Americanas reported a Q1 net loss of 496 million reais, a stark decline from last year’s profit due, in part, to the Easter holiday falling into the second quarter. Adjusted EBITDA also showed negative results as the retailer strives to recover from a severe accounting scandal and improve its operational performance.
Brazilian retail giant Americanas AMER3 has reported a net loss of 496 million reais, equivalent to approximately $87.98 million, for the first quarter of the year. This marks a stark contrast to a profit of 453 million reais noted during the same period in the previous year. The company highlighted that the timing of Easter, which fell in the second quarter this year, significantly impacted its financial results.
Americanas recorded an adjusted negative EBITDA of 20 million reais, a notable decrease from the positive 243 million reais earned in the first quarter of the previous year. “Easter is almost as important to us as Christmas,” stated Chief Executive Leonardo Coelho in an interview with Reuters, shedding light on the significance of this holiday for the retail chain.
Annual revenue fell by 17.4%, landing at 3.06 billion reais. Despite these struggles, Coelho indicated that if the first four months of 2025 were compared to the same timeframe in 2024, the company would have achieved an estimated revenue growth of around 10%.
Amid ongoing challenges, Americanas remains under bankruptcy protection following a major accounting scandal that uncovered multi-billion dollar fraud perpetrated by former executives. Coelho expressed optimism, noting that the company is gradually improving its financial results each quarter, though he acknowledged that recovery would take time.
In response to its difficult circumstances, Americanas shuttered approximately 80 stores in 2024. Nevertheless, plans are in motion to enhance the performance of the remaining less profitable locations. Additionally, Coelho confirmed intentions to expand by opening new sales points, particularly in the Northeast region, expected in the latter half of the year.
In summary, Americanas faced a significant net loss for Q1 2023, largely attributed to the Easter calendar discrepancies that hindered its expected sales. Despite a troubling financial landscape, including considerable declines in revenue and ongoing bankruptcy protection, the company sees potential for improved results in the future, primarily as it adapts and expands its operations in Brazil.
Original Source: www.tradingview.com
