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Revenue per Kilometer: Increased by more than 54% from less than 22 pesos in Q3 2021 to 33.87 pesos in Q3 2024.
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Operating Cash Flow: Significant increase to almost PhP 1.5 billion this quarter.
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Leverage Ratio: Remained at the same level as Q2 2024, with a cash position of more than PhP 1.3 billion.
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EBITA: Record high figures despite nonrecurrent expenses, with efficiencies expected to realize approximately PhP 60 million per month.
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Logistics and Technology Division Margin: Achieved about 8% margin.
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CapEx: Roughly PhP 1 billion invested in organic growth.
Release Date: October 29, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Grupo Traxion SAB de CV (GRPOF) reported record high revenues and EBITA figures for the third quarter of 2024.
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The company executed a binding agreement to acquire Solistica, which is expected to significantly enhance its logistics and technology division.
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The acquisition of Solistica is anticipated to increase the logistics division’s contribution to more than 50% of consolidated revenues by 2025.
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The company has maintained a strong cash position with a leverage ratio below 2.5 times, adhering to its self-imposed limit.
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Grupo Traxion SAB de CV (GRPOF) has shown significant improvements in ESG ratings, including a higher Carbon Disclosure Project rating and a better score in the Standard and Poor’s Corporate Sustainability Assessment.
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The company incurred non-recurrent expenses related to organizational restructuring, particularly in the last mile business.
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There are pending non-recurring expenses expected in the fourth quarter related to the efficiencies program.
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The mobility of personnel division has experienced increased costs, impacting overall expenses.
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Grupo Traxion SAB de CV (GRPOF) plans to divest from Brazilian and Colombian operations of Solistica, indicating potential challenges in international operations.
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The company is considering a more conservative approach to CapEx in 2025, which may impact growth initiatives.
Q: How are you seeing the demand trends for 2025, and what are the expected expenses related to the B2C business? A: The outlook for 2025 shows strong demand activity, enabling us to close many contracts for next year. We are considering being more conservative with CapEx, focusing on the growth of the logistics and technology division, which requires less CapEx. Regarding expenses, we expect non-recurring expenses related to restructuring to be between PHP 20-30 million in the fourth quarter.