Movida Participações (MOVI3) Q3 2024 earnings summary

Executive summary

• Achieved record net revenue of R$3.8 billion in 3Q24, up 41.6% year-over-year, and R$10.23 billion in 9M24, driven by fleet expansion and higher average ticket in GTF and RAC contracts.

• Adjusted net income reached R$91 million in 3Q24, reversing a loss in 3Q23, and R$232 million in 9M24.

• EBITDA hit an all-time high of R$1.25 billion in 3Q24, up 43.7% year-over-year, with margin expansion in all business lines.

• ROIC improved to 12.4% in 3Q24, up 4.4 p.p. from 2023, exceeding the average cost of debt by 3.7 p.p.

• All 2024 strategic guidance targets for RAC, Used Cars, and GTF were achieved ahead of schedule.

Financial highlights

• Net revenue from rentals grew 34.5% year-over-year to R$1.74 billion in 3Q24; used car sales revenue rose 48.4% to R$2.03 billion.

• Adjusted EBIT was R$701 million in 3Q24, up 54.0% year-over-year.

• Gross margin on total net revenue was 28.0% in 3Q24.

• Net debt ended 3Q24 at R$14.16 billion, with a cash position of R$4.0 billion; net debt/EBITDA reduced to 3.1x (2.7x annualized).

• Financial expenses in 3Q24 were R$673 million, with a non-recurring negative effect of R$19.5 million from swap contract expiration and a positive R$8 million from bond repurchase.

Outlook and guidance

• Achieved 2024 guidance for RAC yield (4.2% p.m.), Used Cars, and GTF ahead of schedule; guidance discontinued as all targets met.

• Expect continued price recalibration and operational efficiency to further boost profitability and margins in coming quarters.

• GTF backlog of R$6.9 billion ensures future revenue growth and stability.