CVC (CVCB3) posted a net loss of BRL128 million in the first quarter, down 23.3% for the year

CVC Brazil (CVCB3) posted a net loss of BRL 128 million in the first quarter of 2023, a figure down 23.3% from the loss of BRL 166.8 million in the same period last year.

The tourism company’s net income, on the other hand, remained virtually stable on an annual basis, increasing from R$292.8 million to R$295.5 million – an increase of just 0.9%.

“Net revenue increased due to booking growth. However, this was partially offset by the impact on the take rate arise from the business and product mix, particularly in the Brazilian operation, with increased sales of marine products, shipments of products sold on Black Friday and lower occupancy with exclusive products,” says CVC in the document released Tuesday evening ( 9).

Selling expenses increased faster than revenue, rising from R$57 million to R$61.5 million, up 7.9%. However, G&A expenses decreased by 0.7% from R$218.2 million to R$216.6 million.

“Marketing expenses increased in the first quarter of 2023 due to the execution of incentive campaigns for high-season exclusive products and activations for off-season business, support for a differentiated pricing strategy and renegotiations with certain suppliers,” the company said. “General and administrative costs were virtually the same due to the rationalization and greater control of fixed costs.”

CVC reported earnings before interest, taxes, depreciation and amortization (Ebitda) of R$15.8 million, down 52.5% over the year.

The company ended up with a negative financial result of R$96.7 million, a figure higher than the R$88.8 million of the first quarter of 2022.

“The increase is mainly due to the impact of the increase in average CDI charged on net debt (10.3% pa ​​in Q1 2022 to now 13.7% pa) and debt prepayment fees,” explained CVC.

A large part of the difference in CVC loss year-on-year is then due to the reversal of income tax – which was negative by R$62.1 million in 2022 and positive by R$5.1 million this year. The company claims that due to the PERSE law (which targets the tourism and events sector) the rates have been set to zero with the entry of an amount to offset tax loss credits.

Related