Saturday , October 23 2021

Luiza magazine has 29% higher earnings in the third quarter with the boost of e-commerce



[ad_1]

Total sales of the company, including physical stores, ecommerce itself and third parties, amounted to Rf 4.6 billion in the period, 33.6% higher than a year

With
Gabriela Mello, Reuters

access_time

5 Nov 2018, 19:54

Sao Paulo – The retailer Luiza Magazine increased by 29.3% profit net since the third quarter compared to the same period last year, with a strong performance in sales, especially in e-commerce, and a reduction in expenses, according to the balance sheet published Monday night.

Luiza's quarterly net revenue rose 28.5% from the previous year to 3.67 billion euros, increasing cumulative revenue from January to September to Euro 10.98 billion. Operating expenses rose 25.7% from the third quarter last year to 821.1 million Re, while adjusted net finance costs shrunk by 16.7% to 69.9 million Reis than interest rates.

The company's operating earnings, which are based on earnings before taxes, finance, investment and depreciation (Ebitda), increased by 11.4% on the same basis to Reis 278.9 million, with the reduction in financial expenses and increase sales. However, the EBITDA margin decreased by 1.2 percentage points in the third quarter of 2017 to 7.6%, influenced by additional investment in service improvement and acquisition of new customers.

Total sales of Magiza Luiza, including physical stores, e-commerce itself and third parties (market) amounted to 4.6 billion euros between July and September, marking an annual increase of 33.6%. Growth came from e-commerce, whose sales rose 54.6% from the third quarter of 2017 to 1.7 billion euros, or 36.2% of the total volume sold by Luiza magazine in the period.

On the physical level, meanwhile, the retailer sold 24% more and, in the same shop idea, the high was 16.3%. "We also highlight the excellent performance of new stores that, with higher than expected results, contributed 8 percentage points to sales growth," the company said in the balance sheet.

Opponent Via Varejo, the owner of the Casas Bahia and Pontofrio brands, released its own store sales by 4.2% at the end of October.

In the four months ending in September, Luiza magazine opened 29 stores, entering new areas, adding 87 launches in the last 12 months. The network had a total of 913 physical stores, of which 22% were mature.

At the end of September, the Luiza magazine had a total liquidity of $ 1.9 billion, including cash investments of R $ 700 million and $ 1.2 billion for credit card claims. Investments totaled 112.8 million euros from July to September, more than doubled to $ 47.6 million in the third quarter of 2017, with funds for opening shops, renovation, technology and logistics.

In 2018, Magazine Luiza shares rose more than 116%, surpassing their rivals like B2W, which grew by 60%, and Via Varejo, which lost more than 31% since the beginning of the year.

[ad_2]
Source link