C&A (CEAB3) obtained a net profit of R$70.9 million in the first quarter of 2024, reversing the loss of R$126.3 million recorded in the same period of the previous year.
Despite being driven by the recovery of tax credits, the positive result also reflects the continuous improvement in the fashion retailer’s operational indicators. Even excluding tax credits, the company had an adjusted loss of R$61.4 million.
Regarding operational indicators, C&A’s consolidated net revenue grew 17.1% compared to the previous year, reaching R$1.453 billion, while same-store sales (SSS) of apparel increased 21.9%. This resulted in an adjusted Ebitda of R$180.5 million, representing an increase of 125%, and an adjusted Ebitda margin of 12.4%, an increase of 6 percentage points.
Another highlight of the result was the financial result, which recorded a significant drop of 96% compared to 2023, despite remaining negative at R$3.9 million. Furthermore, the company’s net debt decreased by 30.4%, totaling R$1.046 billion, resulting in leverage (net debt over pre-IFRS 16 adjusted EBITDA of the last 12 months) of 1.5x, a significant improvement compared to to the previous year.
The company
The company is one of the largest fashion retail chains in the world, known for offering affordable clothing, accessories and footwear for the whole family. Founded in 1841 in the Netherlands, the company has a global presence, operating stores in several countries in Europe, North America, South America, Asia and the Middle East.
In Brazil, C&A has been present since 1976 and has established itself as one of the country’s main fashion brands, with hundreds of stores spread throughout the country. The company offers a wide variety of women’s, men’s, children’s and youth fashion products, as well as accessories and beachwear and lingerie items.
With a focus on offering current trends at affordable prices, C&A stands out for its ability to quickly adapt to market changes and consumer preferences, remaining relevant in the fashion scene. Furthermore, the company has invested in sustainability and social responsibility initiatives, seeking to reduce its environmental impact and promote the well-being of the communities in which it operates.
