Marcopolo SA (BSP:POMO3) Q2 2024 Earnings Call Highlights: Strong Revenue Growth and Strategic ...

In This Article:

  • Net Revenue Growth: 43% increase quarter-on-quarter.

  • EBITDA: BRL 382 million with a margin of 19.5%.

  • Gross Margin: 26.1%.

  • Net Income: BRL 250 million, a 79% increase from the previous year.

  • Return on Invested Capital: 20.6% for the quarter.

  • Brazilian Bus Production: Increased from 2,000 to 3,100 units in the second quarter.

  • International Revenue Growth: 25% increase in revenue from international operations.

  • Total Net Revenue: BRL 1.956 billion for Q2 2024.

  • Half-Year Revenue: BRL 3.6 billion, a 20% increase from the first half of 2023.

  • Net Margin: 15.7% for the half-year.

Release Date: August 02, 2024

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

Positive Points

  • Marcopolo SA (BSP:POMO3) reported a 43% growth in net revenue quarter on quarter, driven by a significant volume of microbuses.

  • The company achieved an EBITDA of BRL382 million with a gross margin of 26.1%, indicating strong operational leverage.

  • International operations contributed significantly to profitability, with a 25% increase in revenue from these operations.

  • The company is making strategic investments in electric buses and chassis, preparing for future demand in urban electric vehicle renewal.

  • Marcopolo SA (BSP:POMO3) is celebrating its 75th anniversary with new product launches, showcasing its commitment to innovation and market leadership.

Negative Points

  • The Brazilian bus production levels remain below historical averages, indicating a challenging domestic market environment.

  • Exports in the second quarter were below last year's levels, with no major projects contributing to international sales.

  • The company faces challenges in maintaining fleet renewal rates, with current production not meeting historical averages necessary for fleet age maintenance.

  • There is a delay in the bus-to-school program, affecting the expected volume distribution and impacting planning.

  • The volatility in exchange rates poses challenges in negotiating commodity prices, potentially affecting cost structures.

Q & A Highlights

Q: Can you quantify the expected margin increase from efficiency gains for next year? Also, how much investment is still needed to complete the Sao Mateus plant? A: We anticipate a potential margin improvement of 4% to 5% through enhanced efficiency, particularly in labor and material costs. Regarding Sao Mateus, 60% of the investments are still pending. The plant is being prepared for increased demand, especially for electric buses and chassis, with a capacity of producing five to six electric buses per day.