Release Date: March 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Adjusted net income increased by 57% compared to 2023, reaching BRL780 million.
- Adjusted EBITDA grew by 32% year over year, reaching BRL3.4 billion.
- Record sales of used vehicles, totaling BRL705 million, up 34% from the previous year.
- Strong cash position with plans to renew and extend contracts using existing assets, reducing the need for new capital.
- Vamos accounted for 59% of all truck registrations by leasing companies in Brazil, showcasing its competitive advantage.
Negative Points
- The spinoff of the dealership segment resulted in a nonrecurring tax credit loss of BRL238 million.
- Consolidated ROIC declined to 15.6% in 2024, compared to the previous year.
- Leverage for covenant purposes increased to 3.3 times, up from the previous year.
- Asset repossession due to early lease terminations impacted revenue and fleet utilization.
- Depreciation rates are expected to increase due to the acquisition of new Euro 6 assets at higher price points.
Q & A Highlights
Q: Regarding asset repossession, you mentioned up to 5% of fixed assets could be repossessed in 2025. Given the exposure of agriculture in the Midwest is 2.7% of your revenue, should we expect something closer to 3% than 5% in fixed assets for 2025? Also, can you elaborate on the better monthly yield?
A: Asset repossession was given as a reference due to long-term contracts. The peak in repossession was due to grain transportation, and exposure to this sector has decreased. We expect stabilization at lower levels, around 5% or less. Regarding yield, it reached 2.8% due to maintenance contracts, but IRR is a better measure. We aim for an IRR of 20% to maintain a healthy spread in the leasing segment.
Q: What is your outlook on used vehicle margins and depreciation for 2025?
A: Used vehicle margins are expected to gradually decrease as assets appreciated and depreciation rates were adjusted. The focus is on leasing revenue rather than asset sales. Prices of new vehicles are stable, with OEMs announcing price increases, which may affect used vehicle prices. Depreciation will grow due to an increase in assets and higher depreciation rates for new Euro 6 products.
Q: Can you provide more details on the BRL38 million revenue line outside the segment and any non-recurring items in the financial results?
A: The BRL38 million relates to adjustments for consolidation purposes, including eliminations between segments. The financial results reflect the new debt profile and interest curves, with no significant non-recurring items to highlight.
Q: Regarding the recent debt issue at 100% of CDI, can you provide more details on its structure and future issuance expectations?
A: The debt issue was closed with a syndicate of banks, structured to protect against exchange rate fluctuations, with costs close to 100% of CDI. The amount raised exceeds our needs for the year, allowing us to manage debt better and seek market opportunities for improved debt profiles.
Q: Can you discuss contract extensions and their impact on average contract terms?
A: Contract extensions, especially for trucks, are viable and beneficial due to high new truck prices and interest rates. Last year, 58% of expiring contracts were extended. We aim for BRL700 million in extensions this year, which will generate additional revenue and profitability while reducing the need for new truck purchases.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
