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Magazine Luiza (MGLU3) investor relations material

Magazine Luiza Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary8 Aug, 2025

Executive summary

  • Adjusted EBITDA reached R$727 million (8.0% margin), up 2.3% year-over-year, driven by physical store growth, expense control, and Luizacred's strong results.

  • Total sales were R$15.3 billion, with physical store sales up 3.5% (5% excluding flood-impacted regions) and high-ticket online items growing 5%.

  • Maintained expense control, reducing SG&A and generating R$497–597 million in operating cash, with inventory down R$150 million.

  • Diversified business model with three growth engines (1P, 3P, physical stores) and ecosystem expansion provided resilience.

  • Luizacred delivered net income of R$101.8–102 million, with a 19–19.5% ROE and improved delinquency rates.

Financial highlights

  • Net revenue increased 1–1.4% year-over-year to R$9.1 billion; gross margin at 30.5%, down 0.4 p.p.

  • Adjusted net income was R$1.8 million; including non-recurring items, net loss was R$24.4 million.

  • Operational cash flow was R$597 million in the quarter and R$2.6 billion over the last twelve months.

  • Net cash position of R$1.8 billion and total cash of R$8.0 billion as of June 2025.

  • Financial expenses increased due to a rise in interest rates from 10% to 15% year-over-year.

Outlook and guidance

  • Focus on profitability, operational efficiency, and expanding the ecosystem, with continued investment in technology and logistics.

  • Launch of Galeria Magalu and MagaluPay SCFI to enhance multichannel experience and financial services.

  • Anticipates capturing growth above inflation and market once interest rates decline.

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Frequently asked questions

Magazine Luiza S.A. engages in the retail sale of consumer goods. It operates through the following business segments: Retail, Multi-Channel and Financial Services.  Retail segment offers products directly to consumers through its retail stores in Brazil and online store www.magazine.com.br. Multi-Channel segment sells products through the Magazine Luiza Beauty e Perfumaria stores, Ponto Frio and Casas Bahia stores (through a third party distributor), as well as other sales channels such as Amazon.com, Exito.com and through themailr.com.br when customers purchase products through these channels on their own initiative or with the assistance of Magazine Luiza's call center agents responsible for calling potential customers during their work hours to invite them to visit Magazine Luiza's physical and virtual stores without expressly disclosing that they are employed by Magazine Luiza, regardless of the customer response to their solicitation.

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