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Omni restructures, expects to return to profit in 2024

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Vincent

Almost nine months after taking command of the Omni group — broadly known for its finance company, operating with used vehicles for sale — Heverton Peixoto promoted an in-depth restructuring of the firm. He has closed several business units, including credit card, and increased focus on profitability aiming to bring the group back to the black in 2024, after two years of losses. The plan is to get the house in order and find a strategic partner.Following the expansion in the scope of operations in recent years, the group's finance company posted R$64.960 million in losses in 2022 and R$107.493 million in the first half of 2023. "We clearly lost money when we moved away from our core business, which are Brazilian small entrepreneurs from classes C, D, and E," the CEO says, in reference to Brazilian middle, lower-middle, and lower classes. "The year 2023 was one of restructuring, so that we can go back to growth next year," he adds.Omni either divested from or closed five business units, in addition to reducing its headcount by 20%. The co-branded card operation was sold to DM Card; the freight payments unit merged with TicketLog; the area of loan for medium-sized companies closed; and its own-brand credit card was also shutdown. The digital banking operation has significantly shrunk, sticking only to those customers with other credit operations in the group. Trigg, a previously independent subsidiary, has been downsized to one third of the size it had earlier this year and has been incorporated into the group. "We once had 1.5 million credit cards, considering Omni and Trigg, and now we have reduced the number to 200,000. As a consequence, Trigg is now a profitable company", the executive says.Mr. Peixoto says the cost of carry of the credit card portfolio is expected to maintain its negative impact in the first half of next year, but the overall situation should improve significantly over the second half of...

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