Simpar wants to earn BRL 35 billion in 20

Simpar – the holding company that controls JSL, Movida and Vamos – said today that it expects to earn BRL 35 billion by 2024, more than double the BRL 15.4 billion last year.

The stock is up 7% mid-afternoon.

The company controlled by the Simões family provided consolidated gross revenue guidance at Simpar Day – the annual investor event.

The company said the projection incorporates Simpar’s average growth – of 20% per year over the last 12 years – as well as taking into account the market potential of its subsidiaries and growth through M&As. Vamos – the company’s subsidiary that operates in the leasing of trucks, machinery and equipment – said that its fleet will grow six times by 2025. Movida and JSL – which focuses on road logistics – reaffirmed the guidance for 2025 passed in Simpar Last year’s day Movida projects a fleet two to three times larger, which would represent between 260,000 and 340,000 cars and profit between R$1.3 billion and R$1.6 billion. JSL expects to grow up to 3 times its gross revenue, to around R$10.8 billion. In addition to the three companies listed on the Stock Exchange, Simpar also controls four other companies: CS Brasil, which provides transport and urban cleaning services for public bodies; CS Infra; the BBC Digital Bank; and Automob, the new name of Original Concessionárias, which has grown with an aggressive M&As strategy. “We have at least one or two assets with IPO potential by 2025,” Simpar CFO Denys Marc Ferrez said at the event. The CFO commented on Simpar’s holding discount in relation to the implied value of its businesses, currently around 36%. “When you look at the performance of a share on the stock market, you measure it from the IPO, but when we look at the performance of companies created by Simpar on the stock exchange, we look at the equity value that the group has placed. We look at the investment in the assets and development of these companies, Movida had, at today’s prices, 541% of value creation; at Vamos, it was 1,752% and at JSL, 254%.” Simpar is worth R$ 10 billion on the stock exchange. JSL also announced today the purchase of Truckpad – a startup that connects truckers and hauliers through an app – to accelerate its digital development.

Source: Brazil Journal