Total product sales amount to R$14.8 billion in the period; adjusted Ebitda (earnings before interest) was R$487.5 million
O Magalu recorded a net profit of R$331.2 million in the 3rd quarter of 2023. The value represents a reversal of the loss of R$190.9 million achieved in the same period of the previous year. The numbers were released on Monday night (13.Nov.2023). Here’s the complete of release of financial results (PDF – 1 MB).
The retailer stated that part of the results are explained by tax credits relating to PIS/Cofins bonuses received by suppliers, which came from an understanding of the STJ (Superior Court of Justice) on the collection of tax.
“Based on judicial precedents and the opinion of our legal advisors, Magalu recognized tax credits this quarter”says the earnings release.
The value of the credit refers to periods prior to 2022 and amounts to R$688.7 million (R$533.1 million in principal and R$155.6 million in monetary restatement).
“In the adjusted view, that is, disregarding non-recurring effects, the adjusted net result was negative by R$ 143.4 million”, writes the company.
Total sales of own products totaled R$14.8 billion from July to September – an increase of 4.8% compared to the same period in 2022. The average annual growth in 4 years was 21.5%. Here is the breakdown by area:
- e-commerce – reached R$10.9 billion in sales, an increase of 6% in 1 year;
- marketplace – sales totaled R$4.4 billion, growth of 25%.
Adjusted Ebitda (earnings before interest, taxes, depreciation and amortization) closed the period at R$487.5 million – an annual increase of 0.1 percentage point in the margin.
HIGHLIGHTS
Read below other highlights of Magalu’s financial statement in the 3rd quarter and the annual comparison:
- Net Revenue – R$8.6 billion, down 2.6%;
- gross income – closed at R$10.6 billion, down 1.5%;
- Ebitda – R$ 970.9 million, increase of 6.1 pp in margin;
- gross profit – grew 7.9% and closed at R$2.6 billion;
- financial expenses – were R$569.1 million, a decrease of 6.6%;
- gross margin – was 30.4%, an increase of 2.9 pp and the highest in 6 years;
- physical stores – 1,303 in 20 Brazilian states. Closed 127 stores since the 3rd quarter of 2022;
- sales in physical stores – had a growth of 2.3%, an increase of 0.9 pp
Here is data about customers and audience:
- active users on the app – 48 million monthly;
- active clients – 36 million;
- online audience – 430 million hits on the website and app.
Disclaimer: Magalu’s CEO, Frederico Trajano, is a minority shareholder in the digital newspaper Power360.
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