Americanas reported a net loss of 496 million reais in Q1, down from a profit last year, citing Easter’s influence as a key factor. Adjusted EBITDA also fell significantly, while net revenue declined 17.4%. The company, still navigating bankruptcy, is working to stabilize its operations and plans to open new stores later this year.
Brazil’s Americanas, the retail giant, has reported a major operating loss for the first quarter of this year, revealing a staggering net loss of 496 million reais, roughly $88 million. This downturn starkly contrasts with a profit of 453 million reais recorded in the same period last year. The company attributed this significant loss to the Easter holiday, which fell in the second quarter this year rather than the first, leading to what they call an unfavorable timing mismatch.
In the financial report, Americanas noted an adjusted negative EBITDA (earnings before interest, taxes, depreciation, and amortization) of 20 million reais, a steep decline from a positive 243 million reais year-on-year. The Chief Executive, Leonardo Coelho, elaborated on the situation, highlighting how crucial the Easter period is for sales, likening its importance to that of the Christmas season. “Easter is almost as important to us as Christmas,” Coelho explained during an interview.
Despite the current setbacks, Coelho remains optimistic about future growth. He mentioned that had one compared the first four months of 2025 with the corresponding span last year, revenue would have seen a rise of approximately 10%. However, that optimism is tempered by the stark reality of this quarter’s net revenue, which plunged by 17.4%, landing at 3.06 billion reais.
Americanas is still grappling with the aftershocks of a major financial crisis triggered by the exposure of a multi-billion dollar accounting fraud by the company’s prior executives. The impact of this scandal has lingered, and as it stands, the retailer is under bankruptcy protection, a legal move to reorganize its debts and keep the business running. Coelho asserted that they’ve been making strides in improving quarterly results, although he acknowledged that full recovery would take time.
The company is actively working to enhance the profitability of its underperforming stores and has closed around 80 retail locations in 2024. For the latter half of this year, Americanas has plans to broaden its footprint by opening new locations, particularly targeting the northeastern region of Brazil. This expansion effort is part of an overall strategy to regain financial stability and boost market presence.
In summary, Americanas has faced a significant challenge in the first quarter, with a net loss attributed to the Easter holiday’s timing. The company’s current issues are compounded by a past accounting scandal, but there are ongoing efforts to recover, including store revitalization and new openings planned for the second half of the year. It’s a tough road ahead, but the leadership remains cautiously optimistic about future revenue growth.
Original Source: www.tradingview.com
