Magazine Luiza reported a 37% increase in fourth-quarter adjusted profit, achieving 139.2 million reais. The company also saw a 12% rise in adjusted EBITDA, reaching 846.2 million reais, with margins improving to 7.8%. Net revenue rose to 10.8 billion reais, reflecting sales growth and strategic focus on profitability and artificial intelligence for future growth.
Magazine Luiza, a prominent Brazilian retailer, announced on Thursday that it achieved an adjusted net profit of 139.2 million reais (approximately $24 million) in the fourth quarter, reflecting a 37% increase from the previous year. This profit exceeded the 126.9 million reais anticipated by analysts surveyed by LSEG.
The retailer reported a 12% year-on-year growth in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), which reached 846.2 million reais, aligning closely with the analyst forecast of 845.9 million reais. Additionally, adjusted EBITDA margins improved by 0.6 percentage points from the same quarter in 2023, now standing at 7.8%.
Magazine Luiza’s net revenue amounted to 10.8 billion reais, marking a 2.3% increase from the previous year. Total sales, encompassing both physical stores and e-commerce, displayed a 2.6% rise, indicating a positive trend in the company’s overall performance.
Business insights provided by Vanessa Rossini, the director of investor relations, emphasized that the company remains focused on enhancing its margins. She noted potential for further profitability improvements in 2025 following last year’s growth. The earnings report highlighted that the years leading up to 2025 will complete the strategic cycle begun in 2021, with plans to pivot towards a new cycle emphasizing artificial intelligence.
In summary, Magazine Luiza reported a significant growth in its fourth-quarter adjusted net profit, exceeding market expectations. The company demonstrated solid performance across various financial metrics, including EBITDA and net revenue, signifying a positive trajectory within the retail sector. The strategic focus on improving margins and transitioning towards artificial intelligence further indicates the company’s commitment to sustaining profitability in the future.
Original Source: www.tradingview.com
