Q2 2024 Localiza Rent a Car SA Earnings Call (English, Portuguese) Transcript
Key Points
- Localiza Rent A Car SA (LZRFY) reported a 16.1% growth in rental revenue for the second quarter of 2024, demonstrating strong demand despite challenges such as deep floods in Rio Grande do Sul.
- The company achieved a 12.9% year-over-year increase in the average daily rental rate, reflecting effective pricing strategies.
- Localiza Rent A Car SA (LZRFY) expanded its branch network to 681 branches, including 17 agency branches in Mexico and 157 franchises in Brazil, indicating growth in market presence.
- The fleet management division saw a 27.2% year-over-year increase in revenue, showcasing healthy management of new contracts and rationalization processes.
- The company sold 69,316 cars in the second quarter, a 31.5% increase year-over-year, with an average selling price increase of 9.2%, highlighting improved sales performance and mix of cars sold.
- Localiza Rent A Car SA (LZRFY) faced significant depreciation impacts, with an additional depreciation impact of BRL1,386 million compared to the first quarter, affecting overall profitability.
- The company reported a negative EBITDA margin of 0.8% for the Seminovos division, indicating challenges in the used car market.
- The floods in Rio Grande do Sul resulted in the loss of approximately 2,000 vehicles and eight branches, leading to an impact of BRL103 million.
- The company experienced a negative net income of BRL570 million for the quarter, driven by increased depreciation and impairment costs.
- Localiza Rent A Car SA (LZRFY) is still undergoing integration processes, including system integrations and back-office adjustments, which are expected to continue impacting margins until the second half of 2025.
Welcome to the earnings disclosure for the second quarter of 2024. We have with us Bruno Sebastian Lasansky, our CEO; Rodrigo Tavares Goncalves De Sousa, our CFO. Before we begin, I'd like to inform you that this is being recorded and will be available on our ri.localiza.com, where we have all the material for the earnings release.
The presentation is also available for download on the IR website. We would like to inform you that the amounts in this presentation, millions of reals and in IFRS. We emphasize that the information contained in this presentation and any statements that may be made during the video conference regarding to Localiza's business prospects, operating and financial projections and goals constitute the beliefs and assumptions of company management as well as information currently available.
Forward-looking considerations are not guarantees of performance as they involve risks, uncertainties, and assumptions as they refer to future events and therefore, depend on circumstances that may or may not
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