Guararapes (GUAR3), the controlling company of Riachuelo, one of Brazil's largest fashion retailers, released its financial results for the first quarter of 2024 (Q1 2024). The company reported a negative net result, with a loss of R$116.9 million. This value represents a decrease of 33.4% compared to the same period of the previous year.
In terms of adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), Guararapes Riachuelo showed a significant growth of 142.1% in the first quarter of 2024, for a total of R$ 211.8 million. Gross EBITDA margin was 10.6%, compared to 4.8% in the previous year. This performance is due to several factors, such as the increase in consolidated net revenues, which reached R$1.99 billion, representing an increase of 9.1% compared to the first quarter of 2023.
Regarding revenues, the total merchandise area amounted to R$1.39 billion, an increase of 11.4% compared to the first quarter of 2023. At Midway Financeira, net revenues amounted to R$571.4 million, an increase of 3.7% in the same period. Finally, at Midway Mall, net revenues rose by 15.2%, reaching a total of R$26.5 million in the first quarter of 2024.
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Same store sales (SSS) in physical and digital channels rose 9.6%, compared to a 0.7% increase in the first quarter of last year.
GUAR3: Results
Furthermore, the company was able to reduce its costs of goods and services sold by 9.7%, resulting in a consolidated gross margin of 58.6%, compared to 58.8% in the previous year.
This performance was driven by gross margin development in the merchandise segment, which resulted in a decline in COGS (cost of goods sold).
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Regarding debt, Guararapes Riachuelo ended the quarter with net debt of R$940.2 million, a significant decrease compared to the same period in 2023, when it was R$1.717 billion.
The total leverage index was 0.8 times in March 2024, compared to 1.0 times in December 2023 and 1.7 times in March 2023.
(Report written with the help of artificial intelligence. Editing: Rodrigo Petri)
Charlotte Whitmore is a contributor at Mediarunsearch.co.uk, covering a broad range of topics including news, politics, business, technology, sport, entertainment, and lifestyle. She focuses on delivering clear, balanced reporting and practical information that helps readers stay informed about current events and emerging developments. Her work highlights stories that matter to everyday audiences, with an emphasis on accuracy, relevance, and accessible journalism that keeps readers connected to the issues shaping the UK and beyond.