UPDATE 1-Brazil's Magazine Luiza swings to profit, hits highest margin in four years
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 09 2024
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Source: Yahoo Finance
- Magazine Luiza Financial Performance: Magazine Luiza, a Brazilian retailer, reported a net profit in the first quarter, reversing a year-ago loss due to reduced financial expenses and increased core margins.
- Revenue and Sales: The company's net revenues increased by 1.9% year-on-year to 9.24 billion reais, with sales rising in brick-and-mortar stores and on its marketplace platform.
- Online Sales: While online sales from its own stock declined for the third consecutive quarter, the segment returned to growth in April, with overall sales rising by a "high-single digit."
- Adjusted EBITDA and Margins: Magazine Luiza's adjusted EBITDA rose by 53.5% to 687.8 million reais, with adjusted EBITDA margins reaching 7.4%, the highest in four years.
- Future Outlook: With interest rates decreasing in Brazil, the company aims to boost sales through investments in customer experience and sees an opportunity for more profitable results.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
