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Sequoia Logística e Transportes (SEQL3) investor relations material
Sequoia Logística e Transportes Q3 2024 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Major restructuring initiatives, including debt renegotiation, asset sales, and integration with Mobi3/Move3, aim for financial stabilization and operational efficiency by 2025.
Integration of Sequoia and Mobi3/Move3 progressing, with significant reduction in distribution centers and payroll, targeting a leaner, more profitable operation.
Sale of non-core asset Frenet and other non-strategic assets completed, providing over BRL 25 million in liquidity.
CEO transition underway, with Alexandre Rodriguez set to become CEO in February 2025.
Focus on operational optimization, cost reduction, and positive EBITDA generation by 2025.
Financial highlights
Normalized net revenue in 3Q24 reached R$250.1M, up 98.2% year-over-year; pro-forma 9M24 at R$769.7M.
Adjusted gross margin in 3Q24 was 20.7%, reversing a negative margin in 3Q23.
Adjusted EBITDA in 3Q24 was -R$17.5M, a significant improvement from -R$50.7M in 3Q23; 9M24 adjusted EBITDA was -R$45.0M, better than -R$92.4M in 9M23.
Net debt at end-September 2024 was R$380.2M, up 8.7% sequentially due to working capital needs.
Monthly rental and payroll costs reduced significantly through distribution center closures and headcount optimization.
Outlook and guidance
No formal 2025 guidance provided, but management expects restructuring and integration to be completed by year-end, enabling stronger performance and future guidance.
Focus remains on completing integration, rationalizing costs, and achieving positive EBITDA and operational cash generation in 2025.
Synergies from MOVE3 integration expected to further enhance results in upcoming quarters.
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