3Q23 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 3Q23 & 9M23 results:

. The # of vehicles transported in 3Q23 was 169.7 thousand, up 2.2% YoY, a 24.7% market share, 0.7 p.p lower than 3Q22, influenced by the uneven impact of the Brazilian government’s incentive program on the Company’s customer portfolio. The average distance in 3Q23 was 1,045 km, 1.4% higher YoY.
. Net revenue was 2.8% higher in 3Q23 YoY, mainly because of the higher # of vehicles transported and average distance traveled in the Automotive Logistics Division.
. The 3Q23 gross margin was 21.4%, down 1.6 p.p. YoY, negatively influenced by the lower revenue of the automotive logistics services and the realignment of Diesel prices in the Automotive Logistics Division, in addition to lower revenue from Logistics Integrated.
. EBITDA in 3Q23 was R$ 79.3 million (18.6% margin, 2.6 p.p lower vs the 3Q22 Adjusted EBITDA), a consequence of the reduction in the Automotive Division’s gross margin, the increase of expenses (ex 3Q22 non-recurring) and the decrease in revenue from Integrated Logistics, incurring in lower cost dilution
. Net income was R$ 56.3 million in 3Q23, 5.3% higher YoY (13.2% margin, up 0.3 p.p. vs 3Q22). The slight evolution stems mainly from the better financial result in the period and the growth of the GDL Joint Venture’s results, as well as the Company’s operational results.
. 3Q23 Free cash flow was R$ 49.7 million positive, mainly explained by the Company’s positive operational result, combined with the reduction in cash-to-cash cycle in the period, as well as the use of tax credits.
. The 3Q23 return on invested capital was 28.7%, slightly lower QoQ, mainly explained by lower margins in the Automotive Division in 3Q23 YoY and the performance of the Integrated Logistics Division in 2023, falling short in terms of revenue and margins in 2023.
. Net cash in September 2023 was R$162.8 million vs R$145.8 million in June 2023, influenced by the operating result and the lower cash-to-cash cycle.

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Tuesday, November 7th, 2023 | 1:00 pm (EST)

Click here to view the 3Q23 earnings presentation.