Magazine Luiza overcomes one-year loss in second quarter

Overcoming last year's losses, it was announced this Thursday (8) that Magazine Luiza recorded a net profit of R$23.6 million in the second quarter. In the same period of 2023, it had a loss of R$301.7 million.

Loss reversed

Adjusted, net income was R$37.4 million in the period, also reversing the loss of R$198.8 million, according to 1-year earnings reports.

Sales growth in one year in physical stores, e-commerce and marketplaces was 4.5%, totaling R$15.4 billion. This was due to a 0.9% increase in total sales in e-commerce and 14.2% in physical stores.

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_{Pedestrians pass in front of the Magazine Luiza store in the city of São Paulo (Photo: reproduction/Getty Images embed)}

Profit exceeds negative balance

R$ 2 billion is the net cash value, closing the second quarter, with a negative balance in 57 stores, with 1,246 stores compared to the same period in 2023.

With an influence on the operating result and also on working capital, cash generation was R$2.2 billion last year.

The company recorded a total of R$710.7 million in profit without taxes, interest, depreciation and amortization EBITDA, an increase of 61.6% year-on-year, while EBITDA rose to 130.7%, or R$655 million on the same basis.

Founded in 1957, Magazine Luiza is a large digital sales platform with 1,303 physical stores spread across 20 Brazilian states. It has around 39,000 employees and 22 distribution centers. With so much time in the market, it is expected not only to be profitable but also to remain in the market and to constantly advance and grow, increasingly overcoming potential losses.

Featured photo: facade of Magazine Luiza store in the city of Salvador, Bahia (Reproduction/Joa_Souza/Getty Images embed)