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Price Increase: Gate fee price increased by 9% year-on-year.
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Gross Margin: Increased by 8% year-on-year.
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Waste Volume: Increased by 4% year-on-year.
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Net Revenue: Grew by 16% compared to the previous period.
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EBITDA: Increased by 24% in Q4 2024 compared to Q4 2023.
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Full Year Revenue: Increased from BRL776,000 to BRL903,000.
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Full Year EBITDA: 30% higher than 2023.
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CapEx: Total CapEx related to maintenance was BRL30 million.
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Indebtedness: Slight increase, primarily related to biomethane projects.
Release Date: April 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Orizon Valorizacao De Residuos SA (BSP:ORVR3) reported a 9% increase in gate fee prices, surpassing inflation levels, which positively impacted their margins.
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The company achieved a 4% year-on-year increase in waste volume, indicating growth in their core operations.
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Investments in biomethane projects, such as Jaboatao and Paulinia, are on track and within budget, with significant production expected to commence in 2025.
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The circular economy segment showed improved results, with increased prices for recycled items and a ramp-up in sorting plant operations.
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Total net revenue grew by 16% compared to the previous period, driven by higher prices and increased revenue from biogas and biomethane.
Negative Points
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Energy generation experienced a slight reduction compared to the previous quarter, although not deemed structurally significant.
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The company faced increased SG&A expenses due to regulatory and M&A activities, impacting overall profitability.
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There was a noted increase in indebtedness levels, although the company maintains a long-term view on leverage.
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The company is dealing with provisions for receivables that are delayed by about two years, linked to previous management of acquired assets.
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Operational challenges in the circular economy segment persist, with the need for government involvement to make future recycling plants economically feasible.
Q & A Highlights
Q: Can we consider the SG&A level of the fourth quarter as a baseline for future expenses, especially with the development of methane projects? A: Leonardo Roberto Pereira Dos Santos, CFO, explained that the SG&A expenses included specific costs related to regulatory victories and M&A activities. These costs are not expected to be recurrent, although some will continue into 2025. The company is preparing for higher waste volumes, which may lead to structural changes reflected in future SG&A.