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CCR SA (BSP:CCRO3) Q4 2024 Earnings Call Highlights: Strategic Expansion and Robust Financial ...

In This Article:

  • Road Network Expansion: Acquired Sorocabana Rota and Lot 3, adding nearly 900 kilometers, a 25% increase in the Roads portfolio.

  • OpEx to Adjusted Net Revenue Ratio: 40.2% on a recurring basis, with a target to reduce below 40% in 2025.

  • Energy Cost Reduction: 20% reduction through partnership with Neoenergia Group's wind farm.

  • Net Value Gains: BRL235 million from liability management operations.

  • Demand Growth: Roads up 1.1%, Mobility up 8%, Airports up 9% in passenger numbers.

  • EBITDA Growth: Roads up 6%, Mobility up 12%, Airports up 33%.

  • Consolidated Adjusted EBITDA: BRL2 billion, a growth of 5.2% in Q4 2024.

  • Adjusted Net Income: BRL360 million for the quarter.

  • CapEx: BRL7.3 billion in 2024, an 18% increase from 2023.

  • Leverage: Net debt to EBITDA ratio at 3.3x, within the target range of 2.5 to 3.5x.

  • Debt Duration: Increased from 5.4 years in December 2023 to 5.7 years in December 2024.

Release Date: February 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • CCR SA (BSP:CCRO3) achieved significant growth in EBITDA and adjusted EBITDA margin across all segments, with a consolidated adjusted EBITDA reaching BRL2 billion, a growth of 5.2% in the fourth quarter.

  • The company successfully acquired two premium assets, Sorocabana Rota in Sao Paulo and Lot 3 in Parana, adding nearly 900 kilometers to its road network, aligning with its strategy of profitable growth.

  • CCR SA (BSP:CCRO3) implemented a strong efficiency agenda, reducing headcount and optimizing energy costs, which is expected to lower the OpEx to adjusted net revenue ratio below 40% in 2025.

  • The company reported a robust capital structure with a leverage ratio of 3.3x net debt to EBITDA, within its target range of 2.5 to 3.5x.

  • CCR SA (BSP:CCRO3) demonstrated a commitment to sustainability by partnering with Neoenergia Group to reduce energy costs by 20% through a wind farm investment, contributing to its cost optimization strategy.

Negative Points

  • The company faced a deceleration in commercial traffic due to reduced grain transportation, impacting heavy vehicle growth.

  • Extraordinary one-off costs, including provisions for road animal accidents and demobilization expenses, affected the financial results for the quarter.

  • There was a slight increase in concession fees due to increased demand, contributing to higher variable costs.

  • CCR SA (BSP:CCRO3) experienced delays in CapEx execution, with BRL1.3 billion postponed to 2025, particularly affecting investments in Lines 8 and 9 of the Sao Paulo Metro.

  • The macroeconomic scenario, including high interest rates, poses challenges for asset recycling and investment selectivity, requiring cautious capital allocation.