MRS posts 32% higher net revenue in first quarter 2024

Rail operator MRS Logística, which controls a 1,643 km train network spanning Minas Gerais, Rio de Janeiro, and São Paulo, reported net revenue of R$ 1.6 billion for the first quarter of 2024, marking a 32% increase compared to the same period in 2023. Net profit soared to R$ 316 million, a record 116.5% rise from 2023.

This impressive net revenue performance is driven by growth in hauled volume. Notably, general cargo operations increased significantly by 12% in the first quarter, totaling 17.5 million tons during this period.

“This is a relevant factor, as our strategy focuses on modernizing railway infrastructure and acquiring new assets to double general cargo transport. The growth reflects increased customer demand and favorable weather conditions,” said Guilherme Segalla de Mello, president of MRS.

In the first quarter, the company transported 46.6 million tonnes of cargo, equivalent to 3.4 million twin-train trailers. Year-over-year comparisons show a growth of 1.9 million tonnes of general cargo, with highlights including:

• Agricultural products: 11 million tons (+11.4% compared to Q1 2023), with soybeans (+1.5%), soybean meal (+10%), and sugar (+64.7%) leading the increase.
• Steel products: 1.86 million tons (+16.6% compared to Q1 2023).
• Cellulose: 1.4 million tons (+0.8% compared to Q1 2023).
• Containers: 588,000 tons (+27.2% compared to Q1 2023).
• Civil construction materials: 573,000 tons (+5.2% compared to Q1 2023).
• Other products: 2.04 million tons (+18.4% compared to Q1 2023).

There was also a significant increase in mining products, which account for 62.4% of the company’s throughput. “Our ore transport grew by 30% in the first quarter of 2024, ending at 29.1 million tons. An important factor was the increase in exports, which rose to 86.7% from 84% in 2023,” Mello added.

MRS exceeded R$ 894 million in EBITDA, a 45.3% increase from the previous year. Despite substantial investments, leverage remains controlled, with a net debt/EBITDA ratio of 1.0x, reflecting strong operational performance and effective debt management strategies.

Investments

MRS invested approximately BRL 1 billion in the rolling stock segment in the first two months of this year, purchasing 560 new wagons and 30 new locomotives. Some of these assets were delivered in the first quarter, and all will be operational by the end of 2025.

These acquisitions are part of the company’s railway fleet renewal, aimed at enhancing performance and operations for customers, ports, and cargo terminals. The new equipment will improve energy efficiency, reduce fuel consumption, and lower gas emissions, contributing to sustainability efforts.

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