With shares down 10.7%, Simpar's market value totals R$ 8.6 billion
Simpar couldn't be happier with its subsidiaries than it was this quarter. With Movida recording the highest EBITDA in its history and Vamos showing net revenue 66% higher than that recorded in the same period in 2021, the holding company took a leap forward in terms of results.
In the third quarter, Simpar's main operating lines broke records. Gross revenue rose 73%, to R$ 7.6 billion, compared to the same period in 2021. EBITDA in the quarter reached R$ 1.9 billion, up 66% year-on-year.
In annualized terms, gross revenue totaled R$ 30.3 billion, practically double that seen in 2021, when gross revenue closed the year at R$ 15.4 billion.
Denys Ferrez, Simpar's financial director, says that the performance in the third quarter shows a resilient company with the capacity to grow, with the subsidiaries maintaining their operational performance despite the economic circumstances.
"As we are fundamentally a contract-based company, our revenue and cash generation are very resilient," Ferrez told NeoFeed. "I often say that it's almost like building a wall, you keep putting one little brick on top of another and it keeps growing."
At Movida, Ebitda totaled R$ 925.3 million in the third quarter, 51% higher than in the same period last year. Most of this amount - R$ 789.1 million - came from the rental side, which managed to raise the average rental ticket by 44.2%, demonstrating that the company's thesis has gained traction among consumers.
Acceptance was also seen at Vamos, as can be seen in the so-called backlog, which represents future contracted revenue. In the third quarter, it totaled R$ 12.6 billion, an increase of 103.7% compared to the same period in 2021 and 16.6% compared to the second quarter.
In addition to the good results from both, Simpar also managed to capture gains from JSL, its oldest company, which in the third quarter had the best performance in its history, with a 51% increase in EBITDA and a 36% advance in gross revenue, both on a year-on-year basis.
Simpar also has smaller companies under its umbrella, such as CS Infra, which operates in infrastructure concessions, Automob, a dealership company, and BBC, which provides financial services.
Although the companies' operating performance was positive, Ferrez points out that "it wasn't all party time" in the third quarter.
Simpar recorded a 71% drop in net profit, to R$ 111 million. According to the financial director, the company was hurt by the financial line in the quarter.
"There's a challenge between operating profit and net profit, which is this new interest rate environment, which is accompanied by the inflation we're experiencing," he says. "The average CDI in the third quarter was practically triple what it was in the previous quarter."
Another highlight of Simpar's balance sheet was its financial leverage. The ratio between net debt and EBITDA reached 3.5 times in the third quarter. The figure represents a drop from 3.6 times in the second quarter, but is not a level considered comfortable by analysts.
The company pointed out in its balance sheet that the Ebitda for the last 12 months does not fully reflect the investments made in the period, in the order of R$ 13 billion, to expand the business. Ferrez points out that if the EBITDA for the third quarter were annualized, the leverage would be 3.1 times.
"It's what we call the running rate to show that, if we stay at the size we are, the leverage is 3.1 times," says the financial director. "The point is that growth is discretionary, and then we make [investments] when we have opportunities, for the benefit of the businesses we are involved in."
Even so, he says that the group is committed to gradually bringing leverage down, measured against the previous year's close. In this case, to 3.4 times. "All the companies have done their homework, with discipline in capital allocation, in the search for more productivity," says Ferrez.
Simpar shares closed the trading session on Wednesday, November 9, down 5.87%, at R$ 9.94. For the year, they have fallen by 10.7%, bringing their market value to R$ 8.6 billion.