Vamos (VAMO3) has a record profit of R$ 142.5 million in the 2nd quarter; CFO highlights inventories as the company’s competitive advantage

Truck and agricultural machinery leasing company Vamos (VAMO3) posted record net income of R$142.5 million in the second quarter of 2022 (2Q22), beating market projections of R$132.79 million, according to the Refinitiv consensus. The number represented an increase of 42.4% compared to the same period in 2021 and, according to the company, is the result of strong organic growth in the main business segments with a focus and discipline in execution.

Earnings before interest, taxes, depreciation and amortization (Ebitda) was R$450.4 million, 77.5% higher than 2Q21 and also higher than expected by the market consensus, of R$404, 34 million. Revenue also exceeded expectations of R$1.009 billion, reaching R$1.199 billion, 80.1% higher on an annual basis.

Gustavo Moscatelli, the company’s CFO, highlighted in an interview with InfoMoney that the company has managed to bypass the high cost scenario, including transforming this general difficulty in the market into a competitive advantage for the company.

Machinery and truck production restrictions continue in the market with production bottlenecks putting pressure on vehicle values. However, the stocks formed by the company ensure that the company has vehicles at lower prices, which also guarantee more competitive prices in the market.

“It’s a competitive differentiator today. We are not suffering like the market as a whole because our vehicle purchase model is very early, all negotiations with automakers for the purchase of machines for this year were made last year”, evaluates Moscatelli.

The company currently has BRL 1.8 billion in asset inventories, of which BRL 500 million are confirmed contracts and will be implemented in the coming weeks.

“The remaining R$ 1.3 billion form a competitive advantage and a capacity for prompt delivery that is unique in our sector. This strategic inventory, when leased and delivered to our customers within a few months, has the potential to generate revenue close to R$50 million per month and a backlog (future revenue) of around R$3 billion, if we project the levels yield and average term of our new contracts”, highlighted the company in its earnings release. There was an improvement in the profitability of assets in inventory, with the market value of the assets 37.7% higher than the acquisition value.

The rental company’s CFO also highlighted, among the positive events of the quarter, the upgrade of the credit rating by Fitch Ratings to ‘AAA’, which, according to him, will allow for a further improvement in the cost and debt profile, which is especially important for a company capital intensive.

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Moscatelli assesses current leverage levels, with a net debt and Ebitda ratio of 3.26 times, as comfortable, in addition to closing the quarter with R$2.8 billion in cash and a long-term debt maturity schedule. In this scenario, he highlights that the company’s focus continues to be organic growth, and that the recent acquisitions made by Vamos, the latest being that of Truckvan, for the production and customization of road implements for heavy vehicles, are complementary to the company’s current business. .

Looking at the company’s business segments (rent and sale of used trucks and agricultural machinery) and the prospects ahead, the executive believes that the truck segment should continue as a catalyst, but there are other business fronts with very strong prospects. positive.

“Trucks is the addressable market and it is our DNA. But if you look at other markets, agricultural machinery, heavy yellow line, forklifts, all have very expressive growth opportunities in our view. Agricultural machinery, for example, is practically a market that has no lease. Today there are several lines of action with different assets and all are avenues for growth”, points out the executive.

In this sense, in the last quarter, the company inaugurated in the city of Rio Verde (GO) the largest dealership of agricultural machinery of the German brand Fendt in the Americas, which will receive the EDGE seal of sustainability, marking the organic expansion of Vamos in agribusiness.

Overall, Moscatelli points out that Vamos’ case base remains very solid, with Brazil still counting on a lot of space for fleet renewal. The trucks, despite recent renovation, is still one of the oldest in the world, with an average age of 20 years.

“There is a huge need for renewal, not to mention the expansion of the fleet in many segments that are growing in the Brazilian economy. So we see opportunities to renew the fleet with our business model, leasing assets and expanding the companies’ fleet”, he reinforces.

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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