Release Date: August 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Americanas SA (BSP:AMER3, Financial) successfully completed its judicial recovery plan, significantly reducing its debt from BRL42.3 billion to an estimated BRL2.2 billion.
- The company reported a strong improvement in profitability, with a gross margin increase to 34.5% in the first six months of 2024.
- Physical retail showed resilience, with a 15.9% increase in sales compared to the same period in 2023, despite a challenging market environment.
- Americanas SA (BSP:AMER3) has implemented strategic initiatives to optimize its store operations, including remodeling and adjusting product assortments to better meet customer demands.
- The company has strengthened relationships with suppliers, which has positively impacted its working capital and operational efficiency.
Negative Points
- Americanas SA (BSP:AMER3) experienced a significant decline in digital sales, with a 75% drop in 2023 due to a crisis in credibility.
- The company had to close 125 stores due to underperformance and the challenging retail environment.
- Despite improvements, the adjusted EBITDA remains negative, indicating ongoing financial challenges.
- The digital segment is not a priority for market share growth, which may limit future expansion opportunities in this area.
- Americanas SA (BSP:AMER3) is still under judicial recovery supervision, with an expected exit not anticipated before 2026.
Q & A Highlights
Q: What is the estimate for Americanas to leave the judicial recovery? Is there a date already in plan?
A: Camille Faria, Financial Director and IR Director, explained that the judicial recovery process is expected to last around three years from the settlement of the plan. Although significant progress has been made, the company does not anticipate exiting before 2026, but will monitor the situation for any changes.
Q: How do you finance the working capital from now on? Do you understand the positive EBIT due to the growth of revenues?
A: CEO Leonardo Coelho stated that revenue growth is expected from an adjusted product mix and internal synergies. Camille Faria added that the company has financing lines, including BRL1.5 billion of receivables guaranteed by the judicial recovery plan, to support working capital needs.
Q: Discuss the impact on the relationship with suppliers and market position after the judicial recovery.
A: Leonardo Coelho noted that the judicial recovery process has brought Americanas closer to its suppliers, enhancing collaboration. While the company has gained market share in physical stores, digital market share is not a current focus, as the strategy prioritizes customer value and profitability.
Q: Is it still necessary to close some stores to balance operations?
A: Leonardo Coelho confirmed that some unprofitable stores will be closed, but new stores will open in regions with demand. The net effect will be fewer closures over the next 12 to 15 months, reflecting a challenging retail environment.
Q: Does it make sense to think in terms of CapEx for the company in the next 12 to 24 months?
A: Leonardo Coelho stated that CapEx will focus on customer value, including store improvements and IT infrastructure. The company aims to align operational expenses with gross margins, maintaining a lean structure to enhance operational efficiency.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
