Movida (MOVI3) presented a financial performance below expectations in the fourth quarter of 2023, with a net loss of R$105 million.
According to XP Investimentos, which projected a loss of R$79 million, this result was mainly influenced by high levels of depreciation in both the Rent a Car (RaC) and Fleet Rental segments.
The broker highlights that, despite this, the continued positive performance of Fleet Rental, with an 8% increase in EBITDA compared to the previous quarter. “In addition, Movida recorded a reduction in the recoverable value of the RaC fleet, which provides a more solid base for the year 2024. It also reported more favorable unaudited results for January and February 2024, with a net profit of R$ 21 million, compared to the loss of R$24 million in the same period in 2023”, highlights the bank.
On the positive side, highlights include the strong performance of fleet rental, with an increase in net revenue and volume, and indications of improvement in operational results for the next period. “However, Movida faced challenges, such as the poor performance of Used Cars and the RaC segment, in addition to high levels of depreciation. The company ended the period with a gross debt of R$15 billion and a leverage of 3.1x net debt/adjusted EBITDA, close to the established covenant of 3.5x”, highlights XP.
Movida (MOVI3)
Movida is a Brazilian company in the vehicle rental and fleet management sector. Founded in 2006, the company is part of the JSL Group, one of the largest logistics and transport conglomerates in the country. Movida operates by offering car rental services to individuals and companies, including light vehicles, utility vehicles, trucks and luxury cars.
In addition, the company also offers outsourcing and fleet management solutions for companies. With a diverse fleet and presence in several Brazilian cities, Movida is recognized for the quality of its services and innovation in its segment.
