Magazine Luiza reported a 37% increase in fourth-quarter adjusted net profit, reaching 139.2 million reais. Its core earnings and adjusted EBITDA also showed positive growth, while net revenues increased by 2.3%. The company aims to enhance profitability and focus on artificial intelligence.
Magazine Luiza, a leading retailer in Brazil, reported a noteworthy increase in its fourth-quarter adjusted net profit, reaching 139.2 million reais (approximately $24 million). This figure represents a 37% increase from the previous year and exceeds analysts’ expectations, which were set at 126.9 million reais.
The company’s core earnings, defined as adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), rose by around 12% year-on-year, totaling 846.2 million reais, slightly surpassing the analyst forecast of 845.9 million reais. Furthermore, adjusted EBITDA margins improved by 0.6 percentage points to reach 7.8% for the quarter.
Magazine Luiza achieved net revenues of 10.8 billion reais, reflecting a year-on-year increase of 2.3%. Total sales, which encompass both physical stores and online operations, grew by 2.6%. This performance underscores the company’s resilience and strategic positioning in the retail market.
Vanessa Rossini, the investors relations director, stated, “Our main focus continues to be on expanding our margins,” indicating optimism for further profitability growth into 2025. Additionally, the company announced its strategic cycle, initiated in 2021, will conclude in 2025 as it gears toward a new phase emphasizing artificial intelligence.
In summary, Magazine Luiza has demonstrated significant growth in its fourth-quarter adjusted net profit, outpacing analysts’ predictions. The company also reported increased core earnings and improved EBITDA margins, while net revenues and sales figures indicate stability. As it prepares for a new strategic focus, the retailer remains optimistic about future profitability and innovation through technology.
Original Source: www.tradingview.com
