Ultra(US:UGP)2025-04-23 00:08Revenue Growth - Ultrapar's net revenues from sales and services increased by 6% to R$133,498.9 million in 2024, up from R$126,048.7 million in 2023, primarily driven by higher revenues from Ipiranga and Ultragaz[558]. - Ipiranga's net revenues reached R$121,336.2 million in 2024, a 6% increase from R$114,551.8 million in 2023, attributed to fuel cost pass-through and higher sales volumes[559]. - Ultragaz's net revenues rose to R$11,288.4 million in 2024, reflecting a 6% increase compared to R$10,670.8 million in 2023, due to LPG cost increases and higher sales volumes[560]. - Ultracargo's net revenues increased by 6% to R$1,075.6 million in 2024, up from R$1,015.6 million in 2023, driven by higher m³ sold[561]. Cost of Goods Sold - Ultrapar's costs of products sold and services provided rose by 6% to R$123,811.9 million in 2024, compared to R$116,730.5 million in 2023, due to increased costs at Ipiranga and Ultragaz[561]. - Ipiranga's costs of products sold were R$114,730.5 million in 2024, a 6% increase from R$108,074.3 million in 2023, driven by higher fuel costs and sales volume[564]. - Ultragaz's costs of products sold increased by 5% to R$8,895.2 million in 2024, compared to R$8,485.2 million in 2023, mainly due to higher sales volume and freight costs[565]. Gross Profit and Expenses - Ultrapar's gross profit was R$9,687.0 million in 2024, a 4% increase from R$9,318.2 million in 2023, with Ipiranga's gross profit rising by 2% to R$6,605.7 million[567]. - Ultrapar's SG&A expenses were R$4,371.6 million in 2024, a 2% increase from R$4,271.4 million in 2023, influenced by inflation and personnel costs[568]. - Ipiranga's SG&A expenses increased by 3% to R$3,019.2 million in 2024, compared to R$2,933.3 million in 2023, due to higher personnel expenses and technology service contracts[570]. - Ultracargo's SG&A expenses increased by 5% to R$187.4 million in 2024 from R$178.7 million in 2023, driven by higher personnel expenses and advisory fees for expansion[572]. Financial Performance - Other operating expenses improved to R$414.1 million in 2024, a reduction of R$188.8 million compared to R$602.9 million in 2023, primarily due to lower decarbonization credit expenses[573]. - Ultrapar's net financial expense decreased to R$931.9 million in 2024 from R$999.1 million in 2023, reflecting lower net debt costs[577]. - Income and social contribution taxes rose by 40% to R$1,485.6 million in 2024, up from R$1,060.9 million in 2023, with an effective tax rate of 37%[578]. - Ultrapar's net income remained stable at R$2,525.9 million in 2024, compared to R$2,517.8 million in 2023[579]. Cash Flow and Investments - Net cash provided by operating activities was R$3,735.6 million in 2024, a decrease of R$114.2 million from 2023 due to higher working capital investments[586]. - Net cash consumed by investing activities increased to R$6,387.9 million in 2024, up R$5,366.4 million from 2023, largely due to increased financial investments[587]. - Consolidated debt rose to R$14,302.1 million in 2024 from R$11,768.0 million in 2023, with total loans amounting to R$13,860.5 million[594]. - As of December 31, 2024, Ultrapar had R$2,071.6 million in cash and cash equivalents, down from R$5,925.7 million in 2023[591]. Capital Expenditures - Ultrapar's capital expenditures and other investments in 2024 totaled R$2.2 billion, a 14% increase compared to 2023, driven by higher investments in Ultragaz and Ultracargo[602]. - Ipiranga invested R$1,000.7 million in 2024, focusing on the expansion and maintenance of service stations and logistics infrastructure[609]. - Ultragaz's investment in 2024 was R$437.2 million, primarily for equipment in the bulk segment and expansion into new energies[609]. - Ultracargo invested R$677.3 million in 2024, mainly for construction and expansion projects at various terminals[609]. - Ipiranga plans to invest R$1,366.5 million in 2025, with R$688.5 million allocated for expansion and R$677.5 million for maintenance[609]. - Ultragaz is planning to invest R$480.5 million in 2025, focusing on capturing new customers and expanding infrastructure[609]. - Ultracargo's planned investment for 2025 is R$672.6 million, with R$556.8 million for expansion and R$115.8 million for maintenance[609]. Research and Development - Ipiranga's R&D efforts led to the successful launch of the Ipimax product line, enhancing fuel performance and quality[606]. - Ultragaz began distributing bioLPG in January 2024, reinforcing its commitment to sustainability[611]. Market Trends - The liquid bulk storage sector grew by 3% in 2024, driven by a 6% increase in fuel handling[617]. Accounting Policies - The company recognizes provisions for tax, civil, and labor risks when there is a present obligation, and the amount can be reliably estimated, impacting the financial statements as an expense for the year[630]. - Deferred tax assets realization is evaluated based on taxable income projections, considering GDP growth, exchange rates, interest rates, inflation, and commodity price indices[632]. - Business combinations are accounted for using the acquisition method, with the acquisition cost measured at fair value, and goodwill recognized as the excess of consideration over net assets acquired[634]. - Non-controlling interest in acquired companies is measured based on their interest in net assets identified at the acquisition date[634]. - Costs related to acquisitions are recorded in the statement of income when incurred, impacting the overall financial performance[634]. - The company updates provisions based on the development of legal proceedings, which may be reversed if loss estimates change[630]. - Contingent assets are disclosed when economic benefits are probable and recognized only when realization is certain[630]. - The management's estimates regarding deferred tax assets reflect economic conditions during the realization period[632]. - Goodwill is allocated to the company's operating segments for impairment testing purposes[634]. - For further details on critical accounting estimates, refer to the Consolidated Financial Statements[635].