Ferreycorp (FERREYC1) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered strong operational results with net profit of S/163 million, up 149% year-over-year, and ROE of 19.5%, driven by higher sales, robust gross margins, and favorable exchange rate effects.

• Board approved and paid an advance cash dividend of S/100 million (S/0.1064 per share) in August 2024.

• Year-to-date 2024 sales reached S/6,995 million, up 6% year-over-year, with operating profit and EBITDA also increasing.

• Business environment in Peru improved, with GDP growth estimated at 3.2% for 2024, up from -0.6% last year.

• Net income for the nine months was S/389 million, up 33% year-over-year; adjusted net income was S/396 million.

Financial highlights

• Consolidated sales for the nine months ended September 2024 reached S/5,614 million, up 12% year-over-year; Q3 sales were S/1,912 million, up 7% year-over-year.

• Gross margin for YTD 2024 was 26.8%, with Q3 gross margin at 26.2%.

• Operating profit for Q3 2024 was S/217 million, up 19% year-over-year, with an operating margin of 11.3%.

• EBITDA for Q3 2024 was S/283 million, up 16% year-over-year, with a margin of 14.8%.

• Free cash flow for Q3 2024 was negative at S/-138 million due to higher working capital.

Outlook and guidance

• Optimism for continued investment and growth, with expectations of ongoing demand from regional governments and small contractors.

• Cautious outlook for 2025 due to potential political uncertainty, with stronger activity expected in the first half.

• Plans to restructure a portion of short-term debt in Q4 2024.

• CapEx for the next couple of years expected to be in the range of S/50-60 million annually.

• Private investment remains subdued in 2024 due to low business confidence, despite projected GDP growth.