Ultrapar Participacoes SA (UGP) Q3 2024 Earnings Call Highlights: Navigating Challenges with ...

In This Article:

  • Recurring EBITDA: BRL1.506 billion in Q3 '24, 24% lower year-over-year.

  • Accumulated EBITDA for '24: BRL4.93 billion, 4% higher than the previous period.

  • Net Income: BRL698 million, 22% lower year-over-year; year-to-date net income is BRL1.645 billion, 17% higher than the previous period.

  • Investments: BRL519 million in Q3 '24, up 37% year-over-year.

  • Operating Cash Flow: BRL780 million in Q3 '24, 59% lower year-over-year.

  • Net Debt: BRL7.968 billion at the end of Q3 '24, an increase of BRL268 million from June '24.

  • Leverage: Increased from 1.2x in June '24 to 1.3x in September '24.

  • Ipiranga Sales Volume: 4% growth in Q3 '24 year-over-year.

  • Service Stations: 5,871 stations, a net decrease of 5 from June '24.

  • AMPM Stores: 1,478 stores with 7% same-store sales growth.

  • Ipiranga EBITDA: BRL967 million in Q3 '24; recurring EBITDA of BRL936 million, 34% lower year-over-year.

  • Ultragaz LPG Sales Volume: 4% higher year-over-year in Q3 '24.

  • Ultragaz EBITDA: BRL448 million in Q3 '24, 1% lower year-over-year.

  • Ultracargo Net Revenues: BRL266 million in Q3 '24, 1% higher year-over-year.

  • Ultracargo EBITDA: BRL168 million in Q3 '24, 3% lower year-over-year; EBITDA margin of 63%.

Release Date: November 14, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Ultrapar Participacoes SA (NYSE:UGP) reported a 4% increase in accumulated EBITDA for 2024 compared to the previous period, reaching BRL4.93 billion.

  • The company achieved a 17% increase in net income year-to-date, totaling BRL1.645 billion.

  • Ipiranga's sales volume grew by 4% in the third quarter, with a notable 5% increase in the auto cycle segment.

  • Ultragaz reported a 4% increase in LPG sales volume year-over-year, driven by a 7% increase in bulk LPG sales.

  • Ultracargo's net revenues increased by 1% in the third quarter, supported by better tariffs despite lower spot sales.

Negative Points

  • Recurring EBITDA for the third quarter was 24% lower year-over-year, primarily due to Ipiranga's lower EBITDA.

  • Net income for the third quarter was 22% lower compared to the same period last year, impacted by reduced EBITDA.

  • Operating cash flow generation decreased by 59% year-over-year, influenced by lower EBITDA and higher working capital investments.

  • Ultracargo's EBITDA decreased by 3% in the third quarter due to lower spot sales, with a 2 percentage point drop in EBITDA margin.

  • The company's net debt increased by BRL268 million from June to September 2024, partly due to dividend payments and reduced draft discount operations.

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