VEF

Key comments from Creditas’ release:

“In 2024 we started a new phase in our history, a phase marked by sustainable and profitable growth. Among the main achievements of Q2-24 we (i) expanded Gross Profit by 45% compared to Q2-23 to a record R$209.4mn while (ii) reducing Costs below Gross Profit expenses by 15% to R$224.4mn.

Since the end of 2023 we have been running the company with positive cash flow and we are now able to self-fund the company’s growth. We continue building on a company foundation that generates profits to reinvest in future growth, allowing the reacceleration of origination while continue benefiting from the repricing of our portfolio and the tight monitoring of its strong credit quality, maintaining profitability and sustainable margins.

With gross profit margins now at 42.4% in Q2-24 (withing the 40-45% steady-state range that we anticipated 2 years ago) we are moving the company to a target annual growth rate of 25%+ in the following years, while remaining profitable. In this new phase we will prioritize our technology investments in user experience as a mechanism to grow efficiently and deliver a best-in-class onboarding process for our customers.

Q2-24 already shows the transition to this new phase with the first portfolio growth since Q1-23 to R$5.7bn built on originations of R$694.6mn (+16.5% sequential growth). At R$493.5mn in revenues, Q2-24 is our second highest revenue quarter ever (R$497.3mn in Q2-23) while reaching record gross profit of R$209.4mn (R$144.8mn in that same quarter of 2023).”

The full release is available on Creditas’ investor relations webpage and can be accessed at the following link: https://ir.creditas.com/ir/financial-information