In This Article:
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Net Recurring Income: BRL 7.2 billion, a growth of 30% compared to the previous year.
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Return on Equity (ROI): 17.5%, a growth of 2.6 percentage points from the previous semester.
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Patrimony: Almost BRL 84 billion.
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Market Value of Assets: BRL 128 billion, a 12% year-on-year growth.
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Itau Unibanco Net Revenue: BRL 20 billion, a 25% growth year-on-year.
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Alpargatas Net Income: BRL 63 million.
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Dexco Net Revenue: BRL 153 million, a 23% drop year-on-year.
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CCR Net Revenue: BRL 859 million, a 65% growth year-on-year.
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IGI Net Revenue: BRL 130 million.
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Copper Energy Revenue: BRL 251 million, a 7% drop year-on-year.
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Recurring Net Revenue: BRL 7.220 billion, a 30% growth year-on-year.
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Financial Expenses Reduction: 65% improvement, with financial results closing at BRL 118 million.
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Net Debt: Less than BRL 1 billion.
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Dividend Yield: 8.6%.
Release Date: August 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Itausa Investimentos ITAU SA (BSP:ITSA3) reported record results for the first semester of 2024, with a net recurring income of BRL7.2 billion, marking a 30% growth compared to the previous year.
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The company achieved a return on equity (ROI) of 17.5%, reflecting a 2.6-percentage-point increase from the previous semester.
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Itausa's shares outperformed the Ibovespa index, with a 70% increase over the past 12 months compared to the index's 5% growth.
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The company successfully reduced its financial expenses by 65% through strategic liability management, including debt prepayment and refinancing.
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Itausa's portfolio companies, such as Itau Unibanco and CCR, reported strong operational performances, contributing significantly to the holding's overall results.
Negative Points
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The high interest rate environment in Brazil, currently over 10.5%, poses challenges for growth and impacts leveraged companies within Itausa's portfolio.
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Despite strong results, Itausa's shares are still traded at a significant discount, which the management considers exaggerated.
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The fiscal deficit in Brazil continues to grow, necessitating high interest rates that hinder economic growth and investment opportunities.
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Itausa faces fiscal inefficiencies related to PIS/COFINS taxes, which result in an annual expense of over BRL500 million.
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The challenging geopolitical and economic environment, both domestically and internationally, adds uncertainty to Itausa's future growth prospects.
Q & A Highlights
Q: With the net debt close to BRL1 billion, is Itausa considering a new cycle of investment, or is it too early? A: Alfredo Setubal, CEO, explained that due to high interest rates, Itausa is cautious about new investments. The company continues to explore M&A opportunities but finds it challenging to identify assets offering a nominal return of around 16%. Therefore, a significant investment cycle is not anticipated unless conditions change.