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SABESP(SBS) - 2024 Q3 - Quarterly Report
SBSSABESP(SBS)2024-09-28 00:12
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Financial Performance - SABESP reported net operating revenue of R6,749.4millionin2Q24,anincreaseof9.7 6,749.4 million in 2Q24, an increase of 9.7% compared to R 6,154.5 million in 2Q23[12]. - Adjusted EBITDA totaled R2,970.5millionin2Q24,upbyR 2,970.5 million in 2Q24, up by R 778.1 million (+35.5%) from R2,192.4millionin2Q23,withanadjustedEBITDAmarginof54.2 2,192.4 million in 2Q23, with an adjusted EBITDA margin of 54.2%[14]. - Net income for 2Q24 reached R 1,209.4 million, reflecting a significant increase of 62.6% from R743.7millionin2Q23[14].−Thecompanyexperiencedasignificantincreaseinearningsbeforeincometaxandsocialcontribution,reachingR 743.7 million in 2Q23[14]. - The company experienced a significant increase in earnings before income tax and social contribution, reaching R 1,754.6 million in 2Q24, up by 66.0% from R1,056.8millionin2Q23[20].−Adjustednetincome(excludingIDP/AAPS)wasR 1,056.8 million in 2Q23[20]. - Adjusted net income (excluding IDP/AAPS) was R 1,209.4 million in Q2 2024, down 5.0% from R1,273.3millioninQ22023[21].−Netincomefortheperiodin2Q24wasR 1,273.3 million in Q2 2023[21]. - Net income for the period in 2Q24 was R 1,209,465 thousand, an increase of 62.5% from R743,743thousandin2Q23[63].RevenueBreakdown−RevenuefromsanitationservicesincreasedbyR 743,743 thousand in 2Q23[63]. Revenue Breakdown - Revenue from sanitation services increased by R 740.6 million (+14.3%) in 2Q24, driven by tariff adjustments and a 3.2% increase in total billed volume[15]. - SABESP's revenue from construction services was R1,273.8millionin2Q24,aslightincreaseof0.8 1,273.8 million in 2Q24, a slight increase of 0.8% from R 1,263.2 million in 2Q23[20]. - Water revenue for 2Q24 was R3,142,900thousand,upfromR 3,142,900 thousand, up from R 2,749,015 thousand in 2Q23, representing an increase of 14.3%[60]. - Sewage revenue for 2Q24 reached R2,752,827thousand,comparedtoR 2,752,827 thousand, compared to R 2,417,527 thousand in 2Q23, marking a growth of 13.9%[60]. - Net sanitation services revenue for 2Q24 was R5,475,645thousand,upfromR 5,475,645 thousand, up from R 4,891,303 thousand in 2Q23, marking an increase of 11.9%[73]. Cost Management - Costs and expenses decreased to R3,302.4millionin2Q24,downbyR 3,302.4 million in 2Q24, down by R 607.0 million (-15.5%) compared to R3,909.4millionin2Q23[19].−Thedecreaseinsalaries,payrollcharges,andbenefitswasR 3,909.4 million in 2Q23[19]. - The decrease in salaries, payroll charges, and benefits was R 598.7 million (-44.4%) in 2Q24, primarily due to a non-recurring provision for the Incentivized Dismissal Program (IDP) recognized in 2Q23[32]. - Treatment supplies fell by R14.2million(−10.3 14.2 million (-10.3%) in 2Q24, attributed to strategies for chemical replacement and optimization of water usage[33]. - Service expenses increased by R 20.1 million (+3.1%) in 2Q24, mainly due to higher advertising and marketing expenses[35]. - General expenses rose by R17.9million(+4.5 17.9 million (+4.5%) in 2Q24, driven by higher provisions for municipal transfers[41]. Financial Position - SABESP's total market value as of August 8, 2024, was R 63.33 billion, with shares priced at R92.65onB3andUS 92.65 on B3 and US 16.32 on NYSE[11]. - The company’s total debt as of 2Q24 was R21.78billion,with44 21.78 billion, with 44% of the debt represented by debentures[54]. - Total current assets increased to R 9,761,148 thousand in 2Q24 from R6,262,207thousandin2Q23,reflectingagrowthof55.0 6,262,207 thousand in 2Q23, reflecting a growth of 55.0%[64]. - Total assets reached R 64,606,044 thousand in 2Q24, up from R57,453,621thousandin2Q23,indicatinganincreaseof12.5 57,453,621 thousand in 2Q23, indicating an increase of 12.5%[64]. - Total liabilities increased to R 32,808,955 thousand in 2Q24 from R28,706,060thousandin2Q23,reflectingariseof14.6 28,706,060 thousand in 2Q23, reflecting a rise of 14.6%[66]. - The company’s equity rose to R 31,797,089 thousand in 2Q24, compared to R28,747,561thousandin2Q23,markinganincreaseof7.1 28,747,561 thousand in 2Q23, marking an increase of 7.1%[66]. Investment Activities - Total investments in 2Q24 amounted to R 1,296.6 million, with R549.2millionallocatedtowaterandR 549.2 million allocated to water and R 747.4 million to sewage[56]. - In 1H24, total investments reached R2,717.0million,withR 2,717.0 million, with R 1,217.6 million in water and R1,499.4millioninsewage[57].−CashflowfrominvestingactivitiesshowedanetcashusedofR 1,499.4 million in sewage[57]. - Cash flow from investing activities showed a net cash used of R 1,602,505 thousand in 2Q24, compared to R723,812thousandin2Q23,indicatinganincreaseininvestmentactivities[71].OperationalEfficiency−NetcashgeneratedfromoperatingactivitiesreachedR 723,812 thousand in 2Q23, indicating an increase in investment activities[71]. Operational Efficiency - Net cash generated from operating activities reached R 3,164,172 thousand in 2Q24, up from R1,513,027thousandin2Q23,indicatingayear−over−yearincreaseof109.5 1,513,027 thousand in 2Q23, indicating a year-over-year increase of 109.5%[71]. - Cash and cash equivalents at the end of the year rose to R 2,809,311 thousand in 2Q24 compared to R1,867,485thousandin2Q23,reflectingasignificantincreaseof50.41,867,485 thousand in 2Q23, reflecting a significant increase of 50.4%[70]. - The company reported a decrease in the volume of measured water loss to 1.54% of water produced, down from 1.467%[52]. - The provision for doubtful accounts was262,163, down from 380,231,indicatingareductionincreditrisk[81].−Thecompanyreportedadecreaseintradeaccountsreceivableby380,231, indicating a reduction in credit risk[81]. - The company reported a decrease in trade accounts receivable by (143,148), which may suggest improved collection efforts[81].