Magazine Luiza announced a 37% growth in adjusted net profit to 139.2 million reais for the fourth quarter, surpassing analyst expectations. Core earnings rose 12% to 846.2 million reais, with EBITDA margins improving to 7.8%. The company is focusing on profitability expansion and preparing for a shift towards artificial intelligence by 2025.
Magazine Luiza, a prominent Brazilian retailer, reported a notable 37% increase in adjusted net profit for the fourth quarter, totaling 139.2 million reais ($24 million). This figure surpassed the analysts’ expectation of 126.9 million reais, highlighting the company’s robust performance.
In terms of core earnings, the adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reached approximately 846.2 million reais, reflecting a year-on-year growth of 12%. This figure closely aligned with the analyst forecast of 845.9 million reais.
Furthermore, the adjusted EBITDA margins improved by 0.6 percentage points, attaining 7.8% compared to the same quarter in 2023. The net revenue amounted to 10.8 billion reais, indicating a year-on-year increase of 2.3%, propelled by a total sales growth of 2.6% through both physical stores and e-commerce channels.
Vanessa Rossini, the investors relations director, stated, “Our main focus continues to be on expanding our margins,” and expressed optimism regarding future growth in profitability through 2025, following last year’s increase. The report also indicated that 2025 would mark the conclusion of the strategic cycle initiated in 2021, with preparations underway for a new phase centered on artificial intelligence.
In conclusion, Magazine Luiza reported a significant surge in adjusted net profit by 37% in the fourth quarter, exceeding analyst expectations. The steady growth in EBITDA and adjusted EBITDA margins signifies ongoing operational efficiency and profitability. Looking ahead, the company anticipates continued improvement, strategically shifting towards artificial intelligence by 2025, underscoring its commitment to enhancing profitability.
Original Source: www.tradingview.com
