Vamos (), a truck, machinery and equipment rental company, controlled by Simpar (), reported consolidated net profit of R$175.1 million in the third quarter of 2024. The figure is 51.2% higher than that recorded a year earlier .
Earnings before interest, taxes, depreciation and amortization (EBITDA) in the period totaled R$868.2 million, with growth of 27.2% compared to the third quarter of 2023.
Between July and September this year, the company’s consolidated net revenue reached R$1.975 billion. The figure is 33.3% higher than that recorded in the same period in 2023.
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The company’s leverage measured by the net debt and EBITDA ratio fell to 3.21 times.
“The trend is to continue the deleveraging trajectory in 2025”, stated Gustavo Couto, CEO of Vamos, in an interview with InfoMoney.
According to the executive, the company has an Ebitda generation that allows the company to maintain a consistent growth rate, with less need for new capital, at a time of resumption of the high interest cycle in Brazil.
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“Net debt will continue to grow, but at a much slower pace than the historical growth”, he signaled.
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The company’s main business division grew 35%
The rental business, core business from Vamos, brought revenue of R$1.131 billion in the quarter, 35% more than a year before.
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The amount includes revenue of R$923.8 million from services, which had annual growth of 32.9%; and R$207.5 million from pre-owned assets, which broke a record in the period, according to the company, with growth of 45.6%.
The rental unit’s EBITDA increased 25.1% compared to the third quarter of 2023, to R$842.8 million.
“We have a business protected from changes in interest rates”, says the CEO. He explains that most of Vamos’ rental contracts are readjusted according to inflation and new contracts always take into account the future interest curve, over a five-year horizon – the duration of the contract.
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“The customer tends to pay a little more for the rental. On the other hand, it is much cheaper than buying”, says Couto.
Dealers show recovery
The dealership portion of the company, which was a detractor, showed signs of recovery. The division’s net revenue totaled R$765.4 million, an increase of 30.5% compared to a year ago. Ebitda, in turn, totaled R$19.9 million, compared to a negative performance of R$0.9 million in the same period in 2023.
The company states that the truck dealership sector operates with favorable dynamics, while the agribusiness sector is still on a slow recovery path. The crop failure due to the weather, combined with the drop in the price of commodities while fertilizers became more expensive, farmers practically stopped purchasing agricultural machinery.
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“It was a very violent blow to the machinery industry in general”, admits Couto. On the other hand, the executive says that “no one doubts that agriculture will continue to grow and develop” and that this is just “a temporal issue”.
The CEO does not believe that provisions for doubtful debts (PDD) will grow again, as occurred in the second quarter, claiming that the company anticipated provisioning accounts that had not yet matured. “The matter was addressed in the second quarter and now we are back to normal.”
Couto explained that the company reduced costs in all lines of business at dealerships and stopped purchases of new agricultural equipment and machinery.
“The main austerity measures that we needed to improve the results of agricultural concessionaires have already been taken,” he stated.
“If the market already had demand as we would like or as we have seen in the recent past, these numbers would be much better,” he stated.
Waiting for a “spin off”
into a separate company was proposed by the controlling company, Simpar, but it still needs to be evaluated by Vamos’ board and have the approval of its shareholders. According to the CEO, the operation will bring a much greater focus to the company’s main business. Vamos would operate exclusively in B2B (service to companies), without having to manage a business that has more of a retail profile, operates with low working capital and has lower margins.
“With a company 100% focused on allocation, we will be able to form alliances with other product brands. Today, because we are also a dealership, this is somewhat limited”, explains Couto. “We will gain freedom of action.”
Likewise, the executive says that a “pure blood” company in dealerships gains more capacity to identify moments of adversity in the market.
Spreadsheet
3rd quarter results
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