Brazil’s Log-In registers 11.7% and 1.1bn revenue over 1H23

Log-In Logística Intermodal has unveiled its financial and operating results for the second quarter of 2023, along with consolidated figures for the first half of the year, this Wednesday (09/08).

Among the notable highlights of 2Q23 are the record-high Adjusted EBITDA for a second quarter, historic achievements in Net Operating Revenue (NOR), and the volume handled in Cabotage operations, as well as unprecedented records in NOR and EBITDA for Logistics Solutions (3PL).

Furthermore, the company initiated fractional cargo distribution operations in northern Brazil, involving Log-In, Tecmar Transportes, and Oliva Pinto, achieving the best service level in Tecmar’s history. On the ESG front, the launch of Log-In’s 3rd Sustainability Report stands out, ensuring alignment with international guidelines.

Regarding financial outcomes, Log-In recorded a Net Operating Revenue of BRL 554.6 million in 2Q23 and an Adjusted EBITDA of BRL143.1 million. In the consolidated period from January to June, the Group amassed revenues of BRL1.1 billion and an Adjusted EBITDA of BRL 308.9 million. This implies a growth of 11.7% and 23.8%, respectively, when compared to the first half of 2022.

Key drivers behind the group’s first-half results include the surge in revenue from Road Freight Transport, climbing from BRL 156.6 million in the first six months of 2022 to BRL 263.5 million in the same period of 2023. Moreover, Cabotage NOR witnessed a 30% increase compared to 6M22, while the Vila Velha Port Terminal saw a 5.7% rise in Net Operating Revenue, primarily attributed to improved pricing and better results in Storage and Other Services.

According to Pascoal Gomes, CFO and Investor Relations Director of Log-In Logística Intermodal, the results obtained in the 1H are a testament to the robust planning carried out by Log-In, with the aim of enhancing the group’s businesses. “We invested a great deal over the past year to expand our business strategy and service offerings supported by intelligent and sustainable logistics planning, integrating the benefits of each mode and promoting the best practices in multimodality. We focused, above all, on reducing CO2 emissions, achieving a 26% decrease between 2020 and 2022. We are now witnessing the results of this endeavor, with substantial growth in the first semester and consecutive records in the recent quarters,” Pascoal explains.

Coastal Navigation

Second-quarter figures related to the Coastal Shipping service reaped the benefits from the Cabotage segment’s NOR, which hit an all-time high. Collectively, the company’s Shipping business posted a Net Operating Revenue of BRL 321.9 million in 2Q23 and BRL 651.4 million in consolidated figures for the first half of 2023. The record-breaking Cabotage revenue is largely attributed to volume growth and the onset of the new Amazonas Express Service, contributing BRL 230.8 million to the second quarter’s total.

In terms of Adjusted EBITDA from Coastal Shipping, Log-In recorded BRL 102.2 million for the second quarter and a consolidated amount of BRL 230.4 million in 6M23, marking an 11.9% increase compared to the first half of 2022. This progress can be attributed to the pricing strategy, emphasizing volume growth and an improved cargo mix in 1Q23.

Third-party Logistics

In Logistics Solutions (3PL – Third-party Logistics), Log-In offers tailor-made solutions to customers, encompassing maritime transport and port services.

During 2Q23, the company achieved unprecedented records in EBITDA, totaling BRL 8.9 million, and in Net Operating Revenue, reaching BRL 14.5 million. These growth figures stem from the strategic provision of services through customized logistics solutions, with the signing of new contracts over recent quarters.

Integrated Logistics Solutions encompass the Navigation and Logistics Solutions (3PL) divisions, contributing a combined Net Revenue of BRL 336.4 million in 2Q23.

Vila Velha Port Terminal (TVV)

Vila Velha Port Terminal achieved its highest-ever Net Operating Revenue for the second quarter, totaling BRL 80.3 million. The cumulative figure for 2023 stands at BRL 165.9 million. The increase in general cargo handling can be attributed to a notable 11% growth in the granite line (block) and a significant 50% rise in the bulk segment.

Despite a decrease in container throughput, TVV reported an Adjusted EBITDA of BRL 36.8 million in 2Q23, primarily bolstered by the highest NOR achieved in the second quarter. Over the six-month period, a growth of 12.2% was recorded compared to 6M22, reaching BRL 78.2 million. This development was supported by the exceptional service revenue performance in 1Q23, a consequence of TVV’s strategy of operating as a multipurpose terminal.

According to Gustavo Paixão, Director of Terminals at Log-In Logística Intermodal, innovative and modernization initiatives at TVV have significantly contributed to the terminal’s development and successful outcomes. “TVV has consistently achieved record results, primarily owing to various modernization initiatives undertaken at the terminal to expand the range of services offered and improve their quality,” adds Paixão.

Cargo Road Transport

In the realm of Road Cargo Transport, the Log-In Group reported a Net Operating Revenue of BRL 137.8 million during the second quarter of 2023. Adjusted EBITDA exhibited a remarkable 66% growth from 1Q23 to 2Q23, reaching BRL 16.6 million.

A noteworthy highlight of 2Q23 is the collaborative effort between Tecmar Transportes and Log-In, resulting in an approximate 22% surge in cargo throughput, totaling 647 TEUS compared to 530 TEUS in the first quarter of the year.

This outcome was positively influenced by the employment of a new pricing strategy, operational efficiency enhancement initiatives, and the synergistic effects of the fractional cargo distribution operation launched in the Northern region, involving Log-In, Tecmar, and Olive Pinto. Additionally, Tecmar achieved its highest level of service quality in the company’s history during this second quarter.

In line with Tecmar’s growth strategy, Oliva Pinto continues to solidify the fractional cargo operation in the North region, providing delivery services in 54 cities across the states of Amazonas and Roraima through the collaboration of partner operators. As for operational efficiency in 2Q23, the implementation of the management model progressed through projects focused on safety, productivity improvement, cost efficiency, and the enhancement of quality indicators across all companies.

ESG 

Since 2020, the Log-In Group has undertaken an endeavor to establish an EESG agenda (Environmental, Social, and Corporate Governance Sustainability, encompassing the Economic perspective). This initiative stems from a genuine commitment to fostering a sustainable environment within its business models.

Within this context, the initiatives meticulously developed over the past few years constitute integral components of Log-In’s ESG Agenda roadmap. These initiatives have been collaboratively shaped in conjunction with the company’s leadership, permeating throughout the organization. They are transparently presented, bolstered by tangible and lucid indicators, within the framework of the Sustainability Report. This report adheres to the GRI Standards (Global Reporting Initiative) and the guidelines of the Sustainability Accounting Standards Board (SASB).

Among the highlights of 2Q23, within the Environmental context (E), lies the accreditation of Log-In’s third Greenhouse Gas report, seamlessly integrated into the Sustainability Report, aligning with the international GHG Protocol standard and scrutinized by an independent verification entity.

On the Social front (S), the Group has diversely broadened its endeavors. These include conducting seminars on topics such as Motherhood and Career, launching an LGBTQIA+ Pride Day campaign, initiating the Trainees program, conducting the 1st Selection Process for Young Apprentices in Rio de Janeiro’s Morro da Providência, participating in the Job Fair for People with Disabilities, the commencement of the Apprentice Program at TVV, and a campaign for collecting books to establish a community library around the Terminal.

Within the domain of Governance (G), Log-In maintains an unwavering commitment to enhancing the Integrity Program. This is accompanied by ongoing efforts to cultivate a corporate culture that fosters an increasingly ethical business environment. To this end, the new Log-In Group Reporting Channel has been introduced, providing an intuitive and dynamic tool for employees and external stakeholders to report any violations of integrity guidelines.

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