Retailer claims to have eliminated short-term debt and consolidated the “marketplace”; sales totaled R$15 billion – up 4% compared to the 2nd quarter of 2023
O Magalu presented adjusted net profit of R$37.4 million in the 2nd quarter of 2024. In the same period of 2023, the Brazilian retailer had recorded a loss of R$198.8 million.
The result summarizes a reversal of losses and reinforces the company’s focus on increasing profitability. In the first quarter of this year, the retailer had already recorded a net profit of R$29.8 million.
Adjusted net income refers to the company’s net profit without taking into account profit reserves. Magalu released its financial statement this Thursday (8th August 2024). Here is the full (PDF – 913 kB) of the document.
Already the non-recurring net income was of R$ 23.6 million in the 2nd quarter of 2024. In the same period of 2023, it had a loss of R$ 301.7 million.
O EBITDA (earnings before interest, taxes, depreciation and amortization) adjusted reached R$ 710.7 million in the 2nd quarter of this year. This is equivalent to a margin of 7.9% and an increase of 2.8 percentage points compared to the same quarter of 2023.
In the first half of 2024, adjusted net income was R$67.3 million. In the first 6 months of 2023, Magalu had recorded a loss of R$508.3 million.
Below are 2 graphs that Magalu included in the disclosure statement (PDF – 2 MB) of its balance sheet for the 2nd quarter of 2024, with Ebitda and gross margin:
SALES
To the total sales from Magalu reached R$ 15.385 billion in the 2nd quarter of 2024 – up 4% compared to the same period in 2023.
According to the retailer, sales were divided as follows:
- physical stores – R$4.560 billion (14% increase compared to the 2nd quarter of 2023);
- e-commerce – R$ 10.825 billion (growth of 1%).
Sales of the marketplace –Magalu’s e-commerce platform for third parties – reached R$4 billion. This represents an increase of 4% compared to the 2nd quarter of 2023.
In the statement to the market, Magalu speaks of “resilience” and claims to have cleared short-term debt. He also says that “consolidated its marketplace as a sustainable business with a high level of service, increased its market share in physical stores and, most importantly, became profitable again”.
“Now, what we have ahead of us is a clear runway, which allows us to accelerate with business launches, strategic partnerships – such as signed recently with AliExpress – and explore numerous opportunities across our verticals”the company declared.
Magalu ended the 2nd quarter of 2024 with 1,246 stores. Of these, 1,015 are conventional and 231 are virtual.
Magalu’s operating cash generation in the last 12 months reached R$2.2 billion. It is almost triple that recorded in the 12 months ended in July 2023 (R$829.5 million).
“This evolution is related to the significant improvement in the period’s operational performance and in the evolution of working capital”said the retailer.
HIGHLIGHTS
Read below other highlights from Magalu’s financial statement in the 2nd quarter of 2024 compared to the same period in 2023 (the image is from the company’s statement):
Disclaimer: Magalu’s CEO, Frederico Trajano, is minority shareholder from the digital newspaper Poder360.
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