In This Article:
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Net Revenue: 3.6 billion, up 18% year over year.
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EBITDA: 1.3 billion, up 26% from 1Q24.
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EBIT: 766 million, up 25% year over year.
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Net Income: 78.5 million, up 61% from 4Q24.
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Return on Invested Capital (ROIC): 12.4%, up 4.4 percentage points from 1Q23.
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Operational Fleet Growth: 10% increase.
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Rental Revenue Growth: 26% increase.
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Rental Car EBITDA Margin: 65.3%.
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GTF EBITDA Margin: 76.2%.
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Used Cars Sold: Approximately 25,000, a 7% increase from 1Q24.
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Debt Position: Gross debt at 18.9 billion; net debt at 15.9 billion.
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Leverage Ratio: Net debt to EBITDA ratio close to 3 times.
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Interest Coverage Ratio: 2.5 times.
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Movida Participacoes SA (BSP:MOVI3) achieved record high EBITDA margins in both GTF at 76.2% and rental car at 65.3%, reflecting strong operational efficiency.
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The company reported a 61% increase in net income, reaching 78.5 million, marking the highest quarterly net income in the past 10 quarters.
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Movida's operational fleet grew by 10%, while net revenue increased by 26%, demonstrating productivity gains.
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The company successfully increased the average daily rental rate by 21%, contributing to profitability expansion.
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Movida's return on invested capital improved to 12.4%, up 4.4 percentage points from 2023, indicating effective value creation for shareholders.
Negative Points
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The company faces a challenging macroeconomic environment with higher interest rates and tighter credit conditions, impacting used car sales.
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Movida's leverage ratio remains close to 3 times EBITDA, indicating a need for continued focus on deleveraging.
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The local market for funding is described as tougher, which could impact future financing conditions.
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There is a noted decrease in fleet utilization rates, dropping to 72%, which may affect operational efficiency.
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The company acknowledges the need for ongoing cost and expense reduction efforts to maintain margin improvements.
Q & A Highlights
Q: Can you elaborate on the rental car rate increases and the mix effect between occasional and monthly rentals? A: Gustavo Moscatelli, CEO, explained that the strategy focused on capital allocation between occasional and monthly rentals, with occasional rentals showing more price elasticity and profitability. Both products saw a unit price increase of about 20%, with occasional rentals slightly higher. The mix shift towards occasional rentals, which increased by 6% points, benefited the total average rate.