Lojas Renner had a net profit of BRL 481.8 million in the fourth quarter of 2022, up 15.9% compared to a year earlier, slightly lower than expected by the market, amid the drop in same-store sales and loss with services financial.
Analysts, on average, projected Renner’s profit in the quarter of R$ 515.8 million, according to data from Refinitiv.
Adjusted earnings before taxes, interest, depreciation and amortization (Ebitda) stood at R$918.6 million from October to December, up 18.4% year-on-year and above the average of estimates compiled by Refinitiv of R$ 840.1 million. The adjusted Ebitda margin grew 4 percentage points, to 25.8%, informed the company this Thursday (16).
Renner’s retail net revenue was practically stable in the quarter compared to the previous year, while same-store sales fell by 2.5%.
The company attributed the result of retail sales to lower than usual temperatures, a lower flow due to the elections and the World Cup, as well as the impact of inflationary pressure and household debt on demand for clothing.
Operating expenses – general, sales and administrative – increased 5.2% in 12 months, to R$1.13 billion, impacted by the acceleration of operations at Renner’s new distribution center in Cabreúva and the carry-over of investments made in recent years, as well as the effect of lower sales, according to the company.
Perform
The result of financial services, a segment that the market is watching, was negative at R$ 34.6 million, after a positive figure at R$ 51.6 million a year earlier. The total credit portfolio grew 32.2% in the quarter compared to the same period of the previous year, and Renner said that its delinquency over 90 days “remained stable” compared to the third quarter as a proportion of the portfolio.
Realize, Renner’s financial arm, assigned a loan portfolio overdue for more than 360 days of R$ 19.8 million, according to the results report.
In the third quarter, Realize had sold R$ 23.8 million from the portfolio overdue for more than 360 days, and the retailer’s management said in a conference with analysts in November that it was evaluating new operations of the type.
Regarding 2023, Renner said that its Youcom brand maintained sales at the beginning of the year in line with expectations, but did not provide further details.
Source: CNN Brasil
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