Kepler Weber closes third quarter of 2024 with falling profitability

Kepler Weber ended the third quarter of 2024 with an 8,2% growth in net revenue, totaling R$439,1 million. Year-to-date, revenue reached R$1,1 billion, which represents an increase of 13,6% compared to the first nine months of 2023. However, adjusted net income for the quarter had a slight drop of 0,5%, recording R$61,2 million.

The company's adjusted EBITDA also showed growth, totaling R$97,6 million in the quarter, with a margin of 22,2%. In the same period of 2023, EBITDA was R$80,7 million, with a margin of 19,9%. Year-to-date, adjusted EBITDA is R$252,5 million, an increase of 20,9% compared to last year.

Featured Segments

Farms: The segment, aimed at rural producers, recorded the best performance of the year, with revenue of R$141,8 million in the quarter. In the accumulated total for 2024, revenue from this sector is R$377,3 million, an increase of 12,4% compared to the previous year. Between July and September, the company closed important sales totaling approximately R$72,1 million, serving large producers in the states of Rio Grande do Sul, Bahia, Rondônia, Minas Gerais and Pará.

Agroindustries: The segment's revenue grew 1,6% in the quarter, reaching R$156,6 million. In 2024, the amount reached R$360,9 million, representing an increase of 3,2% compared to 2023. The company highlights the recovery of agribusinesses in the southern region, which have started investing again after periods of difficulties due to water shortages.

International Business: the area had its best third quarter in the last four years, with revenue of R$51,2 million, an increase of 63,6% compared to 2023. In the year to date, the segment records R$121 million, an increase of 53,1%. This performance was driven by the strengthening in consolidated markets and expansion in new territories, such as Central America and Asia.

Ports and terminals: the segment registered significant growth, with revenue of R$17,4 million in the quarter, five times higher than the value for the same period in 2023. Year-to-date, revenue is R$101,4 million, growth of 61,1%. Kepler Weber attributes the result to the implementation of three projects in the Matopiba region, focused on grains and fertilizers.

Replacement and services: Revenue from the replacement and services area was R$72,1 million in the quarter, an increase of 1,1% compared to the same period last year. In 2024, the amount reached R$186,6 million, an increase of 2,2% compared to the previous year. The company highlighted the introduction of new products, such as the KW Biocav chip feeding system.

Perspectives and investments

Kepler Weber's cash position ended the quarter at R$457,9 million. This result allowed the company to continue investing in fixed capital (Capex), research and development, in addition to distributing interim dividends of R$30 million and interest on equity of R$15,4 million to shareholders.

CEO Bernardo Nogueira highlighted that the diversification of segments has been showing increasingly positive results, especially in international business. In July, the company achieved a record in sales abroad, totaling R$43 million. According to the executive, all business areas showed growth compared to 2023, the second best year in the company's history.

The average liquidity of Kepler Weber shares in September 2024 was R$10,3 million. Although there has been an 8,9% depreciation since December 2023, the company has remained resilient amid market fluctuations, outperforming the Small Cap index, which registered a 13,7% depreciation in the same period.