Guararapes (GUAR3), controlling company of Riachuelo, one of the largest fashion retailers in Brazil, released its financial results for the first quarter of 2024 (1Q24). The company reported a negative net result, with a loss of R$116.9 million. This value represents a reduction of 33.4% compared to the same period of the previous year.
With regard to adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), Guararapes Riachuelo showed significant growth of 142.1% in 1Q24, totaling R$211.8 million. The consolidated EBITDA margin totaled 10.6%, compared to 4.8% a year earlier. This performance is the result of several factors, such as the increase in consolidated net revenue, which reached R$1.99 billion, representing an increase of 9.1% compared to 1Q23.
In relation to revenues, the merchandise area totaled R$1.39 billion, an increase of 11.4% compared to 1Q23. At Midway Financeira, net revenue was R$571.4 million, an increase of 3.7% in the same period. Finally, at Midway Mall, net revenue grew by 15.2%, totaling R$26.5 million in 1Q24.
Continues after advertising
Same-store sales (SSS) in the physical and digital channels rose 9.6%, compared to an increase of 0.7% in the first quarter of last year.
GUAR3: Results
Furthermore, the company managed 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% a year earlier.
This performance was driven by the evolution of the gross margin in the Merchandise segment, which presented a cost reduction in COGS (Cost of Goods Sold).
Continues after advertising
Know more:
Check out the results calendar for the 1st quarter of 2024 of the Brazilian Stock Exchange
1st quarter earnings season gains momentum: which stocks and sectors to keep an eye on?
Continues after advertising
Regarding debt, Guararapes Riachuelo ended the quarter with a net debt of R$940.2 million, a significant reduction compared to the same period in 2023, when it was R$1.717 billion.
The leverage indicator totaled 0.8x in March 2024, compared to 1.0x in December 2023 and 1.7x in March 2023.
(Report written with the help of artificial intelligence. Editing: Rodrigo Petry)
 has a 33% lower loss in the 1st quarter){kind=link}