Magazine Luiza grows in profits and eliminates the chances of losses

Magazine Luiza records a profit of R$70.2 million for the third quarter of 2024. Unlike the loss recorded in the same period in the previous year when it was R$143.4 million.

Without the necessary adjustments, the company obtained a net profit of R$102 million, different from the net negative balance of R$498.3 million at the same time in 2023. Furthermore, in the accumulated result for the first nine months of 2024, the net gain is at R$ 137.4 million, compared to the adjusted loss of R$ 651.6 million, recorded in the previous period.

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_{Luiza Helena Trajano, director of Magazine Luiza (Photo: reproduction/Nelson Almeida/AFP/Getty Images Embed)}

Positive balance

In the third quarter of 2024, the company achieved an earnings percentage of 8.7% (in gross earnings), reaching R$2.8 billion overall. In the words of Vanessa Rossini, director of investor relations at Magazine Luiza, she says that these favorable statistics are due to some tactics adopted with the aim of preserving the company's growth and profitability.

The increase in post-pandemic operations, the conglomerate changed its margins and cut expenses, with more advantageous habits when making payments and carrying out a study on who works there.

Shown in the company's balance sheet, total gross revenue is equivalent to R$11.2 billion in 3Q24, in percentage terms, it represents 5.6%, differing from last year. This was leveraged due to the physical store's operations in the e-commerce sector, according to the multinational.

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_{Magazine Luiza store located in São Paulo (Photo: reproduction/Bloomberg/Getty Images Embed)}

Total sales

Overall, R$ 15 billion was reached in the current quarter, with an increase of 4% reaching historic places throughout its trajectory. In physical establishments, the profit margin reached R$5 billion in the quarter, representing 13% of the comparison. However, Magalu increased its market share in the physical world by 0.7 in the quarter.

When it comes to e-commerce, it generated R$11 billion in sales in the cycle, with the Difal (difference between the internal and interstate tax rates), fully transferred, helping a lot in relation to the gross margin. On the other hand, MarketPlace (digital market) reached R$4.5 billion in the same space and accounted for 41% of online sales.

Featured Photo: Facade of the physical store (reproduction/Magazine Luiza)