Q3 2024 Localiza Rent a Car SA Earnings Call (English, Portuguese) Transcript
Key Points
- Localiza Rent A Car SA (LZRFY) reported strong net revenue growth in the Car Rental division, totaling BRL2.4 billion, an increase of 18.7% year-over-year.
- The Fleet Rental division also saw a significant rise in net revenue, reaching BRL2.1 billion, a growth of 23.9% year-over-year.
- Seminovos, the used car sales division, achieved a net revenue of BRL5.1 billion, marking a 43.7% increase compared to the previous year.
- Consolidated net revenue grew by 32.3% to BRL9.7 billion, with EBITDA advancing 24.1% to BRL3.3 billion.
- The company maintained a strong profit of BRL812 million, reflecting a 22.2% year-over-year growth, supported by increased EBITDA and effective cost management.
- The Fleet Rental division experienced a slight reduction in fleet utilization rate by 0.5 percentage points compared to the previous year due to higher decommissioning of cars.
- Seminovos margins are expected to gradually converge to low single digits, indicating potential pressure on profitability in the used car sales segment.
- The company faces challenges with the high mileage of decommissioned cars, which could impact the average price of cars sold.
- There is a need for continued price adjustments to maintain ROIC spread amidst rising interest rates, which could affect demand elasticity.
- The company is dealing with the impact of increased preparation costs due to a higher volume of prepared cars, including severe used vehicles.
(Operator Instructions) Good afternoon, and welcome to Localiza & Co's webinar regarding the results of the third quarter of 2024. We have with us Mr. Rodrigo Tavares, CFO; and Ms. Nora Lanari, Investor Relations Director of the company. We'd like to inform you that this webinar is being recorded and will be available at ri.localiza.com where the complete earnings release material is available. The presentation is also available for download on the IR website.
(Operator Instructions) We would like to inform you that the amounts in this presentation are in millions of BRL and IFRS. We would like to emphasize that the information contained in this presentation and any statements that may be made during the video conference regarding Localiza business prospects, projections and operational and financial goals are the beliefs and assumptions of company management as well as information currently available. Future considerations are not performance of guarantee. They involve risks, uncertainties and assumptions as they relate to future events and therefore, depend on circumstances that may or may
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