CVC Brasil Operadora e Agência de Viagens (CVCB3) Q2 2024 earnings summary

Executive summary

• Achieved record store expansion with 90 new stores in H1 2024, including 60 in Q2, focusing on smaller cities and partnerships with major retailers, multiplying the addressable market and strengthening franchisee engagement.

• B2C segment saw 16% growth in confirmed bookings, 10% same-store sales growth, and a 21% increase excluding Rio Grande do Sul impact, with exclusive products reaching up to 17% of domestic leisure sales.

• B2B segment bookings declined 4.8%-5% year-over-year, but net revenue rose 25% and take rate increased by 1.4 p.p., reflecting a focus on profitability and improved partner negotiations.

• Argentina operations remained resilient, opening 11 new stores, generating positive EBITDA and cash, and gaining market share despite a 37.9%-38% drop in bookings due to macroeconomic headwinds.

• Elected Mateus Bandeira as new Chairman and maintained top customer satisfaction ranking (RA1000 seal) for the third consecutive quarter.

Financial highlights

• Net revenue in Brazil grew 21% year-over-year in Q2 2024, with consolidated net revenue reaching up to R$316.5 million, up 17.5% year-over-year.

• Adjusted EBITDA improved to R$70.3 million (23.9% margin) in Q2 2024, reversing a loss in Q2 2023; consolidated EBITDA was R$58.7 million.

• Operating cash generation reached R$35 million, the best in 18 quarters, with a R$345 million reduction in overall indebtedness year-over-year.

• Take rate improved to 9.4% in Q2 2024, with B2C at 12.9% and B2B at 6.6%, each up 1.4 p.p. year-over-year.

• Net loss narrowed to R$22.2 million from R$167.0 million in Q2 2023; cash and equivalents at quarter-end were R$244.2 million.

Outlook and guidance

• Continued focus on store expansion, especially in smaller cities and through partnerships, with further B2C and B2B growth expected in H2.

• Management expects further operational efficiency, cash generation, and benefits from exclusive product sales in coming quarters.

• Argentina expected to recover gradually, with market share gains and positive cash generation prioritized.

• Take rate expected to remain around 9%, with further expense reductions as a percentage of net revenue.