Movida Participações (MOVI3) Q2 2024 earnings summary

Executive summary

• Achieved record net revenue of R$3.44 billion in 2Q24, up 38.6% year-over-year, with EBITDA at R$1.15 billion and EBIT at R$654 million, driven by operational efficiency and growth across all business lines.

• Adjusted net profit reached R$80 million in 2Q24, reversing last year's loss, with annualized ROIC at 11.7%, 3.3 p.p. above cost of debt.

• Strategic focus on repricing rental rates, capital allocation to GTF, and productivity gains in used car sales underpinned value creation and margin expansion.

Financial highlights

• Net revenue grew 38.6% year-over-year to R$3.44 billion in 2Q24; rental revenue up 30.3% to R$1.61 billion.

• EBITDA increased 29.1% to R$1.15 billion, with rental EBITDA margin at 69.9% (+5.6 p.p. YoY); EBIT reached R$654 million (+30.6% YoY).

• Adjusted net profit was R$80 million in 2Q24 and R$142 million in 1H24; net profit R$43 million in 2Q24.

• Used car sales net revenue rose 46.7% to R$1.8 billion, with 27,954 cars sold (+48.6% YoY).

• ROIC at 11.7% in 2Q24, up 3.7 p.p. YoY and 3.3 p.p. above cost of debt.

Outlook and guidance

• RAC yield guidance for 2024 set at 4.2% per month; achieved 4.0% in 2Q24.

• Used car retail sales per store exceeded guidance, reaching 41 cars/month in 2Q24.

• GTF capital allocation target of 60% for 2024 already surpassed at 61% in 2Q24.

• Focus remains on operational efficiency, cost control, deleveraging, and operating cash generation.