Earnings Insights: JSL’s Drop, Engie’s Gain, and Totvs’s Profit Surge

In the second quarter of 2024, three prominent Brazilian companies, JSL, Engie, and Totvs, demonstrated varying financial performances.

JSL experienced a 48% decline in net profit, attributing the downturn to non-recurring factors, but remained optimistic about an upward trend in Q3.

Engie, on the other hand, saw a 6.1% increase in adjusted net profit, driven by strategic compensations and operational efficiencies.

Totvs reported a significant 16% rise in its adjusted net profit, buoyed by strong revenue growth and operational cost efficiencies, highlighting a positive trajectory for the tech firm.

JSL Reports 48% Decline in Q2 Profit, Optimistic About Q3

JSL (JSLG3) reported a net profit of R$ 107.2 million in the second quarter of 2024. This marks a decrease of 47.8% compared to the same period last year, influenced by non-recurring effects.

However, CEO Ramon Alcaraz expressed optimism for an improvement in the third quarter. He noted the first 37 days as very positive and highlighted that July performed well in the market.

Despite the second quarter typically being weaker, the third quarter is expected to be the strongest. The company’s EBITDA fell 11.4% to R$543.5 million, with margins decreasing from 34.5% to 26.2%.

Engie’s Adjusted Net Profit Rises 6.1% in Q2 2024

Engie Brasil Energia (EGIE3) achieved an adjusted net profit of R$ 855 million in the second quarter of 2024, marking a 6.1% increase over the same period in 2023.

The total net profit for the first half of the year was R$2.5 billion, up 58.2%. This performance boost was helped by compensation for delays in the Santo Agostinho Wind Complex and benefits from short-term transactions.

Despite selling the Pampa Sul Thermal Plant last year, EBITDA for the quarter grew 8.6% to R$ 1.952 billion, while net revenue for the quarter increased by 7.4% to R$ 2.82 billion.

Totvs Sees 16% Increase in Adjusted Net Profit in Q2 2024

Totvs (TOTS3) reported an adjusted consolidated net profit of R$ 120.7 million for the second quarter of 2024, an increase of 16.2% from the same period last year.

The adjusted EBITDA for the company also grew by 14.8% to R$295.9 million. The total consolidated net revenue saw a 19% increase to R$1.3 billion.

Additionally, Totvs has revised its financial projections for operational costs and expenses for its Totvs Techfin division for the fourth quarter.

The new estimate ranges between R$ 20 million and R$ 30 million, down from the previous estimate of R$ 32 million to R$ 40 million.

The adjustment reflects advances in the integration of operations between Totvs Techfin and its subsidiary supplier.

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