Why Luiza Magazine (MGLU3) Posts Its Worst Loss Since Its IPO In 2011 – Money Times

a Louisa Magazine (MGLU3) reported the biggest loss (R$391 million) since it carried out its public stock offering (IPO) in 2011, a TradeMap survey conducted on request shows. Money Times. Until then, the negative mark was from the third quarter of 2022, when the company reported a loss of R$166 million.

Even with a 161% deterioration in form, the XP He says the numbers came out as expected. Analysts Daniela Egger, Gustavo Sendai and Thiago Suedt point out that the increase in Silicwhich is currently at 13.75%, in addition to the accelerating anticipation of credit card receivables, causing financial expenses to rise.

In addition, the company burned cash of R$3.2 billion, although it improved by R$416 million over the prior year, as the supplier line more than offset deteriorating inventory dynamics.

a XP It highlights three points:

• The company officially announced changes in the board of directors, with Carlos Mouawad taking over fintech, Giulio Trajano taking over KaBum, and Graciela Kumruian taking over Netshoes;
• Magalu provided more detail on its strategic goals, including restoring historic profitability for 1P (private sales), expanding fulfillment to other regions in 2023, and improving the number of different programs used by the company’s ecosystem;
• LuizaCred’s lag rates worsened quarter-on-quarter and year-over-year, with over 90 lags increasing by 4 percentage points year-over-year and 0.4 percentage points quarter-on-quarter.