The expansion plans of Automob, the light vehicle dealership company, are targeting gross revenue of R$ 18.3 billion and Ebitda (earnings before interest, taxes, depreciation and amortization) of R$ 1.3 billion by 2026. These are, to say the least, impressive figures for a company that has only recently gained prominence in the portfolio of its parent company, Simpar. Automob recently applied for registration as a public company with the Brazilian Securities and Exchange Commission (CVM) in category A, which would enable it to offer shares to the public. However holding, which holds a 79.4% stake in the business, says it is in no hurry to list another of its subsidiaries.
"An IPO is not an anxiety, much less an agenda," said Antonio Barreto, Simpar's vice-president of planning and management. IM Business. The holding company's executives say that Automob's application for registration was made so that the company can comply with high standards of governance and investors can follow the results that the subsidiary has been delivering.
"If, in the future, we understand that there is demand and desire, I have nothing against making this move [to carry out an IPO]. As long as it's a move to generate shareholder value and give the company more oxygen, if it needs capital to keep growing and developing," said Fernando Simões, Simpar's CEO.
"Any business of ours that has the potential to grow and transform, that needs capital, we are not opposed to listing or bringing in shareholders who will share this gain with us," he added.
Automob's expansion began in the second half of 2021, with the purchase of UAB Motors and Sagamar from Maranhão. The following year, the company acquired Autostar and Grupo Green. This year, there were three more acquisitions: Nova Quality, Grupo Alta and Best Points. The seven purchases add up to more than R$ 1.6 billion, considering the valuation of the assets disclosed at the time the transactions were made.
Simpar made a contribution of R$ 500 million so that the subsidiary could start its consolidation process. "We delivered results earlier than people expected," says Barreto. Today, Automob operates in five states (São Paulo, Paraná, Santa Catarina, Mato Grosso do Sul and Maranhão), with 108 dealerships. Turnover has grown around 12 times in the space of 18 months, with 118,000 vehicles sold in the period.
The company's annualized gross revenue was R$ 900 million in the first quarter of 2022, when Automob was still known as Original Concessionárias. By the end of the third quarter of 2023, the figure totaled R$ 9.3 billion, with a predominance of premium and luxury brands. The figure does not yet include the company's most recent acquisitions. In the same period, EBITDA rose from R$ 68.93 million to R$ 347.3 million.
Automob's projections for the next three years do not include any new contributions from investors. "The foundations for achieving these goals are already in place at Automob," said Antonio Cavalcanti, the company's CFO, during the company's investor day from Simpar. The prospects for growth are based on the potential of a market estimated at R$ 1.4 trillion and still quite fragmented.
According to Barreto, Automob will continue to look for "good companies" with growth potential, regardless of the number of stores or brands they have. Another goal is to increase the volume of used car sales.
With so much market to be explored, the light vehicle dealership business has been seen as a rough stone to be cut by Simpar and with the potential to unlock value for the company. holding. Simões recognizes that this is one of the company's main avenues for growth, but prefers not to place all expectations on just one segment.
"All of our businesses, the way we operate and the mindset that we have [...] are a rough stone that can be polished and have a lot of value to be generated," concludes the CEO.
Link to the article: Simpar forecasts R$ 18 billion in revenue for Automob in three years and leaves company ready for IPO - InfoMoney