IMC (MEAL3) shares plummet by double digits after earnings report By Investing.com

Investing.com – IMC’s balance sheet did not please the market and the company fell by double digits in trading this Wednesday, 27th. At 1:37 pm (Brasília time), the shares fell 18%, to R$1.73. The company operates brands such as Frango Assado, Pizza Hut and KFC in Brazil.

The company presented a net loss of R$76.2 million in the fourth quarter of 2023, against a profit of R$122.6 million recorded a year earlier. Ebitda totaled R$63.3 million, an annual decrease of 36.4%.

The company’s consolidated net revenue in 4Q23 was R$570.1 million, an increase of 7.4% compared to 4Q22. Furthermore, it ended the period with a total cash position of R$234.1 million and net debt of R$295.4 million.

The quarter was challenging for the segment, in the company’s opinion, but the financial position improved, in management’s view, with the issuance of R$460 million in debentures to restructure the profile and reduce the cost of debt.

“We have taken important steps to reduce the complexity of managing IMC and focus resources on assets with the greatest potential for generating value”, pointed out the company in an earnings release.

“Since the beginning of our journey, we have made unlimited efforts to transform IMC into a more competitive, focused, profitable and, consequently, more sustainable Company”, adds IMC.

What InvestingPro says

O InvestingPro, Investing.com’s premium platform, points out that the company operates with a high debt load, and with low price performance over the last decade, according to Protips. ProTips are a new tool from InvestingPro, which provide quick and uncomplicated insights into companies, aiming to optimize and provide more basis for investors’ decision-making.

The company’s fair price is valued at R$2.71, according to six investment models.

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