The consolidation of Águas de Manaus accounted for most of the Company’s financial and operational improvement
São Paulo, May 16, 2019 – Aegea reported today its financial results for the first quarter of 2019. The holding company, which consolidates 49 basic sanitation concessionaires in Brazil, posted net revenue growth of 51% on the same period last year, to R$518.3 million.
The improvement in net revenue was mirrored in EBITDA, which advanced 67.7% to R$283.9 million, and EBITDA margin, which expanded 5.5 percentage points to 54.8%.
Most of the improvement was due to the acquisition of the concessionaire Águas de Manaus, concluded in mid-2018, which, as the second largest concessionaire in terms of revenue, accounted for 72.8% of the growth in the holding company’s net revenue and for 22.6% of its total revenue.
In the first quarter of the year, Aegea also captured efficiency gains in its operations, such as the reduction in unit energy consumption from 0.646 kWh/m3 to 0.630 kWh/m3. Another highlight was the reduction of 1.5 percentage points in the delinquency rate in the year to March, to 2.9% of the client base.
In the 12 months to March, the Company invested R$671.1 million, up 17.6% on the prior-year period, mainly due to the acquisition of new concessions.
The company closed the quarter with gross debt of R$3.8 billion, 91.4% of its debt maturing in the long term and 8.6% in the short term, an average debt amortization term of 5.3 years and an average debt cost of 8.9%.