Grupo Vamos (VAMO3) Q3 2024 earnings summary

Executive summary

• Consolidated net revenue rose 33.3% year-over-year in Q3 2024 to nearly R$2 billion, with rental segment revenue up 35% and record used asset sales up 46%.

• Net income increased 51.2% year-over-year in Q3 2024 to R$175.1 million, driven by strong operational performance in the rental segment.

• EBITDA grew 27.6% to R$871.1 million in Q3 2024, with the rental segment accounting for 97% of total EBITDA.

• Strategic focus on expanding Seminovos/Sempre Novo (used asset rental), optimizing capital allocation, and deleveraging.

• Operational resilience maintained despite climate-related disruptions, with provisioning for asset impairments.

Financial highlights

• Net revenue for Q3 2024 was R$1.98 billion, up 33.3% year-over-year; nine-month revenue reached R$5.58 billion, up 20.6%.

• EBITDA reached R$871.1 million in Q3 (up 27.6%) and R$3.45 billion for the nine months.

• Net income for Q3 was R$175.1 million (up 51.2%); nine-month net income was R$498.9 million (up 27.4%).

• Used asset sales revenue grew 46% in Q3, with gross margin on asset sales at 18.1%.

• Net debt at R$10.7 billion, leverage at 3.21x, with a liquidity buffer of R$5.33 billion.

Outlook and guidance

• Projected 2025 CAPEX deployment of R$5 billion, with R$1.7 billion for used assets and R$3.3 billion for new assets.

• Net CAPEX for 2025 estimated at R$2.1 billion after used asset sales; focus on increasing fleet occupancy and reducing leverage.

• Strategic reorganization expected to be completed in 2024, creating the largest and most diversified dealership group in Brazil.

• Sustainability targets include a 15% reduction in GHG emissions intensity by 2030.