Magazine Luiza reported a 37% increase in fourth-quarter adjusted profit, reaching 139.2 million reais, exceeding analysts’ expectations. Core earnings (EBITDA) rose 12% to 846.2 million reais and the company’s net revenue was 10.8 billion reais, up 2.3%. The firm aims for further profitability growth as it shifts focus towards artificial intelligence.
On Thursday, Brazilian retailer Magazine Luiza (ticker: MGLU3) reported an adjusted net profit of 139.2 million reais ($24 million) for the fourth quarter, marking a 37% increase compared to the same period last year. This figure surpassed analysts’ expectations of 126.9 million reais.
Magazine Luiza, a major player in Brazil’s retail sector, also reported that adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose approximately 12% year-on-year to 846.2 million reais, in line with analysts’ estimates of 845.9 million reais. The EBITDA margin improved by 0.6 percentage points to 7.8%.
The company’s net revenue reached 10.8 billion reais, reflecting a year-on-year growth of 2.3%. Total sales, encompassing both physical stores and e-commerce channels, increased by 2.6% during the same period.
In summary, Magazine Luiza has demonstrated impressive financial growth, with a significant increase in net profit and EBITDA margins, indicating effective operational strategies. The retailer’s focus on profitability enhancement and future technological integration suggests a strong outlook ahead, particularly with their plans to embrace artificial intelligence in their operations.
Original Source: www.tradingview.com
