Americanas (AMER3) Q4 2023 & Q2 2024 earnings summary

Executive summary

• Successfully completed judicial recovery plan with major debt restructuring, capital increase, and transformation of shareholding structure, restoring financial stability and enabling operational focus.

• Operational turnaround underway, with improved profitability, gross margin expansion, and double-digit same-store sales growth in 1H24, driven by a strategic shift to physical retail and digital downsizing for profitability.

• Enhanced supplier relationships, operational agility, and customer-centricity, with store-level assortment optimization and store portfolio rationalization.

• Appointment of new leadership in key subsidiaries and business units, with ongoing asset monetization and strategic reviews.

• Discovery of accounting fraud in 2023 led to independent investigation and identification of responsible parties.

Financial highlights

• 2023 GMV was R$22.8 billion, down 45.9% year-over-year; 1H24 GMV down 9.0% to R$10.1 billion, with B&M GMV in 1H24 up 15.9% to R$7.2 billion and digital GMV down 55.3% to R$1.6 billion.

• 2023 net revenue fell 42.1% to R$14.9 billion; 1H24 net revenue down 2.6% to R$6.8 billion.

• Gross margin improved by 9.6 p.p. in 2023 to 29.2% and reached 34.5% in 1H24, up 8.6 p.p. year-over-year.

• Adjusted EBITDA (ex-IFRS 16) in 1H24 was -R$240 million, an 85.7% improvement versus 1H23; adjusted EBITDA at R$265 million, up 123.5% year-over-year.

• SG&A reduced from 42% of net revenue in early 2023 to 32.1% in 1H24.

Outlook and guidance

• Achieved 2025 net debt targets ahead of schedule, with current net debt at R$1.6 billion and cash-neutral position as of August 2024.

• Guidance discontinued temporarily to reassess operational estimates and leverage, reflecting uncertainty in forecasting performance; plans to resume guidance in the near future.

• Focus remains on operational efficiency, cash generation, and selective store openings and closures based on profitability.