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

Executive summary

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

• Adjusted net income reached R$53.8–54 million, the best since 2018, reversing prior year losses and reflecting cost discipline and operational improvements.

• EBITDA doubled to R$389 million in 2024, with a margin of 29–29.5%, and Q4 EBITDA at R$108 million (+25% YoY).

• Free cash flow generation was R$185–185.3 million, a turnaround of R$615–646 million from 2023.

• Black Friday sales hit record highs, with B2C sales on the day reaching R$70 million and a daily average of R$37 million during the week.

Financial highlights

• Net revenue for 2024 was R$1.3–1.42 billion, up 3.8–10.1% YoY, with Q4 net revenue up 4–12.9% YoY.

• B2C confirmed bookings reached R$1.7 billion in Q4 2024 (+18% YoY), and R$6 billion for the year (+11% YoY).

• B2B confirmed bookings were R$1.4 billion in Q4 (+17% YoY), but full-year sales dropped 2.8% to R$5.5 billion, offset by a 16.4% revenue increase.

• Argentina bookings dropped 30–32% in 2024, but Almundo gained market share and delivered positive EBITDA and R$24 million net profit.

• G&A to net revenue ratio dropped from 61.1% in 2023 to 51.5% in 2024, with sales expenses over confirmed bookings down to 1.9%.

Outlook and guidance

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

• Store expansion to continue, targeting around 100 new stores in 2025, mainly in smaller towns and through agency conversions.

• Strategic focus on technology transformation, exclusive products, omnichannel sales, and innovation.

• Working capital in Brazil expected to remain stable, with improvement from exclusive products and Argentina's contribution.

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