1Q22 Earnings Release

TEGMA GESTAO LOGISTICA S.A., one of the largest logistic providers in Brazil and one of the leaders in logistics for brand new vehicles in Brazil, hereby presents its Q1 2022 results.


. The quantity of vehicles transported in 1Q22 was 116,700, a 15.0% reduction compared to 1Q21, a 23.8% market share or 0.9 p.p. higher vs 1Q21 due to a more favorable customer mix. The average distance in 1Q22 was 978 km, 6.7% lower than in 1Q21 due to the increase of shorter export trips.
. Net revenue was 3.1% higher in 1Q22 compared to 1Q21, positively impacted by Integrated Logistics despite the stability of the Automotive Division, even with the difficulties faced by the latter.
. Consolidated gross margin was 16.2% in 1Q22, 2.0 p.p. lower than the 1Q21 due to the reduction in transported vehicles and the stability of certain operating costs necessary to meet the volumes expected in subsequent quarters.
. EBITDA in 1Q22 was R$ 35.1 million, representing a 14.6% margin, 3.9 p.p lower in the annual comparison (-1.0 p.p disregarding non-recurring events), due to the lower than expected # of vehicles transported and distance traveled by the Automotive Division, despite of the performance improvement of the Integrated Logistics Division.
. Net income in 1Q22 was R$ 18.8 million, 6.8% lower than in 1Q21, reflecting the worsening of the automotive sector and its impacts in the Automotive Division and despite the improvement in the Integrated Logistics Division results, in equity and in financial result.
. Free cash flow in 1Q22 was positive by R$ 72.2 million, higher than the R$ 44.2 million in 1Q21 due to the release of working capital from the Automotive Division and to the settlement of part of overdue receivables in the same division.
. Return on invested capital in 1Q22 was 16.3%, 2.1 p.p lower than 4Q21, mainly due to the production difficulties faced by the automotive industry with the semiconductor crisis and the economic difficulties arising from high inflation in Brazil and in the world.
. Net cash in March 2022 was R$ 91.3 million versus R$ 18.2 million in December 2021, due to the release of working capital from the automotive operation and to the settlement of part of December 31 overdue receivables.