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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.
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Q3 2024 earnings summary6 Dec, 2024

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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