Release Date: August 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- JSL SA (BSP:JSLG3, Financial) reported a 16.5% increase in net revenue compared to the same period last year, reaching BRL2.1 billion.
- The company achieved an adjusted EBITDA of BRL398 million, with a margin of 19.2%, indicating strong operational performance.
- JSL SA's recent acquisition, FSJ, continues to grow at an accelerated pace of 40% year-on-year, benefiting from the JSL ecosystem.
- The company has been recognized and awarded by major clients, including General Motors, for its excellence in logistics operations.
- JSL SA has a strong cash position and has successfully reduced its average cost of debt by 2.5 percentage points compared to the previous year.
Negative Points
- The second quarter was impacted by a concentration of large project deployments, which pressured the quarter's results.
- IC, one of JSL's acquisitions, faced challenges with contract adjustments and margin improvements, leading to a 30% reduction in revenues.
- The company experienced lower volumes with OEMs and international segments, affecting revenues in April and May.
- JSL SA's leverage reached 3.04 times, which is considered the peak for 2024, indicating a need for further deleveraging.
- The company faced upfront costs related to new contract deployments, impacting short-term profitability.
Q & A Highlights
Q: Can you provide more details on the deployment of new contracts and expectations for the second half of the year?
A: Ramon Peres Martinez Garcia de Alcaraz, CEO, explained that deployments follow a typical flow involving upfront costs for equipment and personnel. The second quarter saw a higher concentration of large projects, impacting results. However, these deployments are expected to contribute positively in the coming quarters. Most CapEx has been invested, with some remaining for the second half, focusing on leveraging existing investments and deleveraging the company.
Q: What should we expect in terms of additional revenues from the CapEx made in the third quarter?
A: Guilherme de Andrade Fonseca Sampaio, CFO, noted that additional revenues will come from new contracts and increased volumes from existing contracts. The second quarter was impacted by specific issues like OEM production cuts, but June and July showed improvement. The company expects continued revenue growth from new and existing contracts.
Q: Are there plans to expand into other sectors like pharmaceuticals or fuel distribution?
A: Ramon Peres Martinez Garcia de Alcaraz, CEO, stated that JSL is already present in many sectors and sees opportunities in pharmaceuticals and fuel distribution. The company is exploring growth in these areas, leveraging its scale and expertise to capture market opportunities.
Q: What is the impact of the recent CRA operation on financial expenses?
A: Guilherme de Andrade Fonseca Sampaio, CFO, explained that the CRA operation reduced the average cost of debt, resulting in a quarterly impact of approximately BRL10 million in savings. This adjustment is part of the company's strategy to manage debt efficiently.
Q: Can you elaborate on the new contract in Ghana and expectations for international operations?
A: Ramon Peres Martinez Garcia de Alcaraz, CEO, highlighted that the Ghana contract aligns with JSL's strategy for international growth with guaranteed long-term contracts. The company is strategically positioned in Africa, with potential for further expansion in the region.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
