Retailer announces payment of R$2.1 billion in promissory notes and bets on digital to advance
Magalu zeroed out its short-term debt in April. The company announced the settlement of R$2.1 billion in promissory notes, with money from its cash flow, without rolling over the value. The company had been questioned about this due date and had already informed that it would make the payment.
Magazine Luiza’s next debt maturities are in 2025 and 2026. This leaves room for the company to work on its margins in the coming quarters.
The company’s operating cash generation was R$1.5 billion in the 4th quarter of 2023. Magalu ended 2023 with a total cash position of over R$9 billion, an increase of R$1 billion compared to the closing in September last year.
As a result, net cash reached R$1.7 billion. In January, the company received a capital increase of R$1.25 billion.
The company stated that the focus in the coming months is to invest in its level of service, such as fast delivery and user experience, in addition to its technology platform. Magalu recently launched its cloud service, Magalu Cloud.
Disclaimer: Magalu’s CEO, Frederico Trajano, is minority shareholder of the digital newspaper Power360.
