Q2 2024 Magazine Luiza SA Earnings Call Transcript
Key Points
- Magazine Luiza SA (MGLUY) achieved a historical 7.9% adjusted EBITDA margin, surpassing market expectations.
- The company posted a 62% growth in EBITDA, marking the third consecutive quarter of net income.
- Physical stores showed exceptional performance with a 16% same-store sales growth, the best since Q3 2020.
- The partnership with AliExpress is expected to significantly boost online sales and expand product offerings.
- Luizacred returned to profitability with a BRL71 million profit, a significant improvement from a BRL16 million loss in Q2 2023.
- High interest rates continue to pose a challenge, impacting financial expenses.
- The company had to pay BRL3 billion in short-term debt, which affected cash flow.
- E-commerce sales grew only 1%, indicating slower growth compared to physical stores.
- The telephony category underperformed, affecting overall 1P sales.
- The company had to reinforce provisions related to default, adding BRL200 million to liabilities.
(interpreted) Good day, everyone. Thank for waiting. And welcome to Magalu's conference call regarding its quarterly results. (Operator Instructions) We informed that this event is being recorded and will be available on the company's IR website at ri.magazineluiza.com.br, where you can find also the earnings release and the presentation in both Portuguese and English. The link to the presentation in English is also available in the chat. (Operator Instructions) I now would like to turn the floor now to Frederico Trajano, CEO of the company. Please Mr. Trajano, the floor is yours.
(interpreted) Good morning, everyone. Thank you for joining us in this conference call to discuss second-quarter â24 earnings results of Magalu. Again, I am here, and I am joined by our complete leadership team. Our officers are here, and all of us will be available to answer your questions at the end of the presentation. I intend to make a very objective presentation, so we
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