Ferreycorp (FERREYC1) Q4 2024 earnings summary

Executive summary

• Achieved record annual sales of S/. 7,590 million (US$2,014 million) in 2024, with year-over-year growth driven by mining equipment, spare parts, and services.

• Operating profit rose 22% to S/. 855 million, and EBITDA increased 19% to S/. 1,131 million, with EBITDA margin at 14.9%.

• Net income reached S/. 489 million, up 12.7% year-over-year; adjusted net income was S/. 512 million.

• Gross margin improved to 26.3% in 2024.

• Fourth quarter net income was S/. 100 million, down 29.5% from 4Q23 due to exchange rate losses.

Financial highlights

• Sales for 4Q'24 were S/. 1,975 million, a slight decrease of 1.4% in soles from 4Q'23, due to sales advanced to earlier quarters.

• Gross profit for 2024 was S/. 1,996 million, up 10% year-over-year.

• Operating margin improved to 11.3% in 2024.

• Net financial expenses increased 12.5% to S/. 88 million.

• Return on equity (ROE) for 4Q24 was 17.5%, with adjusted ROE at 18.2%.

Outlook and guidance

• Mining and construction GDP expected to grow 3.1% and 3.3% respectively in 2025.

• Public and private investment projected to increase in 2025, supporting sector growth.

• Management does not expect significant variations between unaudited and audited results.

• Inventory and collection days improved, supporting better asset turnover and cash cycle efficiency.