QUALICORP CONSULTORIA E CORRETORA DE SEGUROS S.A. Qualicorp: 1Q24 Results
Public Presentation to Investors on May 09, 2024
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Disclaimer
Forward-looking statements
This presentation may contain forward-looking statements concerning the business outlook, estimates of operating and financial results and growth prospects of Qualicorp. These statements are based exclusively on the expectations of the management of Qualicorp. regarding the prospects of the business and its continued ability to access capital markets to finance its business plan. These forward-lookingstatements are highly sensitive to changes in the capital markets, government regulations, competitive pressures, the performance of the industry and the Brazilian economy and other factors, as well as to the risk factors highlighted in documents previously filed by Qualicorp, and therefore are subject to change without prior notice.
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Opening and Highlights
Maurício Lopes - CEO
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Highlights
Capital Allocation and Operational Efficiency:
- Value capture evidenced in Fixed Expenses;
- Variable Expenses in the implementation process;
- Maintenance of strong cash flow generation; Portfolio Management:
- A more assertive acceptance process to improve sales quality;
- More sustainable products for the business model;
- Expansion of products to be distributed in the coming quarters.
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1Q24 Performance
Carlos Vasques - CFO
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Financial Performance
When analyzing the last two years, we see that even with a drop of ~35% in the lives base, efforts were made that
culminated in a reduction in revenue of ~20% and ~19% in Adjusted EBITDA -CAC...
Managed Portfolio & Gross Adds
Net Revenue
1,153.1
115.2 961.5
753.4
Lives Portfolio: 753.4 thousand in the
502.2 | 457.3 | 403.7 |
63.6
49.6
1Q221Q231Q24
Churn
10.7% | ||||||
10.3% | 10.3% | |||||
1Q221Q231Q24
Affinity Managed Portfolio in 1Q24, with gross adds of 49.6 thousand lives and stable Churn.
Net Revenue: R$403.7 million in 1Q24, with a slight improvement in the average ticket and the impact of a reduction in the lives base.
Adj. EBITDA (-) CAC: R$152.9 million in 1Q24, a 37.9% margin (+6.0 p.p. vs. 1Q23).
1Q22 1Q23 1Q24
Adj. EBITDA - CAC
37.5% 31.9% 37.9%
188.2 146.1 152.9
1Q22 1Q23 1Q24
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Recurring Costs & Expenses
... supported, above all, by a strong adjustment of cost structures, aimed at greater operational efficiency, as well as optimization in the capital allocation.
Total recurring: R$215.1 million in 1Q24, -13.0% vs. 1Q23;
Fixed : R$104.8 million in 1Q24, -30.3% vs. 1Q23; Variable: R$110.3 million in 1Q24, +14.1% 1Q23.
Recurring Fixed Expenses (R$ MN)
Recurring Variable Expenses (R$ MN)
Organic CAC/Net Revenue (%)
33.4%32.9%
28.8% 26.0%
167.5150.4
104.8
27.3%
21.1%
16.3%
81.9 | 96.7 | 110.3 |
12.9%
14.0%
8.9%
1Q22 | 1Q23 | 1Q24 | |
Fixed Expenses (R$ MN) | % of Net Revenue | ||
1Q22 | 1Q23 | 1Q24 | |
Variable Expenses (R$ MN) | % of Net Revenue | ||
1Q22 | 1Q23 | 1Q24 |
Organic CAC/Net Revenue (%) | ||
- Fixed expenses fell substantially 30.3% compared to the same period in 2023, representing 26.0% of net revenue. Normalized, totaled R$116.8 million (-22.3% YoY) and 28.8% of net revenue;while variable expenses increased 6.2 p.p..
- After an initial focus on internal expenses, we turned our eyes to partner negotiations aimed at capturing value in variable expenses, as part of our turnaround strategy.
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Cash Generation & Indebtedness
We kept a quarter with strong operating cash generation, which continues to contribute to reducing leverage by R$269 million.
Free Cash Flow (before debt (principal & interest) and dividends): $111.0 million, with Adj. EBITDA-CACconversion into Free Cash of 73%;
- Reduction of 19.0% in Net Debt vs. 1Q23 to 1.53x leverage;
- Robust cash at the end of 1Q24, reaching ~R$1.13 billion.
Managerial Cash Flow | 1Q24 | 4Q23 | 1Q23 | LTM |
EBITDA | 185.5 | 97.8 | 205.6 | 572.8 |
Non cash adjustments | 9.3 | 39.5 | (2.8) | 154.9 |
Leasing payments | (3.9) | (4.2) | (4.9) | (17.6) |
Commisions over sales (CAC) | (35.8) | (32.7) | (64.2) | (157.7) |
Taxes Paid | (9.4) | (14.5) | (5.7) | (50.8) |
Changes in Working Capital | (25.0) | 4.6 | 28.8 | 7.3 |
Cash Provided by Oper. Activities | 120.7 | 90.4 | 156.8 | 508.8 |
Capex (Intang. + PP&E) | (7.6) | (8.1) | (13.9) | (46.2) |
Operating Cash Flow after Capex | 113.1 | 82.3 | 142.9 | 462.6 |
Acquisitions portfolio/companies | (2.1) | 27.1 | (2.5) | 19.5 |
Free Cash Flow (Operating) | 111.0 | 109.4 | 140.4 | 482.1 |
1.59x | Net indebtedness* | |
1.58x | ||
1,418 | 1.53x | |
1,220 | 1,149 | |
1Q23 | 4Q23 | 1Q24 |
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* (Gross Debt - Cash & Cash Equivalents) / LTM Adjusted EBITDA
Q&A
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Disclaimer
Qualicorp Consultoria e Corretora de Seguros SA published this content on 08 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 May 2024 00:02:05 UTC.
