CVC Brasil Operadora e Agência de Viagens (CVCB3) Q4 2024 earnings summary

Executive summary

• Achieved record 301 new store openings in 2024, including 260 CVC Lazer stores in Brazil and up to 39 Almundo stores in Argentina, returning to the top 10 largest franchises in Brazil.

• Adjusted net profit reached R$54 million in 2024, the best since 2018, reversing a R$238.3 million loss in 2023 and marking a R$292 million year-over-year improvement.

• EBITDA doubled to R$389 million in 2024, with a 29% margin, despite negative impacts from floods in Brazil and a drop in Argentina.

• B2C bookings grew 18.5% and B2B bookings grew 17% in Q4 2024 year-over-year, outpacing the domestic market's 6% passenger growth.

• Free cash flow generation before interest was R$185 million, a turnaround of R$646 million from 2023.

Financial highlights

• Net revenue for 2024 was R$1.34 billion, up 3.8% year-over-year, with a take rate increase from 8.5% to 9.3%.

• Q4 2024 EBITDA reached R$108 million, up 25% year-over-year; Brazil's EBITDA grew 124% in Q4.

• G&A to net revenue ratio dropped from 61.1% in 2023 to 51.5% in 2024, with a R$40 million reduction in absolute G&A expenses.

• Net debt reduced by R$173 million year-over-year to R$241 million at end-2024, with leverage at 0.6x net debt/EBITDA, the lowest since debenture issuance.

• Free cash flow generation in Q4 2024 was R$89.3 million, reflecting improved working capital.

Outlook and guidance

• Expecting continued growth in all business units in 2025, with Argentina leading recovery, followed by B2B and B2C.

• Store expansion to continue, focusing on smaller towns and conversion of local agencies to the brand.

• Technology and innovation investments to accelerate, leveraging partnerships with Amadeus, Oracle, and CIT.

• Management focused on growth, innovation, profitability, risk mitigation, and further deleveraging.

• Positive momentum in Brazil and gradual recovery in Argentina expected to support future performance.