Movida Participações (MOVI3) Q2 2024 earnings summary

Executive summary

• Achieved record net revenue of R$3.44 billion and EBITDA of R$1.15 billion in 2Q24, with adjusted net profit of R$80 million, reversing last year's loss and annualized ROIC at 11.7%, up 3.7 p.p. year-over-year.

• Strategic focus on repricing daily rental rates, capital allocation to long-term fleet contracts (GTF), and productivity gains in used car sales drove margin expansion.

• Operational efficiency and disciplined capital allocation underpinned value creation and improved profitability.

Financial highlights

• Net revenue grew 38.6% year-over-year to R$3.44 billion in 2Q24; rental net revenue up 30.3%.

• EBITDA increased 41.8% to R$1.15 billion, with rental EBITDA margin at 69.9%.

• Adjusted net profit reached R$80 million in 2Q24 and R$142 million in 1H24.

• Return on invested capital (ROIC) annualized at 11.7%, 3.3 p.p. above cost of debt.

Outlook and guidance

• Confident in achieving RAC yield guidance of 4.2% p.m. for 2024 through continued price adjustments.

• GTF segment expected to grow around 15% annually, with Rent-a-Car stable and no need for capital injection.

• Focus remains on operational efficiency, cost control, and disciplined capital allocation, with ongoing deleveraging and operating cash generation.