Patria Reports Fourth Quarter & Full Year 2023 Earnings Results
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Insights
The reported increase in Fee Related Earnings (FRE) by 14% and Performance Related Earnings for Patria in the full year 2023 signifies a strong revenue generation capability, particularly in the context of asset management firms where FRE is a critical metric indicating stable revenue unaffected by market volatility. The notable 32% quarterly increase in FRE suggests an acceleration in Patria's business activities and client engagement. The FRE margin of 60% is particularly impressive, reflecting operational efficiency and a robust monetization strategy. Investors may view this as a positive sign of the company's ability to scale profitably.
Furthermore, the reported 26% year-over-year EPS growth is a key indicator of the company's profitability and financial health. This substantial growth rate, significantly above the average for the financial sector, may indicate that Patria is outperforming its peers and could potentially lead to a re-rating of the stock by the market. The declared dividend of $0.399 per share aligns with the increased earnings, reinforcing the company's commitment to shareholder returns.
The positive financial results from Patria are indicative of a broader trend within the asset management industry, where firms that can effectively diversify and innovate their product offerings tend to outperform. Patria's confidence in meeting multi-year targets reflects a strategic foresight that resonates well with investors looking for long-term growth. The company's performance since its IPO suggests a successful post-IPO strategy, which is a critical period for establishing investor confidence and market positioning.
Additionally, the focus on distributable earnings—$187.8 million for the full year—is an important metric for investors, as it represents the actual cash available for distribution to shareholders. The increase in distributable earnings, coupled with a solid dividend, may attract income-focused investors and could influence the stock's liquidity and volatility.
The financial results reported by Patria may have broader economic implications. The increase in earnings and profitability suggests that the asset management sector is potentially experiencing a period of growth, which could be reflective of underlying economic trends such as market expansion or increased investment activity. Patria's success might be an early indicator of investor confidence and a willingness to allocate capital to managed funds.
The company's ability to increase its net income to $118.4 million for the full year amidst economic uncertainties could be indicative of strong management and a resilient business model. This resilience is essential not only for Patria's stakeholders but also for the financial sector's stability, which has a ripple effect on the broader economy through investment and lending activities.
GRAND CAYMAN, Cayman Islands, Feb. 15, 2024 (GLOBE NEWSWIRE) -- Patria (Nasdaq:PAX) reported today its unaudited results for the fourth quarter and full year ended December 31, 2023. The full detailed presentation of Patria's fourth quarter and full year 2023 results can be accessed on the Shareholders section of Patria’s website at https://ir.patria.com/.
Alex Saigh, Patria’s CEO, said: “I’m very pleased with the performance we delivered in the 4th quarter and the full year 2023. We generated Fee Related Earnings of
Financial Highlights (reported in $ USD)
IFRS results included
Dividends
Patria has declared a quarterly dividend of
Conference Call
Patria will host its fourth quarter and full year 2023 earnings conference call via public webcast on February 15, 2024, at 9:00 a.m. ET. To register and join, please use the following link:
https://edge.media-server.com/mmc/p/u746i4gs/
For those unable to listen to the live broadcast, there will be a webcast replay on the Shareholders section of Patria’s website at https://ir.patria.com/ shortly after the call’s completion.
About Patria
Patria is a global alternative asset manager and industry leader in Latin America, with over 35 years of history, combined assets under management of
Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You can identify these forward-looking statements by the use of words such as "outlook," "indicator," "believes," "expects," "potential," "continues," "may," "will," "should," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. We believe these factors include but are not limited to those described under the section entitled "Risk Factors" in our 424(b) prospectus, as such factors may be updated from time to time in our periodic filings with the United States Securities and Exchange Commission ("SEC"), which are accessible on the SEC's website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in our periodic filings. The forward-looking statements speak only as of the date of this press release, and we undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.
Contact
Josh Wood
t +1 917 769 1611
josh.wood@patria.com
Andre Medina
t +1 345 640 4904
andre.medina@patria.com
FAQ
What were Patria's Fee Related Earnings for the full year 2023?
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What was the net income attributable to Patria in Q4 2023?
When will Patria pay the quarterly dividend declared?
Where can the detailed presentation of Patria's financial results be accessed?
