CVC Brasil Operadora e Agência de Viagens (CVCB3) Q3 2024 earnings summary

Executive summary

• Achieved positive net income of R$14.4 million in Q3 2024, the first after 20 quarters of losses, and reduced net loss by R$340 million in 9M24 vs. 9M23, despite macroeconomic challenges and the Rio Grande do Sul airport closure.

• Opened a record 90 stores in Q3 2024 (72 in Brazil, 18 in Argentina), totaling 191 in 9M24 and 250 since June 2023, with strong franchisee confidence and expansion beyond capital cities.

• Double-digit B2C growth and B2B returning to growth, with B2C confirmed bookings in Brazil up 10.3% year-over-year and exclusive products share at 19.5%.

• Strategic focus on expanding exclusive products, alternative financing, phygital sales process, and technology investments, especially in smaller towns.

• Fitch upgraded credit rating to BBB with stable outlook, reflecting improved margins, profitability, and debt profile.

Financial highlights

• Q3 2024 adjusted EBITDA reached R$124.7 million (34% margin, +8.6 p.p. YoY), Brazil EBITDA margin at 38%; net income of R$14.4 million reversed a R$87.5 million loss in Q3 2023.

• Operating cash generation was R$118 million in Q3 2024, matching 2019 levels and improving R$209 million YoY.

• Net debt reduced to R$433.7 million, with leverage at 1.2x Net Debt/EBITDA (LTM); cash and equivalents at R$383.4 million.

• Net revenue for Q3 2024 was R$363.8 million, down 3.2% YoY, but up 3.7% for 9M24; gross profit in Q3 2024 was R$347.0 million.

• EBIT was R$43.7 million in Q3 2024, up from a loss in Q3 2023; operating cash flow for 9M24 was R$165.2 million.

Outlook and guidance

• Management expects continued net debt reduction, driven by EBITDA growth and working capital improvements, with G&A expenses targeted to grow no more than inflation.

• B2C growth expected to accelerate in Q4 and Q1 2025, with sales expenses maintained below 2% of bookings.

• Strategic plan for 2025–2027 focuses on technology, price competitiveness, core business reinforcement, and niche market expansion.

• Management remains confident in growth potential and strategy execution, focusing on expansion, profitability, and cash management.

• No material uncertainties identified regarding going concern; business continuity is supported by ongoing improvement plans.