Net profit for Localiza, Brazil’s largest car rental and leasing company, increased 10% in 4Q21 to 442 million reais (US$87.4 million), while EBITDA increased by 24.3% to reach 935 million reais, thanks to an increase in car rental income and a decrease in vehicle depreciation.
During the quarter, vehicle depreciation was down 80.5%, or some R$46 million less year-on-year, according to the company’s 4Q21 earnings release.
As for net income, it fell by 8.3% to 2.64 billion reais. While car rental revenue increased by 30.5% to 1.3 billion reais, long-term fleet rental increased by 17.2% to 318 million reais and vehicle sales from used fell 37.4% to 2.64 billion reais.
Full year 2021
While net profit for the year jumped 95% to 2.04 billion reais, net income rose 5.8% to 10.9 billion reais.
Car rental net income jumped 39.8% to 4.4 billion reais, long-term fleet rental increased 13.7% to 1.2 billion reais and vehicle sales increased used fell 13.1% to 5.3 billion reais. Meanwhile, EBITDA for the year increased by 49.8% to 3.7 billion reais.
The company closed 2021 with 289,796 vehicles, up 4.2% from the previous year. While vehicles in the long-term fleet increased by 19.2% to 73,503 units, the number of car rental units remained the same at 216,293.
Meanwhile, Localiza is working on the final stages of acquiring the second largest car rental and leasing company in Brazil, Unidas. See more here.
Photo: Illustration by the Localiza agency (source: Localiza)