Wilson Sons Holdings Brasil SA
BOVESPA:PORT3
Wilson Sons Holdings Brasil SA
Wilson Sons Holdings Brasil SA stands as a robust cornerstone in the maritime and logistics sector of Brazil, weaving its operations deeply into the fabric of the country's bustling economic landscape. Founded in the rolling tide of the 19th century, the company's evolution from a simple tugboat operator into a diversified powerhouse reflects a narrative of strategic growth and adaptation. Today, Wilson Sons thrives by offering a spectrum of services that are essential for the seamless movement of goods. From the formidable presence of its container terminals in Salvador and Rio Grande to its comprehensive logistics services, including custom house brokerage and warehousing solutions, the company underscores the crucial role it plays in maintaining the efficiency of supply chains that underpin Brazil's commerce.
At the heart of Wilson Sons' business model lies the symbiotic relationship between its diversified operations. It leverages a powerful portfolio that includes port terminal operations, towage services, offshore support bases, and shipbuilding. By aligning its services in such a cohesive manner, Wilson Sons can optimize how goods are transported and handled both domestically and internationally. Its financial success is intrinsically linked to the efficiency and reliability it brings to its clients, which in turn drives growth and profitability. In the dynamic waters of the global economy, Wilson Sons has anchored itself firmly as a linchpin of Brazilian trade, brimming with both historical significance and modern vitality.
Earnings Calls
In the first quarter, Wilson Sons reported a 20% revenue increase to BRL 767 million, buoyed by robust performance in its Container Terminal and Towage segments. EBITDA surged 30% to BRL 366 million, demonstrating solid operational strength. The company achieved an 85% rise in net profit, reaching BRL 195 million. Container volumes grew 25%, and Towage revenue rose 24%. Bank debt fell 6%, with leverage at 0.8x EBITDA. An interim dividend of BRL 0.29 per share was approved. Wilson Sons is focused on enhancing safety, operational excellence, and disciplined capital allocation as they navigate future opportunities.
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[Interpreted] Good morning, everyone, and welcome to Wilson Sons First Quarter of 2025 Earnings Call. Joining us today are Mr. Fernando Salek, the company's CEO; and Mr. Arnaldo Calbucci, the COO. The call is being recorded. [Operator Instructions]
Financial information is presented in Brazilian reais and complies with international financial reporting standards unless otherwise stated. Page 2 of the presentation contains the usual disclaimers regarding forward-looking statements.
I would now like to hand the conference over to Mr. Fernando Salek. Go ahead, sir.
[Interpreted] Thank you. Good morning, everyone, and welcome to our earnings call. Let's begin the presentation on Slide 4 with an update on the change of control transaction. In early April, CADE's approval became final and definitive Later that month, BNDES authorized the transaction. Completion remains subject to ANTAQ's approval and is expected to occur during the second quarter. Upon completion, the buyer will launch a mandatory tender offer for the company's remaining shares.
Turning to Slide 6. On this slide, we highlight our safety performance. In the 12 months ended 31 March, our lost time injury frequency rate was 0.28 incidents per million hours worked, consistently outperforming the world-class benchmark. Our unwavering commitment to safety and employee well-being is the cornerstone of our operations and we remain firmly focused on the ongoing pursuit of our 0 accident target.
Turning to Slide 8. Here, we provide an overview of our consolidated results. In the first quarter, net revenue rose 20% to BRL 767 million primarily driven by strong operational performance in the quarter -- excuse me, in the Container Terminal and Towage segments. In U.S. dollars, revenue grew 1.5%. EBITDA increased 30%, reaching BRL 366 million reflecting the exceptional performance of our core businesses and a meaningful contribution from the offshore vessel operation recognized through equity income. In U.S. dollars, EBITDA rose 10%. Net profit grew 85%, totaling BRL 195 million, driven by stronger operating results. In U.S. dollars, net profit increased 56%, impacted by the significant depreciation of the Brazilian reais compared to the prior year period.
We now move to Slide 9. On this slide, we highlight the financial performance of our main businesses. In Container Terminals, volumes grew 25% in the quarter, driven by a significant increase in transshipment and import flow. Revenue rose 15% to BRL 292 million, supported by strong operational performance and gains from ancillary services. EBITDA increased 12%, reaching BRL 160 million, benefiting from higher volumes and economies of scale. In U.S. dollars, revenue fell 3%, while EBITDA declined 5%, reflecting the depreciation of the Brazilian reais.
In the Towage division, harbor maneuvers performed by owned tugs grew 4% in the quarter. Revenue increased 24% to BRL 368 million, driven by more favorable tariffs and gains from special operations. Revenue from special operations grew 1% in U.S. dollars, positively impacted by increased services to LNG terminals and offshore energy assets. In reais, the increase was 19% mainly reflecting the depreciation of the local currencies. EBITDA rose 34%, reaching BRL 168 million, supported by revenue growth and margin expansion. In U.S. dollars, revenue increased by 5% and EBITDA by 13%.
In our nonconsolidated Joint Ventures, mainly comprising the offshore support vessel business, operating days declined 5% due to increased idle time between contracts. Revenue increased 20%, totaling BRL 177 million, driven by exchange rate depreciation and higher daily rates. Net profit recognized through equity income recorded a significant increase, reaching BRL 22 million, mainly driven by a foreign exchange gain of BRL 16 million in the period.
Moving to Slide 11. Here, we present some of our liquidity and leverage indicators, which remain consistently strong. Bank debt decreased 6% in Brazilian reais compared to the balance as of December 31, reflecting the depreciation of the Brazilian currency during the period, which reduced the value of U.S. dollar-denominated debt when reported in reais. In U.S. dollars, however, borrowings increased 1%, totaling BRL 280 million.
Highlights from the quarter's cash flow include BRL 324 million from operating activities, BRL 65 million in capital expenditure mainly allocated to the maintenance of Container Terminals and tugboats and BRL 64 million in repayments of bank loans. As a result, we ended the period with BRL 572 million in cash and cash equivalents.
Bank leverage in reais declined to 0.8x EBITDA since December 31, reflecting a stronger operating profit. Regarding shareholder remuneration, on May 7, the Board of Directors approved the distribution of an interim dividend based on first quarter results, amounting to approximately BRL 0.29 per share or a total of around BRL 126 million. Shares will trade ex dividend from May 13, inclusive and payment will be made by May 19.
The presentation ends here, and I would like to invite you to the Q&A session.
[Interpreted] [Operator Instructions] This concludes the question-and-answer session. I would like to invite Mr. Fernando Salek to proceed with his closing remarks. Go ahead, sir.
[Interpreted] Thank you once again. In conclusion, our exceptional performance in the first quarter underscores the strong organic growth across our portfolio. The strength of our core businesses has been remarkable showcasing both the vigor of our operating model and the effectiveness of our strategy.
Looking ahead, we remain steadfast in our commitment to stringent safety standards, operational excellence, optimal asset utilization and disciplined capital allocation. We're very proud of the progress made last year and confident in our ability to navigate towards an even brighter future.
I extend my deepest gratitude to all of our employees for their continued dedication and exemplary work, which has been the hallmark of our company throughout its journey. Thank you all for joining us today, and I hope that you stay well and safe. Have a good day.
[Interpreted] This concludes the Wilson Sons conference call. Thank you for participating, and have a good day.
[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]