The following is a summary of the Brookfield Business Partners L.P. (BBU) Q1 2024 Earnings Call Transcript:
Financial Performance:
Brookfield Business Partners reported Q1 2024 adjusted EBITDA of $544 million - an increase from previous EBITDA margin of 19% to over 20% for the quarter.
They generated about $300 million in proceeds through distributions and sales of two smaller businesses.
Since taking BBU public, the business monetized 20 businesses, generating about $6 billion of proceeds with a composite IRR of over 30%.
Their CDK business saw a near 30% increase in adjusted EBITDA due to organic growth and a rise in economic ownership.
Business Progress:
Brookfield has been actively progressing in capital recycling initiatives as seen in the returns and building intrinsic value in its businesses.
They are leveraging AI tools to automate processes and improve efficiency.
Significant manufacturing efficiency improvements in DexKo, one of their components manufacturers, have created value through synergies.
Clarios, another one of their businesses, continues to improve and pivot towards AGM batteries.
The company has also successfully repriced its debt and compressed spreads at Brand.
Despite short-term challenges in their Healthscope venture, they are executing an improvement plan towards a sustainable operation.
More details: Brookfield Business Partners LP IR
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