Q3 2024 C&A Modas SA Earnings Call (English, Portuguese) Transcript
Key Points
- C & A Modas SA (BSP:CEAB3) reported a strong net revenue growth of 16.7%, reaching BRL1.8 billion.
- The company achieved a record gross margin for apparel at 55.1%, marking the 13th consecutive quarter of growth.
- EBITDA margin increased by 4.4 percentage points to 17.6%, indicating strong financial discipline.
- The company reversed its previous year's Q3 loss to an adjusted net profit of BRL52 million.
- C & A Modas SA's app saw a 120% increase in monthly active users, becoming the most downloaded fashion app in Brazil in September.
- Despite the growth, the average sales price was slightly below inflation, indicating potential pricing pressures.
- Operating expenses increased year over year, although they remained stable as a percentage of net revenue.
- The company is facing challenges with supplier financing and inventory management, as indicated by a worsening year-over-year comparison.
- C & A Pay's share in retail decreased slightly compared to the previous quarter, despite a 32% increase in net revenue.
- The company is accelerating the demobilization of the fashion TriC category, which may impact short-term sales dynamics.
Good morning. Ladies and gentlemen, welcome to C&As conference call to announce the results of quarter 3, 2024. Today, we have here with us Mr. Paulo Correa Jr., CEO and Laurence Beltrão Gomes, CFO and IR director.
(Operator Instructions)
Let me mention that any forward-looking statements that may be made during this conference call relative to the business perspectives of the company projections, operational and financial targets are based on beliefs and assumptions of the company's management. As well as information currently available to the company.
These forward-looking statements are no guarantee of performance. They involve risks and uncertainties and premises and they refer to future events and therefore depend on circumstances that may or may not occur. Investors and analysts should understand that general conditions, industry conditions and other operational factors may lead to results that differ materially from those expressed in such forward-looking statements.
Now, I'd like to hand the conference over to Mr. Paulo Correa Jr.a to start his
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