Q4 2024 Tupy SA Earnings Call Transcript
Key Points
- Tupy SA (BSP:TUPY3) achieved the highest EBITDA in the company's history despite a sharp drop in physical sales volumes.
- The company implemented cost and expense reduction initiatives, contributing to improved operating margins.
- Significant acquisitions, such as MWM, accounted for 40% of revenue and contributed to a more diversified product mix with greater added value.
- Operational efficiency initiatives are expected to generate significant annual savings in fixed and variable costs.
- Tupy SA (BSP:TUPY3) continues to invest in R&D and innovation, focusing on new technologies like biofuel-powered engines, which are expected to drive future value creation.
- Revenues fell by 5% compared to the same period of the previous year, impacted by lower demand in foreign markets.
- The company faced a 6% reduction in the cost of goods sold, but this was accompanied by inflationary pressures on labor and services.
- Operating expenses increased by 7% due to higher freight costs and logistical bottlenecks.
- The net profit was impacted by an impairment of 250 million, resulting in a loss of 98 million in the quarter.
- Financial expenses increased due to new borrowings and the depreciation of the Brazilian real against the dollar.
Good morning ladies and gentlemen. Welcome to the earnings conference call of the PSA for the 4th quarter of 2024. This conference is being recorded and the replay can be accessed at on the company's website at RI.2.com.br.
The presentation is also available for download on the investor relations platform and website. Please be advised that all participants will be in listen-only mode during the presentation, and later we'll begin a Q&A session when further instructions will be given. This presentation is being recorded and translated simultaneously. Translation is available by clicking on the interpretation button.
For those listening to the video conference in English, there is the option to mute the original Portuguese audio by clicking on mute original audio. Before proceeding, I would like to reinforce that forward-looking statements are based on the beliefs and assumptions of Tuppe's management.
And on information currently available to the company, such statements may involve risks and uncertainties as they refer to future events and therefore depend on circumstances
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