Release Date: February 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- CCR SA (BSP:CCRO3, Financial) achieved significant growth in EBITDA and adjusted EBITDA margin across all segments, with a consolidated adjusted EBITDA reaching BRL2 billion, a growth of 5.2% in the fourth quarter.
- The company successfully acquired two premium assets, Sorocabana Rota in Sao Paulo and Lot 3 in Parana, adding nearly 900 kilometers to its road network, aligning with its strategy of profitable growth.
- CCR SA (BSP:CCRO3) implemented a strong efficiency agenda, reducing headcount and optimizing energy costs, which is expected to lower the OpEx to adjusted net revenue ratio below 40% in 2025.
- The company reported a robust capital structure with a leverage ratio of 3.3x net debt to EBITDA, within its target range of 2.5 to 3.5x.
- CCR SA (BSP:CCRO3) demonstrated a commitment to sustainability by partnering with Neoenergia Group to reduce energy costs by 20% through a wind farm investment, contributing to its cost optimization strategy.
Negative Points
- The company faced a deceleration in commercial traffic due to reduced grain transportation, impacting heavy vehicle growth.
- Extraordinary one-off costs, including provisions for road animal accidents and demobilization expenses, affected the financial results for the quarter.
- There was a slight increase in concession fees due to increased demand, contributing to higher variable costs.
- CCR SA (BSP:CCRO3) experienced delays in CapEx execution, with BRL1.3 billion postponed to 2025, particularly affecting investments in Lines 8 and 9 of the Sao Paulo Metro.
- The macroeconomic scenario, including high interest rates, poses challenges for asset recycling and investment selectivity, requiring cautious capital allocation.
Q & A Highlights
Q: Can you provide insights on your CapEx guidance for 2025, considering historical execution rates?
A: Miguel Setas, CEO, explained that CCR aims for a physical execution rate close to 95% in 2025, potentially higher than 2024. Financial execution tends to lag due to disbursements, such as those in airports, which will occur in 2025 after improvements made in 2024.
Q: What is the strategy for capital recycling, particularly in airports?
A: Miguel Setas, CEO, stated that CCR aims to derisk its airport platform, considering consolidation opportunities in a fragmented market. The company is not in a hurry and will proceed without urgency, focusing on maximizing value.
Q: How does the macroeconomic scenario affect CCR's investment strategy?
A: Miguel Setas, CEO, emphasized that CCR remains selective and disciplined in its investment approach, ensuring a spread above capital costs. The company conducts rigorous risk analysis and maintains a cautious stance in capital allocation.
Q: What are the expectations for traffic growth in 2025?
A: Waldo Perez, CFO, noted that road traffic growth is expected to align with GDP growth, slightly above 2%. The year started positively, and agribusiness is anticipated to perform well, contributing to traffic growth.
Q: How will CCR manage its leverage in light of new concessions and CapEx?
A: Waldo Perez, CFO, explained that despite new concessions, CCR's investments will remain compatible with its leverage strategy, maintaining a net debt to EBITDA ratio between 2.5x and 3.5x. The company expects positive impacts from new concessions and reduced investments in certain areas.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
