CVC Brasil Operadora e Agência de Viagens (CVCB3) Q4 2024 earnings summary

Executive summary

• Achieved record 301 new store openings in 2024, including 260 CVC Lazer stores and 30–39 Almundo stores, returning to the top 10 largest franchises in Brazil.

• Adjusted net profit reached R$54 million in 2024, the best since 2018, reversing a R$238.3 million loss in 2023 and marking a R$292 million year-over-year improvement.

• EBITDA doubled to R$389 million in 2024, with a 29% margin, despite negative impacts from floods in Brazil and a drop in Argentina.

• B2C bookings grew 18.5% and B2B bookings grew 17% in Q4 2024 year-over-year, outpacing the domestic market's 6% passenger growth.

• Free cash flow generation before interest was R$185 million, a turnaround of R$615–646 million from 2023.

Financial highlights

• Net revenue for 2024 was R$1.3–1.34 billion, up 3.8% year-over-year, with a take rate increase from 8.5% to 9.3%.

• Q4 2024 EBITDA reached R$108 million, up 25% year-over-year; Brazil's EBITDA grew 124% in Q4.

• G&A to net revenue ratio dropped from 61.1% in 2023 to 51.5% in 2024, with a R$40 million reduction in absolute G&A expenses.

• Net debt reduced to R$241 million at end-2024, with leverage at 0.6x EBITDA LTM, the lowest since debenture issuance.

• Adjusted net income improved from a R$238 million loss in 2023 to a R$54 million profit in 2024.

Outlook and guidance

• Expecting continued growth in all business units in 2025, with Argentina leading recovery, followed by B2B and B2C.

• Same store sales growth in B2C projected around 7% for 2025, with acceleration expected throughout the year.

• New store openings in 2025 targeted at around 100, mainly in smaller towns, slightly below 2024's record.

• Technology and innovation investments to accelerate, leveraging partnerships with Amadeus, Oracle, and CIT.

• Management remains focused on growth, innovation, expanding sales and profitability, risk mitigation, and further deleveraging.