3Q20 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, hereby presents its Q3 2020 results.


. In 3Q20 the quantity of vehicles transported was 161.8 thousand, a 185.6% rebound vs 2Q20 but a 20.9% decline in YoY comparison reflecting a 25.2% market share or a 0.7 p.p loss in YoY comparison. The quarter´s average distance was 1,174 km, 6.2% higher in annual comparison.

. In 3Q20 net revenues increased 122,2% vs 2Q20 because the economy reopening but it fell 15.1% in the YoY comparison due to the decrease of the quantity of vehicles transported in the automotive logistics division, reflecting the negative impact of the COVID-19 outbreak in Brazil.

. 3Q20 EBITDA was R$ 55.3 million, corresponding to a 19.1% margin, 0.2 p.p higher than the adjusted EBITDA 3Q19 despite the impacts of COVID-19 pandemic in the automotive logistics division, due to the management of costs and expenses, the resumption of vehicle sales in the country and the good performance of the integrated logistics division.

. 3Q20 net income was R$ 29.9 million, 67.2% lower in the YoY comparison bur only 17.0% lower than 3Q19 disregarding the impacts of a tax credit in 3Q19, despite the impacts of COVID-19, which were mitigated by the costs and expenses cutting in 2Q20 and by controlling them throughout 3Q20.

. In 3Q20, free cash flow was R$ 8.7 million negative, impacted mainly by working capital consumption due to the resumption of operations in the automotive logistics division, despite the Company’s positive operating result.

. 3Q20 return on invested capital was 17.4%, a drop of 4.2 p.p vs the 2Q20 ROIC (without the tax credit), mainly due to the effects of the COVID-19 pandemic.

. In September 2020, the Company had R$ 54.3 million net cash vs R$ 62.5 million net cash in June, 2020.

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