Magazine Luiza reported a 37% increase in fourth-quarter adjusted net profit of 139.2 million reais, exceeding analyst expectations. Core earnings rose by 12% year-on-year, totaling 846.2 million reais. Net revenue also increased 2.3% year-on-year, reaching 10.8 billion reais, while adjusted EBITDA margins improved to 7.8%. The company plans to focus on artificial intelligence in its next strategic cycle, set for completion in 2025.
On Thursday, Magazine Luiza MGLU3, a prominent Brazilian retailer, announced a significant 37% year-on-year increase in its adjusted net profit, reaching 139.2 million reais (approximately $24 million) for the fourth quarter. This performance surpassed analysts’ expectations, which had projected a profit of 126.9 million reais.
The retailer’s core earnings, specifically the adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), grew by roughly 12% from the previous year, amounting to 846.2 million reais. Analysts had forecasted an adjusted EBITDA of 845.9 million reais, indicating the company’s stronger-than-anticipated financial performance.
Magazine Luiza also reported a 2.3% increase in net revenue, totaling 10.8 billion reais thanks to a 2.6% rise in total sales across its physical stores and e-commerce platforms. Additionally, the adjusted EBITDA margin experienced a growth of 0.6 percentage points, reaching 7.8% compared to the same quarter last year.
Vanessa Rossini, the Director of Investor Relations, emphasized the company’s commitment to enhancing profitability, stating, “Our main focus continues to be on expanding our margins.” Rossini anticipates further opportunities for profit growth in 2025 as the company transitions into a new strategic cycle.
In its earnings report, Magazine Luiza outlined plans to conclude the existing strategic cycle initiated in 2021 and prepare for a new phase that places a greater emphasis on artificial intelligence.
Magazine Luiza’s fourth-quarter results highlight a robust growth trajectory, with a 37% increase in adjusted net profit and solid performance in core earnings. The company’s strategic focus on expanding margins and enhancing profitability illustrates its commitment to future growth, particularly in the context of integrating artificial intelligence into its operations. As it transitions to a new strategic phase in 2025, Magazine Luiza remains well-positioned within Brazil’s competitive retail market.
Original Source: www.tradingview.com
