Ferreycorp (FERREYC1) Q1 2025 earnings summary

Executive summary

• Net sales reached S/. 1,974 million in 1Q'25, up 8% year-over-year, driven by strong Caterpillar machine and mining sector sales.

• EBITDA was S/. 268 million, down 5% year-over-year, with adjusted EBITDA up 5% to S/. 288 million.

• Net profit was S/. 143 million, up 24.6%, but FX effects led to an adjusted net profit of S/. 133 million.

• The sol appreciated 2.47% in 1Q'25, resulting in a S/. 35 million FX gain, distorting some profit lines.

Financial highlights

• Gross margin for 1Q'25 was 24.9%, down from 26.7% in 1Q'24; adjusted gross margin was 26.3%.

• Operating margin stood at 10.0%, compared to 11.4% in 1Q'24; adjusted operating profit rose 5% to S/. 217 million.

• EBITDA margin was 13.6%, down from 15.0% in 1Q'24; adjusted EBITDA margin was 14.6%.

• Net financial expenses were S/. 23 million, up 2% year-over-year, with financial expenses as a percentage of sales at 1.16%.

• Free cash flow was S/. 96 million, down from S/. 363 million in 1Q'24.

Outlook and guidance

• Focus on business sustainability, expanding value offerings, and leveraging technology and best practices.

• Continued development of new business lines with strategic fit and synergy potential.

• Asset turnover improved to 1.17, with inventory days reduced to 144 and collection days to 46.

• Plans to optimize asset use and maintain a balanced debt structure.