CVC improves results, but scenario is difficult, say analysts

In recent years, the company has faced an unfavorable scenario due to the pandemic, which hit the tourism sector hard (Image: Money Times/Renan Dantas)

The dismissal of one hundred employees, equivalent to 3% of the group, made 15 days ago in the midst of a negotiation process to postpone the payment of a debt drew – once again – the market’s attention to the situation of CVC.

The company has faced, in recent years, an unfavorable scenario due to the pandemic, which hit the tourism sector hard, in addition to a crisis resulting from accounting errors that reduced the accumulated net revenue between 2015 and 2019, by an estimated R$ 362 million .

Today, the real situation of CVCaccording to analysts, is from a company that was already heavily indebted even before the pandemic, which is restructuring itself, improving results, but still facing difficulties due to financial expenses, increased by the high basic interest rate, and the lack of population money.

“My overall view of the company is positive. But, in retail, there are better options (of companies to invest in) today, which are less indebted”, says analyst Victoria Minatto, from Eleven Financial Research. “In the short term, I still see the company suffering a lot. Sales are picking up, but demand is uncertain because of the economic backdrop.”

IT cuts

the president of companyLeonel Andrade, says that the dismissals occurred mainly in the IT area, after the conclusion of projects to integrate companies that CVC had acquired.

He also says that the company is up to date with its payments and that the debt has decreased from R$ 2.2 billion, before the pandemic, to R$ 900 million. According to him, the debt had been incurred, above all, between 2015 and 2019, a period in which the company made nine acquisitions.

Of the R$900 million owed, 74% are due in April. The intention, according to the executive, is to reschedule the debt.

Unlike analysts, who are still concerned about demand due to the country’s economic prospects, Andrade is confident.

He says that demand for travel continues to grow after consumers have been at home for two years because of the pandemic. “I can only be optimistic. We are selling, people are traveling again, the company is intact, I have reduced the debt, our investments have been made.”


With the increase in demand, confirmed bookings from CVC reached BRL 10.5 billion in the first nine months of last year, an increase of 77% compared to the same period of 2021. Even so, the company had a loss of BRL 337 million, down 1.2%.

On the operational side, analysts claim that the company has been moving in the right direction, even if the changes are not enough to guarantee success in the midst of the turbulent scenario.

Among the main changes made since 2020 is the acceleration of the digitization process, which started late at CVC. When several retail companies had already turned into a digital marketplace, the company was still in its infancy in this transformation.

It was only in 2018 that CVC began to prepare itself to be able to offer products according to the taste of each customer based on information collected in the digital universe.

With experience in this area, Andrade, who had previously commanded Smiles, fueled the company’s transformation. “In one or two years, we will have all this digital capacity that others have or even better, because whoever is born later will buy new and better things”, says the executive.
The information is from the newspaper The State of S. Paulo.

Source: Moneytimes

Share this article:

Leave a Reply

most popular