Q3 2024 Companhia de Saneamento de Minas Gerais COPASA MG Earnings Call (English, Portuguese) Transcript
Key Points
- Net revenue increased by 9.6% compared to the same period in 2023, reaching BRL1.8 billion.
- EBITDA grew by 13.6% compared to the third quarter of 2023, with an adjusted margin of 40.5%.
- The company invested 82% of the forecasted value for 2024, showing a 30.7% increase compared to 2023.
- COPASA MG's debt ratings have been positively revised by Fitch and Moody's, indicating strong financial health.
- The company has successfully negotiated contract addendums with several municipalities, representing 5% of its revenue, to mitigate future regulatory risks.
- Provision for doubtful accounts increased by 65.6% compared to the previous period, indicating challenges in debt recovery.
- Non-manageable costs rose by 15%, driven by increased electricity and fuel expenses.
- Net debt increased significantly from BRL3.4 million in September 2023 to BRL5.2 million in September 2024.
- The company faces challenges in renewing concessions with municipalities, with 40 concessions considered null, representing 4.8% of revenue.
- Delinquency rates remain a concern, with the company aiming to reduce them further despite being at the lowest level in seven years.
Good morning, ladies and gentlemen, and welcome to the COPASA MG conference call to release results for the third-quarter 2024. This conference call is being recorded, and the replay can be accessed at the company's site at ri.copasa.com.br. The presentation is available for download on the platform. (Operator Instructions) We inform you that the presentation is being recorded and translated simultaneously. The translation is available by clicking on the translation button, you can also mute the original audio.
Before we proceed, please bear in mind that the forward-looking statements are based on the beliefs and assumptions of the COPASA management and on information currently available to the company. These forward-looking statements may involve risks and uncertainties as they refer to future events and therefore depend on circumstances that may or may not occur. Investors, analysts and journalists should bear in mind events related to the macroeconomic environment of segment and other factors that could lead results to differ materially from those expressed in the forward-looking statements.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
