Magazine Luiza reports a 37% increase in Q4 adjusted profit, totaling 139.2 million reais, exceeding analyst expectations. Core EBITDA rose 12%, with revenue at 10.8 billion reais. The company aims to boost profitability and shift focus towards artificial intelligence from 2025.
Brazilian retailer Magazine Luiza (MGLU3) reported a 37% year-on-year increase in its adjusted net profit for the fourth quarter, totaling 139.2 million reais ($24 million). This performance exceeded analysts’ expectations, which estimated a profit of 126.9 million reais, reflecting the company’s strong market position.
The company’s core earnings, defined as adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), rose by approximately 12% from the previous year, reaching 846.2 million reais. This figure slightly surpassed analyst predictions of 845.9 million reais. Additionally, adjusted EBITDA margins improved by 0.6 percentage points to 7.8% compared to the same quarter in 2023.
Magazine Luiza reported a net revenue of 10.8 billion reais, indicating a 2.3% yearly increase. The total sales growth, which comprises both physical stores and online channels, was recorded at 2.6%. This growth highlights the retailer’s successful adaptation to market changes, both in traditional and digital retail.
Investors relations director Vanessa Rossini emphasized the company’s commitment to profit margin expansion, stating that more opportunities exist for increasing profitability in 2025. The earnings report also outlined that 2025 will mark the conclusion of Magazine Luiza’s strategic cycle initiated in 2021, as the company gears up for a new phase focused on leveraging artificial intelligence.
Magazine Luiza’s impressive 37% profit increase underlines its strong market presence and effective strategies. With rising core earnings and EBITDA margins, the retailer demonstrates financial stability and growth potential. Furthermore, the anticipated shift towards artificial intelligence indicates a proactive approach in adapting to evolving retail dynamics, setting the stage for future expansions.
Original Source: www.tradingview.com
