Luiza magazine recorded a net loss of R $ 24.4 million in the second quarter, reversing a profit of $ 23.6 million observed in the same period last year, with an impact of non -recurring expenses and a provision made after fundraising with IFC and IDB Invest.
In rectified data, the company has obtained a net income of 1.8 million dollars, sinking 95.3% compared to the second quarter of 2024, according to the financial balance issued on Thursday, following this case mainly affected by the increase in the CDI.
For Reuters, the financial director of the magazine Luiza, Roberto Bellissimo Rodrigues, said that financing with the International Finance Corporation (IFC) and the multilateral investment investment bank in the period, for a total of $ 180 million, have requested a provision of $ 26.5 million who influenced the final balance line and other non -reservations.
In the rectified result, explained the executive, the effect was pressed mainly by the rectified financial costs, which increased by 23.6% in the annual comparison, to R $ 495.6 million.
“At financial expenses we cannot completely isolate the effect of the CDI … and the CDI went from 10.5% to 15%. So we mitigated this effect a lot, but it is almost impossible to be totally isolated.”
In this scenario, Rodrigues said, the company is still focused on the increase in margins and the transmission of “what we can transmit”.
Despite the accounting damage, the company has presented operational evolution in the quarter, with profits before interest, taxes, demort and reversing (Ebitda) growing 4.9% of year, at $ 687.1 million, equal to 2.3% on the corrected base, at $ 726.7 million.
The company has attributed operational services during the period to the growth of physical stores, also citing strong control over the expenses and positive services of the financial Luizacred, a partnership between Unibanco Itaú and the Journal of Luiza.
Sales in the retailer’s physical stores remained for 4.7 billion dollars in the quarter, with a 3% increase in comparison year after year.
But total sales, which also include sales in electronic commerce with their shares and market, have had a negative variation of 0.6% in the period, to $ 15.3 billion, mainly taken from a drop of 6.4% in the market, where competition in low -ticket products is ferocious.
“We have sold less at low level of high levels of average tickets very low, which are categories that have a margin of negative unitary contribution,” said the CFO.
“We didn’t want to participate in this price war that some markets are making to subsidize and take these very low average ticket products … it is a very circumstantial problem, given our attention to the increase in the margin, to focus on profitability, to focus on quality products, products for high tickets.”
In the budget, the company also attracted attention to the profit of $ 101.8 million from financial Luizacred in the second quarter, a growth of 43.7% compared to the same stage of 2024, as well as a reduction in default of the last crops.
Source: Terra
Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.
