Q1 2025 Localiza Rent a Car SA Earnings Call (English, Portuguese) Transcript
Key Points
- Localiza Rent A Car SA (LZRFY) reported a 14.8% increase in net income for Q1 2025 compared to the same period last year, reaching 842 million reais.
- The company achieved a consolidated net revenue growth of 16.7% year-over-year, totaling 10.1 billion reais.
- Localiza Rent A Car SA (LZRFY) successfully increased its EBITDA margin in the car rental division by 1.9 percentage points to 65.2%.
- The company maintained a healthy debt profile, with 9.4 billion reais in cash, sufficient to cover short-term debt and accounts payable.
- Localiza Rent A Car SA (LZRFY) continued to optimize its fleet, reducing the number of cars by 40,821 in Q1 2025 to improve productivity and utilization rates.
- The company faced challenges with allowance for doubtful accounts, particularly in the truck subsegment associated with agribusiness, impacting the EBITDA margin.
- Localiza Rent A Car SA (LZRFY) experienced a significant reduction in accounts payable to automakers, affecting cash flow and increasing net debt by 2.1 billion reais.
- The fleet rental division saw a contraction in EBITDA margin by 1.6 percentage points, despite efforts to optimize the portfolio.
- There is a potential risk of higher depreciation rates due to the increasing gap between new and used car prices.
- The company anticipates a gradual rejuvenation of its fleet, which may extend into 2026, potentially affecting operational performance and capital allocation.
Good morning and welcome to the Localize and Co.'s first quarter of 2025 webinar. Joining us are Rodrigo Tavares, our CFO, and myself, Nora Lanari, investor relation director of the company.
We inform you that this webinar is being recorded and will be available at RI.localliza.com, where the complete material for the results disclosure is available. The presentation is also available for download on the IR website.
For the Q&A session for analysts and investors, we advise you to signal your interest in participating via Q&A icon at the bottom of your screens. Type in your name, institution, and language.
When called upon, a request to activate your microphone will appear on the screen.
The questions can be made both in Portuguese or in English.
To send written questions, use the Q&A icon at the bottom of your screen and fill in your name and institution before the question.
We inform you that the values in this presentation are in millions of reais and in IFRS. We
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