Release Date: March 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- CVC Brasil Operadora e Agencia de Viagens SA (BSP:CVCB3, Financial) achieved a significant milestone by opening 301 new points of sale, including 260 CVC stores in Brazil, marking a 25% increase in their footprint.
- The company reported a 20% growth in Confirmed Bookings in Brazil for Q4 2024 compared to Q4 2023, with B2C growing by 18.5% and B2B by 17%.
- CVC Brasil Operadora e Agencia de Viagens SA (BSP:CVCB3) achieved the highest adjusted net profit since 2018, with a positive BRL54 million, reflecting a significant improvement from the previous year.
- The company reported a 100% increase in EBITDA year-on-year, reaching BRL389 million in 2024, despite challenges such as floods in Brazil and economic difficulties in Argentina.
- CVC Brasil Operadora e Agencia de Viagens SA (BSP:CVCB3) successfully reduced its leverage from 2.1 times EBITDA to 0.6 times EBITDA over the last 12 months, indicating improved financial health.
Negative Points
- The Argentine market faced a 32% drop in revenue during 2024, impacting overall performance despite signs of recovery towards the end of the year.
- The company experienced a significant drop in EBITDA in Argentina, from BRL40 million in Q4 2023 to BRL4.3 million in Q4 2024, due to economic challenges.
- CVC Brasil Operadora e Agencia de Viagens SA (BSP:CVCB3) faced a negative impact of BRL140 million due to shorter payment terms imposed by IATA, affecting working capital.
- Despite growth in B2B and B2C, the company anticipates that maintaining the high growth rate of 18.5% in B2C for the entire year of 2025 may be challenging.
- The company had to manage increased financial expenses due to debt prepayment and changes in IATA payment terms, which could affect future financial performance.
Q & A Highlights
Q: What is the expected working capital for 2025 considering the impact of exclusive products and IATA's shorter payment terms?
A: (Fabio Godinho, CEO) The working capital for 2025 is expected to be better than in 2024. Exclusive products will continue to grow, and Argentina will contribute positively. Despite the negative impact of BRL140 million due to IATA's shorter payment terms, the overall working capital situation should improve.
Q: What are the expectations for same-store sales and new store openings in 2025?
A: (Fabio Godinho, CEO) Same-store sales growth is expected to be around 7% for 2025, with an acceleration throughout the year. For new store openings, the company plans to open around 100 new stores, focusing 80% on smaller towns, although this is fewer than the 250 stores opened in 2024.
Q: How do you view the growth prospects for B2B, B2C, and Argentina in 2025?
A: (Fabio Godinho, CEO) Argentina is expected to see significant growth, exceeding expectations. B2B is also performing strongly, with Rextur Advance gaining leadership. B2C faced some challenges with airline price increases but is expected to grow, with Argentina leading the growth, followed by B2B and B2C.
Q: Can you explain the higher financial expenses and what to expect in the future?
A: (Felipe Gomes, CFO) The higher financial expenses in Q4 were due to debt prepayment and the impact of IATA's payment term changes. In 2025, if there are no extraordinary debt amortizations, the level of anticipated receivables will reduce, returning to late 2023 levels.
Q: What is the impact of IATA's payment term reduction, and how does it affect CVC's market share in B2C?
A: (Felipe Gomes, CFO) The IATA payment term reduction is a global change and will continue. CVC's market share in B2C is growing, with Q4 2024 showing an 18% growth in Confirmed Bookings compared to the market's 5-6% growth, indicating a gain in market share.
Q: How will CVC manage working capital and debt costs in 2025?
A: (Felipe Gomes, CFO) Working capital will be maintained through the growth of exclusive products and preferred hotels. The company plans to continue reducing debt, focusing on prepaying debentures due to more attractive rates for receivables anticipation.
Q: What are the prospects for market consolidation and M&A opportunities?
A: (Fabio Godinho, CEO) The market is trending towards consolidation, especially in digital and physical stores. CVC is gaining market share and is open to M&A opportunities, continuing to monitor the market for potential acquisitions.
Q: What are the strategic priorities for CVC in the coming years?
A: (Fabio Godinho, CEO) CVC will focus on accelerating growth in B2C, B2B, and Argentina, investing in technology with partners like Amadeus, and leveraging its competitive edge in technology over the next three years.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
