Rumo, BMG, and Vivara: A Tale of Three Companies With Strong Results in Q3 2024

Rumo, the Brazilian logistics giant, has achieved a remarkable milestone in its financial history. The company reported an adjusted net profit of R$ 794 million ($139.3 million) for the third quarter of 2024.

This marks a 64.5% increase compared to the same period last year. This impressive growth stems from improved operational efficiency and increased transportation volumes.

The company’s EBITDA (earnings before interest, taxes, depreciation, and amortization) reached R$ 2.105 billion ($369.3 million), growing by 22% year-over-year.

Rumo’s net operating revenue also saw a significant boost, rising 18.2% to R$ 3.752 billion ($658.2 million). The northern operation played a crucial role in this growth, expanding by 24% due to higher tariffs and increased transport volume.

Rumo’s financial leverage improved, decreasing from 1.5 times to 1.4 times by the end of September. This reduction indicates the company’s strengthening financial position and ability to manage its debt effectively.

BMG’s Profitable Surge

BMG Bank has reported a substantial increase in its recurring net profit for the third quarter of 2024. The bank’s earnings reached R$ 116 million ($20.4 million), representing a 62.4% rise compared to the same period in the previous year.

This growth reflects the bank’s strategic focus on improving its financial performance. The bank’s net interest margin after credit costs grew by 17.9% to R$ 813 million ($142.6 million).

This improvement contributed to an enhanced return on average equity (ROAE), which advanced to 11.6%. BMG’s total credit portfolio expanded by 4.4% year-over-year, reaching R$ 25.2 billion ($4.4 billion) at the end of September.

BMG’s credit origination for payroll and retail products saw a significant increase of 56.1%, totaling R$ 2.7 billion ($473.7 million).

The bank’s focus on products with guarantees has led to a decrease in the default rate for loans overdue by more than 90 days, which fell by 0.9 percentage points to 4.7%.

Vivara’s Shining Performance

Vivara, the Brazilian jewelry retailer, has reported impressive financial results for the third quarter of 2024. The company’s net profit soared to R$ 107.2 million ($18.8 million), marking a 40% increase compared to the same period in the previous year.

This growth was driven by strong operational performance and recognition of tax credits. The company‘s EBITDA reached R$ 149.694 million ($26.3 million), a 23.6% increase from the third quarter of 2023.

Vivara’s adjusted EBITDA grew even more significantly, rising by 43.7% to R$ 127.3 million ($22.3 million), with a margin of 22.6%. This improvement reflects the company’s operational leverage and revised marketing and event expenses.

Vivara’s net revenue for the quarter stood at R$ 562.9 million ($98.8 million), representing a 23.1% growth compared to the same period last year.

This increase was driven by same-store sales growth of 13.5%, expansion of points of sale, and growth in digital sales. The company ended the period with a net cash position of R$ 83 million ($14.6 million), up from R$ 33 million ($5.8 million) at the end of 2023.

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