Wiz Co Participações e Corretagem de Seguros (WIZC3) Q1 2023 earnings summary

Executive summary

• Net revenue excluding commissions rose 21.2% to R$212.7m; adjusted EBITDA increased 26.8% to R$122.3m, while reported net income fell 33.0% to R$34.6m.

• Statutory consolidated net revenue increased 21.4% to R$260.2m; higher financial expenses weighed on earnings.

• Priorities included simplifying operations, improving efficiency, capturing synergies and expanding distribution, products and technology.

Financial highlights

• Gross revenue was R$415.9m, up 77.7%; net revenue excluding commissions was R$212.7m, up 21.2%.

• Reported consolidated EBITDA was R$112.6m, up 13.4%; adjusted EBITDA was R$122.3m, up 26.8%.

• Reported net income was R$34.6m, down 33.0%; adjusted net income was R$71.1m, up 9.2%.

• Parent-level net income fell 60.8% to R$14.0m, mainly due to higher financial expenses and termination costs.

Outlook and guidance

• Completed cost and structure measures are expected to deliver ~R$40m in annualized savings versus 2022.

• Priorities include capturing unit maturity gains and synergies, strengthening distribution, diversifying products and investing in technology.

• Promotiva plans to expand its network and agreements; operational adjustments at Wiz Parceiros were expected to support productivity recovery from April.