Q3 2024 Tegma Gestao Logistica SA Earnings Call Transcript
Key Points
- Tegma Gestao Logistica SA (BSP:TGMA3) announced a dividend payout of 60% of net income for the third quarter, reflecting a dividend yield of 10.7% over the last 12 months.
- The successful deployment of Oracle's ERP system marks a significant step in the company's digital transformation, enhancing process efficiency and customer experience.
- The company experienced a 46% increase in net revenue for the automotive logistics division, driven by a 19% rise in vehicles transported and a 2% increase in average distance traveled.
- Tegma's market share in the automotive logistics sector grew by 1 percentage point to 25.7% in the third quarter of 2024.
- The company's net income for the third quarter rose by 50% year on year, with a net margin expansion of 0.8 percentage points, attributed to improved operating results and equity income growth.
- The integrated logistics division saw only a 2% increase in net revenue year on year, hindered by lower than expected arrivals of ships carrying key chemicals.
- EBITDA margin for the integrated logistics division fell from 30.2% to 26.6% due to reduced volumes in the chemicals operation.
- Despite robust performance indicators, Tegma's share multiples remain below their historical average, indicating potential undervaluation.
- The company's working capital demands have increased significantly year on year, impacting cash flow and dividend payout decisions.
- Tegma does not provide specific revenue or CapEx guidance for 2025, which may leave investors seeking more clarity on future financial expectations.
Good afternoon. For those who need the simultaneous translation, you can press the globe icon on the lower right side of your zoom screen and then choose to enter in the English room after that select mute original audio.
Good afternoon. This is Yan speaking, your manager of Tegma. Welcome to the conference call for the earnings. Concerning the third quarter of 2024 this conference is being recorded and the replay may be accessed in the investor relations website with Tegma.
We informed that all participants will be in listen-only mode during the presentation after which we will have the question-and-answer session when further instructions will be provided for those listening in English. We have in the chat, the link to the presentation in English because we will be showing only the version in Portuguese here on some.
I would like to give the floor now to Nivaldo Tuba, Chief Executive Officer of the company who will begin the presentation. Nivaldo. You may proceed.
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