Localiza will increase the acquisition of cars from the current quarter, citing greater supply from automakers, which are also making available a greater number of economy models, more used in the company’s business.
“In the second quarter there was a greater purchase of ‘premium’ cars (with engines above 1.0), they are cars that have less flexibility for us”, said the finance director, Rodrigo de Sousa, in a conference call with analysts.
The company announced the night before a slight increase in net income compared to the second quarter of 2021, a performance that has not yet included data from Unidas, with whom Localiza concluded a business combination in early July.
“For the second half, the combined purchase plan of the two companies is much heavier in relation to economy cars (1.0)”, added the executive.
“We are going to start renewing the fleet at a more favorable moment, with production resumption, a more favorable mix (pending on the popular) and with retail showing signs of challenge,” said Sousa.
As a result, Localiza should begin this quarter a gradual process of reducing the average age of the fleet, which tends to continue in 2023.
In recent months, the average age of the company’s fleet has risen in the face of automakers’ problems in vehicle delivery in the face of the crisis in receiving auto parts and electronic components.
The rising average age of vehicles means more maintenance costs.
The executive stated that Localiza only had access to Unidas’ complete numbers in July, after the merger was concluded, and that the group should disclose medium and long-term planning at a meeting with investors in the fourth quarter.
Synergy estimates were not reported.
In parallel with the purchase of more new cars, Localiza should receive a considerable cash boost at the end of the year from the sale of 49,000 cars, in addition to part of Unidas’ stores and brands, to Ouro Verde, which should help the company in the fleet renewal process, executives said.
Source: CNN Brasil
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