Good morning, welcome to the conference call of Movida to discuss the earnings regarding the Fourth Quarter and Full Year of 2022. Today with us we have Mr. Renato Franklin, CEO, and Mr. Gustavo Moscatelli, CFO and IR officer. Right now, all participants are in listen only mode. Later on, we are going to start the Q&A session when further instructions will be provided. Should any of you need assistance during the conference call, please reach the operator by pressing star zero. Before moving on, we would like to let you know that any statements made during this conference call relative to the company's business outlooks, projections, operating and financial goals are based on Movida's management assumptions and beliefs and rely on information currently available to the company. Forward-looking statements are not a guarantee of performance.
They involve risks, uncertainties and assumptions since they refer to future events and therefore depend on circumstances that may or may not occur. General economic conditions, industry conditions and other operating factors may affect the company's future results and lead to results that will materially differ from the forward-looking statements. We'll now turn the floor to Mr. Renato Franklin. Please, Mr. Franklin, you may go on.
Good morning everyone, and welcome to our earnings release for the fourth quarter and full year of 2022. Today in the room we have our new CFO, Gustavo Moscatelli, that many of you know from years at Vamos. Certainly, it will great to have his energy adding to the team and setting a new phase of Movida of value generation. The results will show reinforce the scale reached by the company, setting the beginning of this new phase.
I'll invite you all to slide number three, where we bring the main highlights for the year, consolidating important transformation for Movida. I'll start with consolidated figures. We exceeded the mark of BRL 10 billion net gross revenue, a expansion of 79% compared to 2021. It's important to notice that expansion shows in all business lines. Our fleet increased by 20% year-on-year, reaching 224,000 cars. Movida's EBITDA evolved 71% in 2022 compared to 2021, reaching BRL 3.6 billion. EBIT was BRL 2.4 billion in the year. The execution of our strategy brought us to new levels in the rental car segment in the second column. The newest fleet in Brazil with 112,000 cars. Net revenue of BRL 2.8 billion in the year, growth of 61%.
EBITDA increased even more, showing our commitment with gains of efficiency and margin. 87% supporting new levels of profitability. We continue investing in infrastructure, adding 241 new 34 new stores and expanding our coverage to 100 cities. We have the infrastructure ready to reap the fruits of value creation. As of this quarter, we are going to consolidate also the numbers of Drive on Holidays from Portugal in the rental car segment, which are included here. Fleet management and outsourcing, we also expanded our fleet, capturing the perception of the corporate market, reaching also 112,000 cars. I reinforce that was part of our strategy, and we have mentioned that before, of having a 50/50% in the rental car and GTF segment, increasing company profitability.
Net revenue BRL 1.8 billion, up 79.2% year-on-year, and this business unit had BRL 1.3 billion EBITDA, 85.9% above last year. With the contracts that we have, not counting on extensions, our backlog for future revenues reached BRL 2.6 billion. In the Seminovos segment, we extended volume and prices, selling more than 72,000 cars in the year. We sold the cars with higher prices, changing the profile of used car sales, leading to BRL 5 billion in net revenues in 2022, growth of 93% year-on-year, with an average ticket 19% higher than previous year. The new structure of stores that we opened throughout the year has been efficient in the turnover of cars, even at new price lengths, and we have 11 new facilities this year.
In ESG, we continue with a strong structured agenda for the 4th year in a row. We are part of the ISE B3. We are the only rental car company that is part of this index. We also joined the Carbon Efficient Index of B3, which is ICO2, showing the commitment and transparency of emissions. Our initiatives have been recognized by different agencies and awards in the ESG scale. Among some examples, we have MSCI with double A and S&P at 63. The best ratings amongst the companies in the sector. Now we are going to slide number four, where we are going to show the evolution of our fleet. The key takeaway message here is that we transformed scale. In the end of 2022, we reached 224,000 cars, more than double the size of the fleet since 2019. Most of the growth was after 2020.
In the last year alone, we grew 37,000 cars. It's important to reinforce that we executed our strategy and accomplished a different position in the market. The average age in the rental car segment is the newest, 10 months old, showing the renewal that we had in past quarters. We got to have the fleets in GTF with long-term contracts, which brings more stability to our results. With this accomplishment, we can be selective in buying, focusing on operational efficiency and value creation. I'm going to turn to Moscatelli that will give us more color in this new phase. Once again, welcome Moscatelli, and you have the floor.
Thanks, Renato. Good morning, everyone. It's a huge pleasure to be part of Movida's conference call for the first time. Before starting the presentation, I'd like to thank Renato and the Movida team for the warm welcome.
Thank you. Now I'm going to start on slide number five with our consolidated results. Net revenue in the quarter reached the bracket number of BRL 2.7 billion, growth of 56% compared to the fourth quarter 2021. In the year, we grew 80% in revenue with BRL 9.6 billion due to the growth of our fleet on all of our average tickets by car, as we are going to see further. EBITDA reached BRL 858 million in the quarter, BRL 3.5 billion in 2022, growth of more than 70% year-over-year. I'd like to highlight that the expansion of EBIT in the rental car and GTF alone was 86% in the year. The net revenue grew 68%, showing an important gain of more than six percentage points in our margin.
EBIT in the quarter was BRL 477 million, down 21% compared to the same quarter 2021, mostly impacted by the increased depreciation due to the cycle of our fleet and the normalization of the used car market. I'm going to give you more color on that in next slide. We grew 45% in EBIT compared to 2021, reaching BRL 2.4 billion. Net income was BRL 18 million in the first quarter and BRL 550 million in the year 2022. In addition to higher interest rates that affect this line, we also had the increase of depreciation rates in the fourth quarter, as we mentioned before. I'm going to go to slide number six, where you see more granularity in the fleet profile depending on time of purchase.
As you can see, the company today has 50-50% for the GTF segment and for the rental car segment. In GTF, we have 112,000 cars. We worked very hard to renegotiate contracts with the main customers that had a low profitability. We are very successful in most negotiations. With that, we have a contract portfolio with average time of 29 months and average yield of 2.8 per month, which is very good profitability for the segment. The other half is in the rent-a-car with 111,632 cars. Here you see the time of purchase and average ticket. We have two takeaway messages here. First, the purchases of the last two quarters, the third and fourth quarter 2022, already have a suitable average ticket for the segment.
The cars that are in our fleet but in the second quarter of 2022, as you can see in orange, are 54,000 cars, only 24% of the total fleet of the company. The fleet we are going to expand the useful life without obviously losing quality for our customers and therefore minimize the depreciation of these cars. As you can see, we are going to start having a much more detailed management to improve assertiveness in decision-making and therefore improving value generation for our shareholders. On slide five, we bring the evolution of purchase and sales prices. As you can see, we are in a time of transition, especially in the rental car segment. In the first chart, you see purchase volumes that are below sales volumes, which improve our cash flow and also brings a new cycle of profitability with the right fleet mix.
This quarter, the sale price went up the purchase price by more than 6,000 cars. In GTF, that takes a little longer to show because you have a longer cycle for the assets. We are still going to have more cars to be sold before the appreciation that we had in the industry in recent months. I'm going to slide number eight, where we show the evolution of depreciation rates with a breakdown between rent-a-car and GTF. We closed the year with a depreciation rate of 10.3% in the rent-a-car segment and 4.8% in GTF. The increase, especially in the rental car, is because of the transition cycle and the fleet mix, and also the normalization of the market of used car sales.
As I mentioned before, it's important to show that depreciation rents for the rent car part can benefit from the extension of use life of our fleet and better commercial terms for the last purchases that we had in 2022. I'm going to give you more color by business segment. I'm going to start with rental car on slide 10 and the main operational results. We grew our fleet by more than 20%, closing 2022 with 111,000 cars, 23% above 2021. We increased capillarity with 34 new stores in 2022, closing the year with 241 stores throughout Brazil. We had an important evolution in daily ticket, close to the fourth quarter with BRL 144, and in the year with an average BRL 134, 41% above that of 2021.
On slide 11, we have the financial highlights for the rental car segment. Net revenue was BRL 788 million in the quarter, growth of 41% compared to 4Q 2021. In the year 2022, we had an increase of 61% with BRL 2.8 billion because of a higher average ticket and more daily rentals in the period. We had consecutive records of revenue per car in the year of 2022, growth of 29% compared to 2021. EBITDA in the fourth quarter was BRL 417 million, up 25% year-on-year. In 2022, the expansion was 86%, exceeding the BRL 1.6 billion mark. EBITDA by car grew by 50% on 2022 vis-a-vis 2021.
In the fourth quarter, we had a reduction of 3% because of the precision of excess credit in PIS/Cofins and also the retirement of more expensive cars for used car sales. On slide 13, I'm going to talk about fleet management and outsourcing. We closed the year with 112,000 cars, up 16% vis-a-vis 2021, with a daily volume of 32,000 plus 40% or 50% over 2022, and with a backlog that is 44% higher than 2021, showing the profitability and scale of the segment in the company. On slide 14, the financial results for GTF. As I mentioned, we reached a new level of revenue, BRL 518 million in the quarter, BRL 1.8 billion in the year, growth of 79% over 2021.
In addition to the increase in volume that we talked about, we had a significant increase of revenue per car of 21% year-on-year, 16.8% quarter-on-quarter, reaching 2,000 cars per car on average. We have extensive work of renegotiating contracts recently at readjusting yields to be compatible to the macroeconomic scenario and bringing the portfolio to a new level of profitability. EBITDA in the quarter was BRL 336 million, up 28% compared to 4Q2021, and in the year BRL 1.3 billion, growth of 86% compared to 2021. We are going to go to slide 16 with the main used car sales indicators. An important increase in the number of used cars, reaching 72,000 cars in the year, 62% up 2021, 18.6 thousand in the fourth quarter.
That improved the efficiency in our infrastructure that is prepared for the new cycle of assets for 2023. In the bottom left corner, we had a reduction of expenses in 4Q and 2022 with 11 new points of sale that are prepared to sell our cars. On slide 17, I'm going to talk about some financial indicators for this line. It's clear to see the new level of scale of the company. We close with BRL 5 billion with a growth of 92% in the sale of cars. In the fourth quarter, 1,400 cars sold. We are in a transition for our fleet, as you can see in the EBITDA for the quarter. This effect comes from the rental car segment. We are changing our fleet for an average sale ticket.
With that, we had an average ticket of more than BRL 75,000 in the quarter. We expect this line to go back to normal, as we can see in the last chart of the slide. Going to slide 19, I'm going to talk about our capital structure. We closed the year with BRL 10.8 billion in net debt, down 6.4% to the third quarter 2022. That's mainly due for the true sale of our receivables portfolio in the GTF in the amount of BRL 800 million in the fourth quarter. With that, our leverage went from 3.81 x to 2.8 x. On slide 20, we have our cash and debt amortization schedule. We have a very strong cash position, BRL 6.8 billion in December 2022, enough to cover our debt until 2025.
In my view, we have a cost debt that is above our credit risk. We are going to use our cash to manage our liabilities from close in the quarter. We already repurchased. Slide 22. We summarize the main takeaway messages that we want to have for you to have. 2022, we closed a cycle of growth with gains of profitability in the rental car and GTF. We are starting a new phase for fleet efficiency, optimizing our site and creating value. The scale that we achieved, 224,000 cars with the newest fleet in the rental car market, enables us the optionality to choose when to buy and when to grow, favoring the dynamics of our cash flow. An important point, our market continues to be healthy with heated demand and very strong foundations.
The under-penetration and creation of new products is a scenario for high potential for the rental business. In the used car market, we have the structure ready for the volume we have to sell, ready to respond to optimization of our assets. The transition of our fleet to a lower price mix benefits the depreciation dynamics and cash flow, leaving us in a more comfortable position than previous year or than other players that will have to renew their fleet in a tighter credit market. We are strategically positioning GTF to meet different demands in this vast market, and that will bring further stability to our consolidated results. Finally, our size, balance sheet, and liquidity gives us the comfort to execute with discipline our capital allocation structure in cars and in management of liabilities to create the most value to our shareholders.
Once again, thank you, Moscatelli, for accepting the challenge and joining Movida in this promising phase that is yet to come. I also thank Edmar that built all of this with us and is now taking on new challenges in Simpar Group. thanks our creditors, employees, investors, suppliers, and other stakeholders to be with us and supporting us. We are very proud of what we have done so far, but even more encouraged for the future to come with unique positioning and execution of a strategy so far that put us in this space to capture the benefits of scale and our commitment with value creation. Thank you very much. now we are going to open for your questions.
Ladies and gentlemen, we'll now start the Q&A session. To ask a question, please press star one. To withdraw your question from the list, press star two. Our first question comes from Pedro Bruno from XP Investimentos.
Good morning, everyone. Thanks for taking my question. I would like to know about your receivables. Moscatelli did mention during the presentation, and I have just to confirm my understanding. This, we had also this operation in another of the group's company, Vamos, where Moscatelli comes from. I would like to know if it's any different from the structure that we already know in Vamos or if it's exactly the same structure. It is an off-balance receivable that impacts the reported leverage, as you mentioned, and obviously helps when you think of governance and other things. It is an off-balance debt. I would like to know if that is the correct understanding of the true sale. Do you have room for more of such operations?
That's my second question. Third and last, cost. What is the ballpark of costs when we compare to the operation that we know in Vamos? It's probably a lower term, so I would like to know what it means in terms of costs, average costs, I don't know. Thank you very much. That's it.
Hi, Pedro. This is Moscatelli speaking. Thanks for your question. The operation in Movida was very similar to that of Vamos. I think that one thing that was positive is that we operated with a different financial institution, and it was also a bilateral operation, which shows opportunities for other financial players. It shows that we have the means of doing more and perhaps in better terms. Almost BRL 780 million at present value. This is not an off-balance operation.
It is in the company liability. You have the full disclosure of the operation, but it does not go into leverage indicators as it did not in Vamos, as you mentioned. The cost was CDI plus 2.30, a little better than Vamos. That was CDI plus 2.5, but it was also a prefixed operation to protect from now on the profitability of GTF contracts. All receivables were in GTF contracts. We already have BRL 780 million prefixed in the GTF structure. I think these were your questions. If not, please let me know.
No, thanks for the correction. Yes, I was thinking of offset and not off-balance. I understand. These were the points. Thank you very much, Moscatelli. Oh, I'm sorry. If I can, a very quick follow-up. The prefix rate, does it imply any change in your policy? We understand that Movida's policy in hedging prefix rates, you did not do that because of costs, probably in the past. Is it an alternative for you to have some kind of hedge? I would just like to understand Movida's position with regards to the hedge policy.
Pedro, we still do not have a defined policy on that, but this is going to be a point for discussion in the next board meeting. The idea is to have some kind of policy to protect GTF contracts similar to what you saw in Vamos in recent years. We have the idea to have that, but it hasn't been approved by the board of directors, so this is going to be our agenda for the next meeting.
Thank you very much. These were my questions. And again, thanks for taking my questions. Thank you.
Our next question comes from Lucas Marquiori from BTG Pactual.
Hello, everyone. Good morning, Renato, Moscatelli. Good luck on your new position. Two questions. First, the planning for your rental car fleet. When you show the difference between 21, 22 and just to expand the life cycle of your cars, I would like to know if you're still going up the mountain to just fix depreciation. You showed 10% depreciation on gross assets. If you expand the cycle, will you have to further adjust depreciation for the coming quarters? Just for me to understand the depreciation heard for the beginning of the year and if there are adjustments to make. Second question, you mentioned that you already started reviewing some GTF contracts pricing.
I'd like to know what % of the portfolio you have adjusted, if there's still too many contracts to be adjusted. The final balance of the adjustment, do you have, you know, the level of returns for older contracts similar to what you have in new contracts? Basically, these are the two points I have. Thank you very much.
Hi, Lucas. I will start with the fleet. We said that our strategy for the fleet of 54,700 cars is to expand the cycle because we believe this is going to be a benefit for depreciation rates. The depreciation rate that we have for this fleet specifically is higher than what we expect prices to go down in the next 18 months. That will benefit the depreciation rates that you saw in the fourth quarter.
That's the reason, again, for us to keep the level of service of our clients, but adjust that. We have almost 33,000 cars already bought at the right ticket and with depreciation below 10%, which is our view for this market. Closer to 8%, between 6% and 8%. In GTF, we had a huge effort in the last quarter and beginning of this year. The average yield of the contract in-house was about 2.3%. We increased this to 2.8%, which already delivers a tier between 18% and 19%. It is, in my view, very suitable profitability. What we have to negotiate from now on is more marginal, we have to really manage the new contract to have the right yield from start. What I see that the correction that we had in previous contracts has already happened, from now on, you're going to see contracts with the right yield.
Thank you very much, Moscatelli. Have a good day.
Thank you, Lucas.
Our next question comes from Victor Mizusaki from Bradesco BBI.
Good morning. I have two questions. The first, if you may, talk a bit about margins in the rent a car and GTF segments. We saw a bit of pressure, if we make the comparison to previous periods. The drop of margin, is it related to more funding because of a faster pace in the purchase of cars? Also thinking of Movida's structure, Gustavo, you talked about pricing. Internally, have you changed positions in purchase of cars?
Hi, Victor. Thanks for your question. First, I'm going to talk about the rent a car and GTF business. If you take a look at the operating margin in our business today, margin is still evolving. We have demand and operating efficiency, so margins are still very positive. The result you see in the fourth quarter is impacted by the provision that we made because the excess credit of PIS and COFINS taxes that reverted approximately BRL 60 million, which impacts the margin. We see the operation growing, gaining scale, and we have much to capture. A little impact that we had is because we advanced some purchases.
Because of the opportunity of buying good mix at good prices, you see that the operational efficiency is a bit impacted because we have a higher non-operating fleet. We are going to work to improve this number and improve return and reducing financial expenses and depreciation that impact the business. As for price, Moscatelli's arrival is just a landmark of this new phase. We have governance and a stronger role for the financial department and Moscatelli in pricing for us to establish minimum returns per line of business and per asset that is rented.
Victor, just adding to what Renato said, just to give you a bit more color on the reversion of tax credit. That was mostly for the rent a car business. Of the BRL 60 million, BRL 43 million was in rent a car and BRL 17 million in GTF, just for you to understand the breakdown per business in the quarter. As for governance, as Renato mentioned, the idea is indeed to start including more in decision-making, and that will have a difference in the reporting of some areas so that we have a bit higher diligence in capital allocation from now on.
Thank you very much. Just a follow-on. In addition to pricing, Is this also true for the purchase of cars and assets?
Yes. Yeah. When we talk about car purchases, we are not talking about negotiation with OEMs. We are talking about having additional intelligence in choosing cars, so that indeed at the time of purchase, we know where the car is going to, what region, what is the right model that we need given the fleet's diversification and also the return on invested capital per purchased car. This is what we call purchase intelligence, which is disciplined under the financial department. Yes, more than changing reporting, it's changing governance. Governance is going to be more robust with this intelligence that Moscatelli mentioned. We created an area for asset allocation that sees return per business, per asset that will influence the purchase decision. This is obviously a financial analysis that is going to give its input. Let's buy this or that. We are creating a more robust governance, rather than just changing report lines.
Yes, I understood. Very clear. Thank you very much.
Our next question comes from Daniel Gasparete from Itaú BBA. Daniel Gasparete , you may go on.
Can you hear me? Okay, good. I have two questions on my side. A follow-up of the first question in terms of volumes. I don't think Moscatelli mentioned that. If not, I missed it. Moscatelli, what do you think you could have volumes in the portfolio that you have, and at what recurrence rate for you to have this type of operation? Second question is the competition and daily rates. Just for me to know how you're positioned in the market and how easily are you increasing prices?
Hello, Gasparete . Good morning. This is Moscatelli speaking. Thanks for your questions. I'm going to start with the portfolio, and then I will turn to Renato. With the portfolio that we have in December, we would have a potential of another BRL 800 million-900 million. Remember, we generate new contracts every month in GTF, so the BRL 800 million-900 million tend to expand since we did not do anything in January, February, or March. This portfolio, in my view, will get to the end of the year between BRL 1.7 billion-1.9 billion potential.
As for your second question about competition, Gasparete , we always report that the foundations of the market continue solid. We see strong demand, people wanting to rent cars for the first time inclusively. Movida is gaining market share, but that's not our main strategy to grow. We grow in digital to bring new customers.
The market is greater than excess. As prices go up, they dictate the speed of growth. When the price goes up faster, growth is a little lower. If we hold price increases and capture operational efficiency and return margins based on other levers, we attract more customers. Competition is in the same scenario since we saw in the beginning of Movida. Clients for all players with a positive scenario for the industry as a whole when we think of operation, demand, customers, and cash generation. In all businesses, rent a car, corporate fleet, the market is very heated. Subscription cost with lots of demand and room to grow. We control growth and also public corporate fleets.
Thank you very much, gentlemen. Have a good day.
Have a good day.
Our next question comes from Guilherme Mendes from JP Morgan.
Hello, good morning, Renato, Moscatelli. Moscatelli, welcome. Good luck in your new challenge. Two questions. First, a follow-up about the automotive market. You talked about the purchase of cars. Can you give us a bit more color, what are OEMs like compared to the pandemic period and the cycle we had in 2022? Also, as for growth that Renato mentioned in the last question and competition, how do you see the breakdown between growth and leverage? What are your main market metrics in the management of liabilities that can enable you to have more accelerated growth?
Okay, Guilherme, I'm going to start with the market, the industry. The fourth quarter brought more opportunities, and we are increasing discounts. Not as much as pre-pandemic times, but better than 2022.
Some purchases very close to pre-pandemic times in terms of discount and volumes, which did not happen in the second half of 2022. In 2023, discounts and prices are still lower than the pre-pandemic. Better than 2021 and 2022, but not yet at pre-pandemic times. We are close to that, but not yet. We believe that this year we are going to have more offer for direct sales. Retail is very much affected by the macroeconomic scenario, which helps us and generates more offers. Our discipline and positioning of having a newer fleet enables us to be selective and wait for opportunities, forcing the industry to get to terms that we want, that are closer to pre-pandemic, but we are not there yet.
Just to add to what Renato mentioned, and also even, that's having a different view on what he said. With the level of discounts that we have today and with what we consider the ideal depreciation rate, the rent a car business is already delivering a return on invested capital between 14 and 20, but that's for the fleets that we bought in third and fourth quarters. We believe we have important improvements to make, especially in the asset turnover. We have a high idle fleet. We are going to work on that, which should further improve the profitability of cars that are in the company. The new cars, as we mentioned, in our view today, already deliver a very appealing return on invested capital. Perhaps not as the full potential, but already appealing.
Secondly, about growth, we do not have a pressure for growth this year. We want value creation. We already have good scale. If we understand that the best for the company is to reduce the bid, we will. We are committed to value creation, operating levers and others to maximize operational efficiency and value creation, and that's what we are going to do. Cash flow is positive, cash generation is positive, we continue with good market foundations. The structure is ready, so there is no pressure to build infrastructure, and now it's just to capture the benefits of the accomplished scale.
Very clear. Thank you very much.
Thank you. Our next question comes from Rogério Araújo from Bank of America.
Hello, good morning, Renato, Moscatelli. Moscatelli, good luck for this new challenge. I have two questions on my side. The first is about the history of purchase and sales in the rent-a-car business. If we compare the average sales price to four, five months, quarters ago, we see a negative number even with the increase in new car prices. My question is, this worse spread, is it because of the purchase of the lower discount that you had then 12, 14 months ago, or is it related to a weaker demand for used cars, or is it both? If you could give it me a bit more color on that, I would appreciate that because I think that, you know, the problem of the first one, you're talking about a different purchase mix.
The second perhaps would be more of a problem in the midterm. That's the first question. I'm going to ask my second one later.
Thanks, Rogério. To answer your question, the spread of purchase and sale, if you look at the rent-a-car, is positive. We have better results, BRL 6,600 per car if you see the price of the car sold and purchased. When you take a look at the margin of used cars, the residual cost, this has been normalizing in line with our strategic plan. Perhaps faster than expected, we knew that prices would normalize. We are performing and we are reducing discount, gaining market share, and performing well with a growth of 90% year-over-year and selling cars that we want to sell. This is part of our strategy.
It is in the result, that's the spread that we have today. I don't know if I answered your question. The spread I mentioned is because I compared the purchase price 12, 14 months ago and the price of sale today. We see Movida close to zero, selling cars at similar prices, now it's down. The price of purchased cars is going up. It should have helped.
From what I understood from your answer, it seems that it's more related to the purchase because you're talking about less discount from the FIPE table. You don't see a problem in demand. Is it right?
Yes. Very true. There are some purchases that we had of more expensive cars. If you see the accrued average, you're going to have a more real result than seeing quarters isolatedly. Remember, for each type of car, we are doing the math to know what cycle will optimize return from that car. I'm not necessarily selling cars that had the same time of purchase. I'm combining spreads because of the different cycles of the different cars bought. Of course, we did buy more expensive cars, and Moscatelli mentioned that in the presentation.
Yes, very clear. My second question about costs. First, PIS/Cofins credits. You had this reversal of BRL 60 million, 4% of the rental revenue. From what we see in the breakdown of EBITDA, we see a net of 9%. Can we say that the recurring PIS/Cofins credit is 3% of the gross rent-a-car revenue? Is that what we should continue to see further on, or is it closer to net, which is 9%? Still in costs, if I may, we did see an increase of costs in the sale of wrecked cars and also provision for bad debt. Could you talk a bit about that? Thank you.
Okay. Second question. PIS and Cofins credit should be in line with the net of the fourth quarter. The other lines of cost, when you take a look at the fourth quarter, provision for bad debt, we had the delay in payment of some customers which generate provision. Some we received in first quarter, recovering a bit, and one or another, not yet, but we're within a very controllable level in provision for bad debt and according to what has been priced and according to plan. That is the most important thing. As for wrecked cars, it increased because the cars have an average ticket. It's not that the loss ratio is going up. It is just that it is proportional to the price of the car.
Okay, I understand. How about the cost of wrecked cars? Almost doubled in your revenue. Is it because the sales mix, or is it something that we should see more recurrently?
No, it is the sale mix of this more expensive cars, and that's why it's higher. When we sell the 24,000 cars Moscatelli mentioned, it's going to be closer to the revenue that we have.
Okay. Very clear. I have just one follow-up in the previous question, just to see if I understood correctly. Moscatelli mentioned an average yield of BRL 2.3-BRL 2.8. That is an increase in daily rates of 22%. Did you negotiate that when, and when is it going to show in your results?
Just for me to calculate, you know, what is to come in the next quarters or if this is best. This has been done since the second quarter of last year. Some have already been captured, and some we are changing for new contract. This is already embedded, but we also have new contracts and renewed contracts. The increase that you see, if you go back two years ago, you have an increase that is higher than this. Part is adjustment of prices and part is new customers adjusted by mix. Remember, you have contracts with lighter vehicles and others with heavier vehicles, which also affects the prices.
Okay. Thank you very much. Yes, most of it is already, yeah, recognized. Yes. Thank you very much.
Thank you very much once again, and have a good day.
Thanks for sharing. Have a good day.
Our next question is on the webcast from Rodrigo Faria from SulAmérica Investimentos.
Good morning, Moscatelli, and congratulations on your new challenge. Could you talk a bit occupancy rates and daily rates for the beginning of the year, particularly in Carnival? What is going to be the behavior of PIS/Cofins credits for 2023? Thank you very much.
Thanks for your question. Okay. Occupancy. One thing that's nice is that January was very strong. January even stronger than December, so reinforcing that the market has a still solid foundation. Because we advanced the purchases of the first quarter 2023 to the fourth quarter, occupancy is ahead. If you think of value of revenue and daily rates, it shows a very strong market. Carnival was very strong, very good. The period between January and Carnival, not as good, as usual. Compared to previous year, even pre-pandemic times and seasonality periods, January was very strong and occupancy rates are going to be a bit penalized because we advanced purchases as you saw in the fourth quarter. Nothing different, business as usual, growing and evolving. As for PIS/Cofins credit, I think we have already answered in the previous question.
Yes, Rodrigo. Just to be very clear, you can think the average of the year as a recurring rate from now on.
Very good. Thank you very much.
Our next question comes from Lucas Esteves from Santander.
Hello, Renato, Moscatelli. Just a quick follow-up. I think that we understand well the purchase of cars and their effects on depreciation. I just would like to understand what metric or what do you expect in the sale of used cars for the future? Just for us to understand the dynamics.
Hi, Lucas. I think this is one of the changes that we are going through. In the past, we were a bit more general with depreciation rates and expectations. Now we are going very granular. We are considering how to better communicate that to you, but with the present granularity, it's hard to give you a number because we have cars that are depreciating at 4, 5, and others at 12. I think that from now on, we are going to improve our communication to be clearer. Most importantly, it is a new look on that, very granular for us not to use an average that applies to all the cars.
Very clear, Moscatelli. Thank you very much.
Thank you.
Ladies and gentlemen, since there are no further questions, we are going to turn the call to the company management for their final considerations. You may go on.
Well, once again, thank you very much. I would like to reinforce the takeaway message. We had a very strong cycle of growth that was part of our strategic plan. If you think of one and a half year ago, two years ago, we built what we wanted. We had the vision of bringing more than 1 million customers year on year for our base. We have the infrastructure. We advanced purchases, but our focus is not one quarter. Thinking of the long term, now we can buy a better mix. We have the infrastructure ready, a strong customer portfolio, a very positive cash flow, and a very strong balance sheet.
We understand that in the mid long term, we are positioned in a very positive, differentiated manner compared to other players. This is a year with a challenging macroeconomic scenario, but we have lots to capture to have Movida as a reference in the market in the midterm. This is our commitment and plan. We are starting a new phase, and you're going to see Movida very different in the future. Thanks for your trust and thanks for joining us. Movida's conference call is now closed. We thank you very much for joining us and wish you a good day.