Santos Brasil's net profit reaches R$171,7 million in the second quarter

The excellent operational performance presented by Santos Brasil in the second quarter of this year (2Q24) drove the growth of the Company's economic and financial indicators, which recorded a net profit of R$ 171,7 million (+81,9% YoY), with a net margin of 24% (+5,8 pp YoY). Ebitda (recurring) totaled R$ 348,3 million (+56,7% YoY), with a gain of 5,7 pp in the Ebitda margin (49,6%), and consolidated Net Revenue reached R$ 702,8 million (+38,6% YoY). In the semester, Net Revenue was R$1,3 billion, an increase of 44,3% compared to the first half of 2023.

Santos Brasil container terminals handled 369.401 units – 23,4% more than in the same period last year (YoY), with higher long-haul volumes (+23,0% YoY), which accounted for 79,0 % of total movement in the period (vs. 79,3% in 2Q23), reflecting higher imports (+36,1% YoY) and exports (+25,8% YoY). Cabotage also grew 25,2% more than the same period in 2023.

The volume growth was accompanied by a significant improvement in the operational mix of full containers, which represented 75,1% of the total handled (vs. 68,8% in 2Q23), with imports growing 35,1% YoY.

Tecon Santos, the Company's main asset, handled 323.983 containers (+24,4% YoY), an increase of 33,8% YoY in the long haul. The highlights were the largest exports of coffee, sugar, cotton and frozen meat and the growth in imports of chemicals, capital goods, plastics and consumer goods. Cabotage, in turn, showed strong growth of 45,7% in the quarter, benefiting from the increase in transshipment at the Port of Santos, with the respective concentration in the Santos port system, also due to operational restrictions in ports located in the South region.

Proof of this growth is that in June Tecon Santos broke the record of 117 thousand containers moved in a single month, a mark already surpassed in July, with the record of 121,8 thousand units moved.

Tecon Imbituba (SC) handled 23.225 containers in 2Q24 (+58,9% YoY), benefiting from the new long-haul service that began operating at the terminal in February 2024. On the other hand, cabotage showed a 10% drop in quarter, due to lower shipments of packaged beverages and rice.

The movement of Tecon Vila do Conde (PA) totaled 22.193 containers (-8,4% YoY), reflecting the omission of six long-haul ships, which did not call at the terminal due to congestion in other ports in the country; and the drop in cabotage, resulting from fewer shipments in the region of influence of the Port of Vila do Conde.

Santos Brasil Logística showed growth of 16,6% YoY in the number of containers stored in the Logistics and Industrial Customs Centers (CLIAs Santos and Guarujá) in the quarter, due to the higher volume of imports at the Port of Santos. On the other hand, there was a 55,2% YoY reduction in pallet movement in Distribution Center operations, as a result of lower demand from customers in the automotive sector.

The TEV – Vehicle Terminal located in the port of Santos – continued to show a drop in volumes, mainly due to lower exports of light vehicles to Mercosur countries.

The Liquid Bulk Terminals in Itaqui (MA) saw growth of 2,8% YoY in the volume of fuel stored, with greater tank turnover and the conversion of spot contracts into long-term contracts.

Perspective

For Daniel Pedreira Dorea, Economic-Financial and Investor Relations Director at Santos Brasil, volumes should remain high in the second half of the year, when growth is expected, including due to the typical seasonality of the sector, which is concentrated between the months of July and October, to replenish stocks for end-of-year sales. The executive highlights that the Company's terminals are well sized to absorb market growth, especially in the Port of Santos. "In 2024 alone, we should invest something between R$720 and R$800 million in our assets, of which just over R$400 million in Tecon Santos alone, whose capacity will increase from the current 2.4 million TEUs to 2.6 million in 2025 and, from then on, 3 million TEUs in 2026. In this asset alone, we have already invested more than R$1.2 billion in the last five years, guaranteeing capacity for the Port of Santos and a high level of services for our customers".

In parallel, as part of Santos Brasil's capital allocation strategy, R$304 million was allocated to the distribution of profits to the Company's shareholders, equivalent to R$0,35 per share and a payout of 100% on profit distributable net for the 1st half of 2024. In fact, the Company's Management proposed to shareholders a capital reduction in the amount of R$ 1,6 billion, which will be resolved at an Extraordinary General Meeting to be held on August 14th.