Americanas (AMER3) Q4 2023 & Q2 2024 earnings summary

Executive summary

• Judicial recovery and major restructuring executed, including a R$24.5 billion capital increase, significant debt reduction, and transformation of shareholding structure through creditor settlements and equity conversions.

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

• Enhanced governance and compliance measures implemented following discovery of accounting fraud, with ongoing investigations and corrective actions.

• Store network rationalized, closing underperforming stores and optimizing formats, with selective closures and openings planned.

• New leadership and business units established to drive operational optimization and asset monetization.

Financial highlights

• 2023 GMV was R$22.8 billion, down 45.9% year-over-year; 1H24 GMV was R$10.1 billion, down 9.0% year-over-year, 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.

• Net revenue for 2023 was R$14.9 billion (down 42.1% year-over-year); 1H24 net revenue was R$6.8 billion (down 2.6% year-over-year).

• Gross margin improved to 29.2% in 2023 (+9.6 p.p.) and 34.5% in 1H24 (+8.6 p.p.); gross profit in 1H24 was R$2.4 billion.

• Adjusted EBITDA (ex-IFRS 16) in 1H24 was negative R$240 million, an improvement of R$1.5 billion over 1H23; adjusted EBITDA reached R$265 million (up 123.5% vs 1H23).

• Net loss for 1H24 was R$1.4 billion, down 55.9% from 1H23; cash and equivalents at June 30, 2024, were R$3.1 billion.

Outlook and guidance

• Guidance discontinued temporarily to reassess operational estimates and leverage following restructuring; plans to resume guidance in the near future.

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

• Execution of the judicial recovery plan and capital structure adjustments are expected to support future taxable profit.