Ultrapar (UGPA3) Q3 2024 earnings summary

Executive summary

• Recurring EBITDA for 3Q24 was R$1.506 billion, down 24% year-over-year, mainly due to lower Ipiranga results.

• Net income for 3Q24 was R$698 million, 22% lower year-over-year, reflecting lower EBITDA but improved financial results.

• Accumulated net income for 2024 is R$1.645 billion, up 17% from the previous period.

• Operating cash flow for 3Q24 was R$780 million, down 59% year-over-year, impacted by lower EBITDA and higher working capital needs.

• Key events included the acquisition of a 51.7% stake in Witzler, receipt of R$222 million from the Extrafarma sale, and new debt issuances.

Financial highlights

• Net revenue reached R$35.4 billion in 3Q24, up 9% year-over-year.

• Accumulated 2024 EBITDA is R$4.093 billion, 4% higher year-over-year.

• CAPEX in 3Q24 totaled R$519 million, up 37% year-over-year, mainly due to higher investments in Ipiranga.

• Net debt at the end of 3Q24 was R$8.0 billion, up from R$7.7 billion in June 2024.

• Net debt/Adjusted LTM EBITDA was 1.3x at 3Q24.

Outlook and guidance

• Expectation to maintain profitability above R$130 per cubic meter at Ipiranga in 4Q24, with stable margins and improved market conditions.

• Ultragaz anticipates higher EBITDA in 4Q24, driven by new energy initiatives despite seasonally lower volumes.

• Ultracargo expects EBITDA in 4Q24 to be similar to recent quarters.

• Focus remains on operational efficiency, portfolio expansion, and disciplined capital allocation.

• Management notes ongoing risks and uncertainties, with forward-looking statements subject to change.