Curitiba, November 7th, 2024 - Rumo S.A. (B3:RAIL3) ("Rumo") announces its results for the third quarter of 2024 (3Q24). The results are presented on a consolidated basis, in accordance with Brazilian and international accounting standards (IFRS). Unless otherwise noted, comparisons in this report are made between 3Q24 and 3Q23.
Highlights
- Transported volume of 21.7 billion RTK, with market share gain in the states of Mato Grosso, Goiás, and at the ports of Santos, Paranaguá, and São Francisco do Sul.
- Consolidated yield growth of 18%, boosting quarterly margins.
- Adjusted EBITDA of R$ 2,214 million, an increase of 22%.
- Adjusted Net Profit of R$ 794 million, up by 64%.
- Financial Leverage reduced to 1.4x net debt / Adjusted EBITDA.
3Q24 | 3Q23 | Chg.% | Summary of financial information | 9M24 | 9M23 | Chg.% |
(Amounts in BRL mln) | ||||||
21,651 | 21,157 | 2.3% Total transported volume (millions RTK) | 59,948 | 57,674 | 3.9% | |
1,084 | 1,567 | -30.8% | Logistics solution volume | 3,614 | 3,662 | -1.3% |
3,752 | 3,175 | 18.2% | Net revenue | 10,473 | 8,322 | 25.8% |
(1,886) | (1,738) | 8.5% | Cost of goods sold | (5,520) | (5,033) | 9.7% |
1,866 | 1,438 | 29.8% | Gross profit | 4,953 | 3,290 | 50.5% |
49.7% | 45.3% | 0.4 p.p. | Gross margin (%) | 47.3% | 39.5% | 7.8 p.p. |
(158) | (172) | -8.1% | Sales, general and administrative expenses | (476) | (413) | 15.3% |
(191) | (47) | >100% | Other op. revenues (expenses) | (2,736) | (92) | >100% |
26 | 34 | -23.5% | Equity pick-up | 50 | 56 | -10.7% |
1,542 | 1,252 | 23.2% | Operational profit (loss) | 1,791 | 2,840 | -36.9% |
563 | 562 | 0.2% | Depreciation and amortization | 1,739 | 1,603 | 8.5% |
2,105 | 1,815 | 16.0% | EBITDA | 3,530 | 4,443 | -20.5% |
56.1% | 57.2% | -1,1p.p. | EBITDA margin (%) | 33.7% | 53.4% | -19.7 p.p. |
109 | - | - | Non-recurring adjustments | 2,515 | - | - |
2,214 | 1,815 | 22.0% | Adjusted EBITDA | 6,045 | 4,443 | 36% |
59.0% | 57.2% | -1,1 p.p. | Adjusted EBITDA margin (%) | 57.7% | 53.4% | -43.7 p.p. |
684 | 483 | 41.6% | Net profit (loss) | (690) | 721 | <100% |
18.2% | 15.2% | 3 p.p. | Net margin (%) | -6.6% | 8.7% | -15.2 p.p. |
109 | - | - | Non-recurring adjustments¹ | 2,572 | - | - |
794 | 482 | 64.5% | Adjusted Net profit | 1,883 | 721 | >100% |
21.2% | 15.2% | 6.0 p.p Adjusted Net margin (%) | 18.0% | 8.7% | 9.3 p.p. | |
1,468 | 895 | 64.0% | Capex | 3,611 | 2,516 | 43.5% |
¹For better comparability, the result was adjusted for non-recurring effects, specifically: 3Q24: EBITDA - (i) R$ 109 million | impairment provision in
Malha Sul, with no cash flow effect. Net Income - (ii) R$ 109 million | impairment provision in Malha Sul, with no cash effect. 2Q24: Adjusted EBITDA
- (i) R$2,575 million | provision for impairment at Malha Sul, with no cash flow impact; (ii) R$ 169 million | capital gains in the divestment of 80% of terminals T16 and T19 in Santos. Net Debt Adjusted - (i) R$ 2,575 million | provision for impairment at Malha Sul, with no cash flow impact; (ii) R$ 112 million | capital gains in the divestment of 80% of terminals T16 and T19 in Santos.
Earnings Conference Call | ||
November 8th, 2024 | Investor Relations | |
Portuguese* - 02h00 PM (BRT) | E-mail: ir@rumolog.com | |
* With simultaneous translation to English | Website: ri.rumolog.com | |
Earnings Release
3Q24
1. 3Q24 Executive Summary
In 3Q24, the volume transported reached 21.7 billion RTK, 2% higher than in 3Q23. In the North Operation, there was growth in the transported volume of grains, fertilizers, and pulp. In contrast, the South Operation's performance remains impacted by the indefinite suspension of logistics operations on the railway stretch denominated "Tronco Sul", affecting the industrial products portfolio.
Volume - Consolidated and by Operation
(Bln RTK)
+2% | ||
21.2 | 21.7 | +6% |
16.5 17.4
-5%
3.6 3.2
1.0 1.0
Consolidated | North | South | Container |
3Q23 3Q24
Rumo's market share in grain exports through the Port of Santos rose to 61%, an increase of 8 p.p.. The Company maintained its transported volume during the period, despite a decline in total exports at Santos.
Grains Exports in Santos - SP
(Mm tons and %)
53.3%
+7.8 p.p.
61.1%
16.3
14.1 | |||||
-28.0% | |||||
7.6 | 5.5 | ||||
-0.9% | |||||
8.7 | 8.6 | ||||
3Q23 | 3Q24 | ||||
North Operation | Market | ||||
Source: Orion and Rumo.
Earnings Release
3Q24
Rumo's market share in the state Mato Grosso increased by 5 p.p. in the quarter, reaching a total of 43%. Amid a backdrop of lower grain export demand, the railway strengthened its position as the leading logistics corridor in the state.
38.7%
19.2
11.8
7.4
Grains Exports in MT
(Mm tons and %)
+4.5 p.p.
-18.5%
-1.6%
43.2%
16.9
9.6
7.3
3Q23 | 3Q24 | |||
Rumo | Market | |||
Source: Orion, Comex Stat and Rumo.
Rumo's market share in Goiás reached 28% at the end of the quarter, marking an increase of 8 percentage points. Grain exports originating from the state rose by 100 thousand tons compared to 3Q23, highlighting the competitiveness of Malha Central.
20.4%
Grains Exports in GO
(Mm tons and %)
+7.6 p.p.
28.0%
5.5
4.3 | |||||
-28.4% | |||||
4.4 | 3.1 | ||||
+8.7% | |||||
1.1 | 1.2 | ||||
3Q23 | 3Q24 | ||||
Rumo | Market | ||||
Source: Orion, Comex Stat and Rumo.
Earnings Release
3Q24
The South Operation recorded a 4 p.p. increase in grain market share at the ports of Paranaguá (PR) and São Francisco do Sul (SC), achieving a 26% share.
Grains Exports in Paranaguá - PR and São Francisco do Sul - SC
22.4%
(Mm tons and %)
+3.6.p.p.
26.0%
9.8
8.3 | |||||
7.6 | -18.8% | ||||
6.1 | |||||
-0.8% | |||||
2.2 | 2.2 | ||||
3Q23 | 3Q24 | ||||
Rumo | Market | ||||
Source: Orion and Rumo.
The Brazilian soybean crop forecast for the 23/24 season has been slightly revised upward, with annual production expected to reach 157 million tons, a 2% decrease from the previous season, and exports estimated at 99 million tons, also down by 2%. In Mato Grosso, production is estimated at 41 million tons, with exports of 26 million tons, representing reductions of 11% and 13%, respectively.
Looking ahead to the 24/25 Brazilian soybean season, estimates project a production of 171 million tons and exports of 103 million tons, reflecting increases of 9% and 4% compared to the previous season. In Mato Grosso, production is forecasted at 46 million tons, up by 12%, driven by (i) an expansion of the planted area by approximately 200 thousand hectares due to a better profitability prospect for producers; and (ii) assumption of agricultural productivity within the historical average for the region. The state's export estimate is 27 million tons, up 7% year-over-year.
For the 23/24 Brazilian corn crop, production remains steady at 123 million tons, with exports projected at 38 million tons, a year-over-year decrease of 10% and 30%, respectively. In Mato Grosso, the crop estimate stands at 50 million tons, with exports of 28 million tons.
In the 24/25 season, Brazilian corn production is expected to reach 130 million tons, with exports projected at 46 million tons, representing increases of 6% and 20%, respectively. Mato Grosso is forecasted to maintain stable production and export volumes at 50 million and 27 million tons, with an expanded planted area balancing the return of agricultural productivity to historical levels.
Production and Exports in Brazil
(Mm tons and %)
23/24e | 24/25e | Chg.% | |
Soybeans | |||
Production | 156.5 | 170.9 | +9.2% |
Exports | 99.1 | 103.0 | +3.9% |
Corn | |||
Production | 122.9 | 129.8 | +5.6% |
Exports | 38.2 | 46.0 | +20.4% |
Source: MI Rumo, AG Rural, Veeries, Orion, Comex Stat. IMEA
Note: (e) - estimates
Production and Exports in MT
(Mm tons and %)
23/24e | 24/25e | Chg.% | |
Soybeans | |||
Production | 41.2 | 46.3 | +12.3% |
Exports | 25.7 | 27.4 | +6.7% |
Corn | |||
Production | 50.5 | 50.5 | +0.0% |
Exports | 27.7 | 27.3 | -1.5% |
Earnings Release
3Q24
Financial Information
In 3Q24, net revenue reached R$ 3,752 million, an increase of 18% compared to 3Q23. This growth was primarily driven by the North Operation, which grew 24%, supported by higher tariffs and increased transported volume.
Variable costs rose by 11%, reflecting both the increased unit fuel cost and higher transported volumes. Fixed costs and general and administrative expenses increased by 8% year-over-year, as Rumo strengthened its organizational structure and processes to support its growth strategy, efficiency gains, and risk management, in line with previous quarters.
Adjusted EBITDA reached R$ 2,214 million, with a margin of 59%. The contribution margin expansion in the quarter, coupled with higher transported volumes, served as key growth drivers.
Adjusted net income for the quarter was R$ 794 million, marking the all-time high quarterly result in the Company's history.
Financial leverage continues to follow this year's trend, reaching 1.4x, with net comprehensive debt stable at R$
10 billion.
2. Consolidated Operating and Financial Indicators
3Q24 | 3Q23 | Chg.% | Summary of financial information | 9M24 | 9M23 | Chg.% |
(Amounts in BRL mIn) | ||||||
21,651 | 21,157 | 2.3%Total transported volume (millions RTK) | 59,948 | 57,674 | 3.9% | |
18,110 | 17,718 | 2.2% | Agricultural products | 49,792 | 48,120 | 3.5% |
2,107 | 1,489 | 41.5% | Soybean | 21,939 | 20,799 | 5.5% |
2,896 | 2,882 | 0.5% | Soybean meal | 8,627 | 7,899 | 9.2% |
10,006 | 10,403 | -3.8% | Corn | 11,210 | 12,083 | -7.2% |
1,584 | 1,640 | -3.4% | Sugar | 3,895 | 3,329 | 17.0% |
1,517 | 1,304 | 16.3% | Fertilizers | 3,945 | 3,760 | 4.9% |
- | - | - | Other | 177 | 249 | -29.1% |
2,492 | 2,390 | 4.2% | Industrial products | 7,104 | 6,760 | 5.1% |
1,453 | 1,693 | -14.2% | Fuels | 4,442 | 4,333 | 2.5% |
1,039 | 697 | 49.0% | Industrial | 2,662 | 2,427 | 9.7% |
1,050 | 1,049 | 0.1% | Containers | 3,052 | 2,794 | 9.2% |
3,752 | 3,175 | 18.2% | Net revenue | 10,473 | 8,322 | 25.8% |
3,517 | 2,920 | 20.5% | Transportation | 9,641 | 7,510 | 28.4% |
170 | 212 | -19.5% | Logistic solution¹ | 543 | 478 | 13.5% |
65 | 45 | 45.3% | Other revenues² | 289 | 335 | -13.7% |
2,105 | 1,815 | 16.0%EBITDA | 3,530 | 4,443 | -20.5% | |
56.1% | 57.2% | -1.1 p.p.EBITDA margin (%) | 33.7% | 53.4% | -19.7 p.p. | |
109 | - | - | Non-recurring adjustments | 2,515 | - | - |
2,214 | 1,815 | 22.0% | Adjusted EBITDA | 6,045 | 4,443 | 36.1% |
59.0% | 57.2% | 1.9 p.p.Adjusted EBITDA margin (%) | 57.7% | 53.4% | 4.3 p.p. |
- Revenue from sugar transportation using other railways or road transportation.
- It includes revenue from the pass-through fee of other railways, and revenue from volumes contracted and not executed according to commercial agreements (take-or-pay), among others.
3Q24 | 3Q23 | Chg.% | Yield by Operation | 9M24 | 9M23 | Var.% |
North Operation | ||||||
160.3 | 133.7 | 19.9% | Yield (R$/000 RTK) | 161.5 | 127.6 | 26.6% |
80.6% | 78.0% | 2.6 p.p. | % Volume | 79.0% | 78.3% | 0.8 p.p. |
South Operation | ||||||
176.8 | 155.9 | 13.4% | Yield (R$/000 RTK) | 178.8 | 156.9 | 13.9% |
14.6% | 17.0% | -2.4 p.p. | % Volume | 15.9% | 16.9% | -1 p.p. |
Container Operation | ||||||
154.9 | 144.9 | 6.9% | Yield (R$/000 RTK) | 148.0 | 134.6 | 10.0% |
4.8% | 5.0% | -0.1 p.p. | % Volume | 5.1% | 4.8% | 0.2 p.p. |
Consolidated | ||||||
162.5 | 138.0 | 17.7% | Yield (R$/000 RTK) | 163.5 | 132.8 | 22.9% |
Earnings Release
3Q24
3. Results by Business Unit
Business Units
The business units (reportable segments) are organized as follows:
• | North Operation | Malha Norte, Malha Paulista and Malha Central |
• | South Operation | Malha Oeste and Malha Sul |
• | Container Operation | Container operations, including Brado Logística |
• Results by business unit | North Operation | South Operation | Container | Consolidated |
3Q24 | Operation | |||
Transported volume (million RTK) | 17,446 | 3,155 | 1,050 | 21,651 |
Net operating revenue | 3,016 | 565 | 171 | 3,752 |
Costs of services | (1,349) | (379) | (158) | (1,886) |
Gross profit | 1,667 | 186 | 12 | 1,866 |
Gross margin (%) | 55% | 33% | 7% | 50% |
Sales, general and administrative expenses | (124) | (21) | (14) | (158) |
Other operating revenue (expenses) & eq. pick-up | (7) | (164) | 5 | (166) |
Depreciation and amortization | 435 | 99 | 28 | 563 |
EBITDA | 1,972 | 101 | 32 | 2,105 |
EBITDA margin (%) | 65% | 18% | 19% | 56% |
Non-recurring adjustments¹ | - | 109 | - | 109 |
Adjusted EBITDA | 1,972 | 210 | 32 | 2,214 |
Adjusted EBITDA margin (%) | 65% | 37% | 19% | 59% |
Results by business unit | North Operation | South | Container | Consolidated |
9M24 | Operation | Operation | ||
Transported volume (million RTK) | 47,384 | 9,512 | 3,052 | 59,948 |
Net revenue | 8,266 | 1,730 | 476 | 10,473 |
Costs of services | (3,853) | (1,239) | (427) | (5,520) |
Gross profit | 4,413 | 491 | 49 | 4,953 |
Gross margin (%) | 53% | 28%. | 10% | 47%. |
Sales, general and administrative expenses | (362) | (66) | (48) | (476) |
Other operating revenue (expenses) & eq. pick-up | 128 | (2,817) | 3 | (2,686) |
Depreciation and amortization | 1,258 | 397 | 84 | 1,739 |
EBITDA | 5,438 | (1,995) | 88 | 3,530 |
EBITDA margin (%) | 66% | - | 18%. | 34% |
Non-recurring adjustments | (169) | 2,684 | - | 2,515 |
Adjusted EBITDA | 5,269 | 689 | 88 | 6,045 |
Adjusted EBITDA margin (%) | 64% | 40%. | 18%. | 58% |
Earnings Release
3Q24
North Operation
3Q24 | 3Q23 | Chg. % | Operational data | 9M24 | 9M23 | Chg. % |
17,446 | 16,508 | 5.7% | Total transported volume (millions RTK) | 47,384 | 45,151 | 4.9% |
15,310 | 14,868 | 3.0% | Agricultural products | 41,770 | 40,478 | 3.2% |
726 | 602 | 20.7% | Soybean | 17,503 | 17,341 | 0.9% |
2,673 | 2,677 | -0.2% | Soybean meal | 8,012 | 7,296 | 9.8% |
9,811 | 9,708 | 1.1% | Corn | 10,754 | 10,888 | -1.2% |
686 | 641 | 7.0% | Sugar | 1,766 | 1,373 | 28.6% |
1,415 | 1,240 | 14.1% | Fertilizers | 3,735 | 3,581 | 4.3% |
2,136 | 1,641 | 30.2% | Industrial products | 5,614 | 4,673 | 20.1% |
1,284 | 1,215 | 5.7% | Fuels | 3,621 | 3,112 | 16.4% |
852 | 425 | >100% | Industrials | 1,993 | 1,561 | 27.6% |
160.3 | 133.7 | 19.9% | Average transportation yield | 161.5 | 127.6 | 26.6% |
The transported volume in the North Operation reached 17.4 billion RTK in 3Q24, a growth of 6%. This increase reflects higher transported volumes in the agricultural portfolios of grains and fertilizers and, more notably, an increase in industrial volumes. The growth in the industrials portfolio was primarily due to the start of operations at Suzano's new pulp mill, for which Rumo provides rail logistics services.
3Q24 | 3Q23 | Chg. % | Financial data | 9M24 | 9M23 | Chg. % |
(Amounts in BRL mln) | ||||||
3,016 | 2,440 | 23.6% | Net revenue | 8,266 | 6,350 | 30.2% |
2,797 | 2,207 | 26.7% | Transportation | 7,652 | 5,759 | 32.9% |
170 | 212 | -19.5% | Logistic solution | 543 | 478 | 13.5% |
49 | 21 | >100% | Other revenues¹ | 72 | 112 | -36.0% |
(1,349) | (1,192) | 13.1% | Costs of services | (3,853) | (3,467) | 11.1% |
(575) | (517) | 11.2% | Variable costs | (1,609) | (1,550) | 3.8% |
(340) | (292) | 16.4% | Fixed costs | (989) | (830) | 19.1% |
(434) | (384) | 13.0% | Depreciation and amortization | (1,255) | (1,087) | 15.4% |
1,667 | 1,247 | 33.7% | Gross profit | 4,413 | 2,883 | 53.1% |
55.3% | 51.1% | 4.2 p.p. | Gross margin (%) | 53,4% | 45.4% | 8 p.p. |
(124) | (134) | -7.9% | Selling, general and administrative expenses | (362) | (314) | 15.0% |
(7) | 13 | <100% | Other op. revenue (expenses) and equity pick-up | 128 | 23 | >100% |
435 | 385 | 13.0% | Depreciation and amortization | 1,258 | 1,092 | 15.2% |
1,972 | 1,511 | 30.5% | EBITDA | 5,438 | 3,684 | 47.6% |
65.4% | 61.9% | 3.4 p.p. | EBITDA margin (%) | 65.8% | 58.0% | 7.8 p.p. |
- | - | - | Non-recurring adjustments² | (169) | - | - |
1,972 | 1,511 | 30.5% | Adjusted EBITDA | 5,269 | 3,684 | 43,1% |
65.4% | 61.9% | 3.4 p.p. | Adjusted EBITDA margin (%) | 63.7% | 58.0% | 5.7 p.p. |
- It includes revenue from the pass-through fee of other highways, and revenue from volumes contracted and not executed according to commercial agreements (take-or-pay) and volume refering to transshipment.
2 For better comparability, the result was adjusted for non-recurring effects, namely: (i) R$ 169 million | price adjustment related to the sale of Rumo's 80% equity interest in the T16 and T19 terminals in Santos.
The increase in yields and volumes drove a net revenue growth of 24% in 3Q24, totaling R$ 3,016 million. Variable costs in the North Operation rose by 11%, reflecting both the increased unit fuel costs and higher transported volumes. Fixed costs and general and administrative expenses, net of depreciation, increased by R$ 38 million, due to higher spending on personnel, maintenance, and operations at FIPS - the Internal Railway of the Port of Santos. Adjusted EBITDA reached R$ 1,1972 million, up 31% from the same period last year, with a margin of 65%.
Earnings Release
3Q24
South Operation
3Q24 | 3Q23 | Chg. % | Operational data | 9M24 | 9M23 | Chg. % |
3,155 | 3,600 | -12.4% Transported volume (million RTK) | 9,512 | 9,729 | -2.2% | |
2,800 | 2,850 | -1.8% | Agricultural products | 8,022 | 7,642 | 5.0% |
1,381 | 887 | 55.7% | Soybean | 4,436 | 3,459 | 28.3% |
224 | 205 | 9.0% | Soybean meal | 616 | 603 | 2.2% |
195 | 695 | -71.9% | Corn | 456 | 1,196 | -61.9% |
898 | 999 | -10.1% | Sugar | 2,129 | 1,956 | 8.8% |
102 | 64 | 58.9% | Fertilizers | 210 | 180 | 16.9% |
- | - | - | Other | 177 | 249 | -29.1% |
355 | 750 | -52.6% | Industrial products | 1,490 | 2,087 | -28.6% |
168 | 478 | -64.7% | Fuel | 821 | 1,221 | -32.7% |
187 | 272 | -31.4% | Industrial | 669 | 866 | -22.8% |
176.8 | 155.9 | 13.4% | Average transportation yield | 178.8 | 156.9 | 13.9% |
The South Operation transported 3.2 billion RTK in 3Q24, a decrease of 12%. The indefinite suspension of operations on the railway stretch denominated "Tronco Sul", due to extreme weather events in Rio Grande do Sul, has directly impacted the logistics flow of fuels and industrial products. Additionally, the agricultural product portfolio was affected by lower transported volumes of sugar.
3Q24 | 3Q23 | Chg. % | Financial data | 9M24 | 9M23 | Chg. % |
(Amounts in BRL mln) | ||||||
565 | 577 | -2.2% | Net operating revenue | 1,730 | 1,581 | 9.4% |
558 | 561 | -0.6% | Transportation | 1,700 | 1,527 | 11.4% |
7 | 16 | -55.5% | Other revenues¹ | 30 | 55 | -45.1% |
(379) | (422) | -10.2% | Cost of services | (1,239) | (1,225) | 1.2% |
(114) | (115) | -0.4% | Variable costs | (353) | (340) | 3.7% |
(165) | (156) | 5.9% | Fixed costs | (490) | (449) | 9.2% |
(99) | (151) | -34.3% | Depreciation and amortization | (397) | (437) | -9.2% |
186 | 155 | 19.8% | Gross profit | 491 | 356 | 37.8% |
33.0% | 26.9% | 6 p.p. | Gross margin (%) | 28.4% | 22.5% | 5.8 p.p. |
(21) | (25) | -16.8% | Selling, general and administrative expenses | (66) | (60) | 10.2% |
(164) | (27) | >100% | Other op. revenue (expenses) and equity pick-up | (2,817) | (60) | >100% |
99 | 152 | -34.3% | Depreciation and amortization | 397 | 437 | -9.2% |
101 | 255 | -60.5% | EBITDA | (1,995) | 673 | >100% |
17.8% | 44.2% | -2.6 p.p. | EBITDA margin (%) | - | 42.6% | -4.3 p.p. |
109 | - | - | Non-recurring adjustments | 2,684 | - | - |
210 | 255 | -17.8% | Adjusted EBITDA² | 689 | 673 | 2,3% |
37.1% | 44.2% | -7.1 p.p. | Adjusted EBITDA margin (%) | 39.8% | 42.6% | -2.8 p.p. |
¹ It includes revenue from volumes contracted and not executed according to commercial agreements (take-or-pay).
2For better comparability, the result was adjusted for non-recurring effects, specifically: 3Q24: EBITDA - (i) R$ 109 million | impairment provision in the
Malha Sul, with no cash flow effect. 2Q24: Adjusted EBITDA - (iI) R$2,575 million | provision for impairment at Malha Sul, with no cash flow impact.
The 13% increase in the average yield in the South Operation partially offset the volume decline in the quarter, with net revenue reaching R$ 565 million. Variable costs fluctuated with fuel price changes and transported volume. Fixed costs and general and administrative expenses, net of depreciation, rose by R$ 5 million compared to 3Q23. Depreciation and amortization expenses reached a new level following the impairment recorded in Malha Sul, totaling R$ 99 million for the quarter. Adjusted EBITDA reached R$ 210 million, with a margin of 37%. As a non- recurring item, the Company recorded a provision for impairment of R$ 109 million, with no cash effect.
Earnings Release
3Q24
Container Operations
3Q24 | 3Q23 | Chg. % | Operational data | 9M24 | 9M23 | Chg. % |
29,893 | 29,646 | 0.8% | Total volume (Containers '000) | 86,611 | 81.240 | 6.6% |
154.9 | 144.9 | 6.9% | Intermodal average yield (R$/000 RTK) | 148.0 | 134.6 | 10.0% |
1,050 | 1,049 | 0.1% | Total volume (millions RTK) | 3,052 | 2,794 | 9.2% |
In 3Q24, Brado's operations transported 29,893 containers, an increase of 1% compared to 3Q23. The wood and cotton segments were the primary drivers of this volume growth. Consequently, transported volume for the period reached 1,050 million RTK.
3Q24 | 3Q23 | Chg. % | Financial results | 9M24 | 9M23 | Chg. % |
(Amounts in BRL mln) | ||||||
171 | 158 | 8.2% | Net operating revenue | 476 | 391 | 21.8% |
163 | 152 | 7.2% | Transportation | 289 | 224 | 29.0% |
8 | 6 | 34.7% | Other revenues1 | 187 | 167 | 12.2% |
(158) | (123) | 28.6% | Cost of services | (427) | (341) | 25.4% |
(98) | (75) | 29.8% | Variable costs | (252) | (200) | 26.1% |
(33) | (22) | 46.1% | Fixed costs | (92) | (68) | 35.6% |
(28) | (26) | 10.1% | Depreciation and amortization | (84) | (73) | 13.9% |
12 | 35 | -64.1% | Gross profit | 49 | 50 | -2.5% |
7.3% | 22.0% | -14.7 p.p. | Gross margin (%) | 10.3% | 12.8% | -2.6 p.p. |
(14) | (13) | 5.7% | Seles, general and administrative expenses | (48) | (39) | 25.0% |
5 | (1) | <100% | Other op. revenues (expenses) and equity pick-up | 3 | 1 | >100% |
28 | 26 | 10.3% | Depreciation and amortization | 84 | 74 | 14.1% |
32 | 48 | -33.7% | EBITDA | 88 | 86 | 1.8% |
18.7% | 30.5% | -11.8 p.p. | EBITDA margin (%) | 18.4% | 22.0% | -3.6 p.p. |
¹ Included revenue from service units.
The growth in transported volume within higher-value portfolios boosted net revenue in the container operation, totaling R$ 171 million in 3Q24, an annual increase of 8%. Variable costs were R$ 98 million, with Brado's operations recording a unit contribution margin of R$ 70 per '000 RTK, slightly below the levels observed in recent quarters. Fixed costs and general administrative expenses amounted to R$ 47 million, representing an annual increase of R$ 11 million. Consequently, EBITDA for the third quarter reached R$ 32 million, with a margin of 19%.
Earnings Release
3Q24
4. Other Results
Breakdown of Costs of Services Rendered, General & Administrative Expenses
3Q24 | 3Q23 | Chg. % | Consolidated Costs and Expenses | 9M24 | 9M23 | Chg. % |
(Amounts in BRL mln) | ||||||
(2,044) | (1,910) | 7.0% | Consolidated costs, general and administrative | (5,996) | (5,446) | 10.0% |
(786) | (707) | 11.0% | Variable Costs | (2,214) | (2,089) | 6.0% |
(672) | (580) | 16.0% | Variable cost of rail transport | (1,863) | (1,745) | 7.0% |
(495) | (417) | 19.0% | Fuel and lubricants | (1,356) | (1,238) | 9.0% |
(178) | (163) | 9.0% | Other variable costs1 | (507) | (507) | - |
(114) | (126) | -10.0% | Variable cost Logistic Solution2 | (351) | (344) | 2.0% |
(695) | (641) | 8.0% | Fixed costs and general and administrative | (2,043) | (1,754) | 16.0% |
(268) | (252) | 7.0% | Payroll expenses | (781) | (718) | 10.0% |
(270) | (219) | 22.0% | Other operational costs3 | (789) | (628) | 25.0% |
(157) | (128) | 8.0% | General and administrative expenses | (472) | (407) | 16.0% |
(563) | (562) | - | Depreciation and Amortization | (1,739) | (1,603) | 8.0% |
1Costs, such as rental of rolling stock, electricity, roadside in the Container Operation, owned logistics costs, and take-or-pay. 2Freight costs with third parties include road and rail freight contracted with other concessionaires.
3Other operational costs include maintenance, third-party services, safety, and facilities, among other fixed costs.
In 3Q24, variable costs rose by 11%, primarily driven by higher unit fuel costs and increased transported volumes.
Fixed costs and general and administrative expenses grew by 8% in the quarter compared to the previous year. Consistent with prior quarters, this increase reflects Rumo's decision to strengthen structures and processes to support its growth strategy, enhance efficiency, and manage risks. During this period, there were higher costs and expenses related to personnel, maintenance, facilities, and technology.