Industry Analysis
Advertising Agencies

Margins Analysis

The sector shows consistently high gross margins, growing from 44.47% in 2020 to 71.42% in 2024. This evolution reflects the agencies' ability to optimize direct costs and add more value to the services provided.

The EBITDA margin, although it fluctuated between 15-25% during the period, remains at a healthy level of 17.56%. Direct costs represent about 49% of revenue, showing an efficient operational structure for service companies.

Profitability Analysis

The sector presents excellent profitability with an ROE of 36.84%, demonstrating a strong capacity to generate returns for shareholders. This level is significantly above the Brazilian market median.

The ROA of 10.97% indicates good efficiency in utilizing total assets for profit generation. The ROIC of 42.83%, although it receded compared to 2023, remains at a high level, signaling that the sector achieves robust returns on capital employed in the business.

Growth Analysis

After the strong impact of the pandemic in 2020 (-11.63%), the sector had an exceptional recovery in 2021 (+45.02%). Growth normalized in 2022 (17.26%), had a contraction in 2023 (-4.51%), and returned to grow 11.34% in 2024, signaling a consistent recovery.

The growth pattern demonstrates the cyclical nature of the advertising sector, which is highly sensitive to the macroeconomic environment and companies' marketing investments. The recovery in 2024 indicates positive prospects for the sector.

Liquidity Analysis

The sector shows good capacity for short-term payments, with current liquidity of 1.36x in 2024, which means that for every R$ 1.00 of short-term debt, companies have R$ 1.36 in current assets.

The immediate liquidity of 0.25x indicates that 25% of current liabilities can be covered with cash alone, an adequate level for the services sector. The general liquidity of 1.02x demonstrates balance between total assets and liabilities, indicating a solid financial structure.

Operating Cycle Analysis

The median collection period of 239 days (~8 months) is characteristic of the advertising agency sector, which works predominantly with large corporate clients and long-term contracts.

The reduction from 256.93 days in 2023 to 239.17 days in 2024 indicates an improvement in receivables management. The sector does not show relevant stocking because it involves service provision, with direct costs mainly related to labor and media placement.

Debt Analysis

The sector shows moderate indebtedness of 70.21%, with an improvement compared to 2023 (74.90%). The net debt practically zero (-0.03x EBITDA) indicates that companies in the sector have sufficient cash to cover their financial debts.

The interest coverage ratio of 2.86x demonstrates a good capacity to pay financial expenses with operational cash generation. Financial leverage of 0.92x is at controlled levels, indicating a balanced capital structure.

The cost of net debt of 32.67% in 2024 showed a significant reduction compared to 2023 (52.84%), signaling better credit conditions. The low immobilization of equity (0.35x) reflects the nature of the service business, with less need for fixed assets.

Analysis of the Decade

2015-2019 (Recovery): Post-economic crisis recovery period, with gradual growth in margins. Gross margin grew from 28% to 45%, and the sector returned to consistent positive profitability.

2020 (Pandemic): Initial impact with an 11.63% drop in revenue, but margins remained relatively stable, demonstrating industry resilience.

2021 (Boom): Strong recovery with explosive 45% growth and record margins. ROE reached 50.70%, reflecting an exceptional moment for the advertising market.

2022-2024 (Normalization): More moderate growth with consolidation of margins at high levels. In 2024, the sector returns to grow 11.34% with a robust ROE of 36.84%, indicating maturity and solidity.