Release Date: May 15, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Americanas SA (BSP:AMER3) reported a double-digit growth in same-store sales for the first four months of 2025, reflecting strong operational performance.
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The company successfully launched a new credit card in partnership with Brazil Car, aiming to issue 1 million cards within 12 months, enhancing customer loyalty and revenue.
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Americanas SA (BSP:AMER3) achieved a 14.2% growth in gross same-store sales in the first four months of 2025, driven by a strong Easter performance.
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The company has made significant progress in cost optimization, with a 10.9% reduction in SG&A expenses compared to the same period last year.
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Americanas SA (BSP:AMER3) is focusing on modernizing its technology infrastructure, which is expected to improve the shopping experience and operational efficiency.
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The financial results for Q1 2025 were negatively impacted by the timing mismatch of Easter, which occurred in Q2 instead of Q1.
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Gross profit and gross margin declined compared to the same period in 2024, partly due to extraordinary events that benefited the previous year’s results.
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The company is still undergoing judicial recovery, which imposes certain restrictions and challenges on its operations.
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Americanas SA (BSP:AMER3) experienced a decline in the number of units sold during Easter due to higher chocolate prices and declining consumer purchasing power.
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The adjusted EBITDA for Q1 2025 was negative, reflecting the absence of Easter revenue in the quarter and extraordinary effects from the previous year.
Q: Using the same adjustment for revenue, including Easter, would EBITDA have been positive? A: (CFO, Camil Ferrias) It’s challenging to calculate precisely, but if we adjust for Easter, EBITDA for Q1 2025 would have been significantly better than Q1 2024. The difference of 150 million BRL could have been compensated by the Easter event, which generated 1.2 billion BRL in revenue. Thus, it’s reasonable to estimate that EBITDA could have been positive.
Q: What is Americanas’ strategy to increase sales beyond seasonality? A: (CEO, Leonardo Coelho) While seasonality is inherent to our business, we are focusing on improving performance both during and outside of seasonal events. Initiatives like the new credit card and loyalty program, as well as expanding our product assortment, aim to enhance customer engagement year-round. Our goal is to simplify and improve the customer experience continuously.
Q: When can we expect Americanas to exit judicial recovery? A: (CEO, Leonardo Coelho) We anticipate being under judicial recovery for two years. After fulfilling our obligations, the judge will evaluate our compliance. We expect to exit judicial recovery promptly, as we are on track with our debt payments and other commitments.
Q: How does Americanas plan to handle the macroeconomic challenges affecting the retail sector? A: (CEO, Leonardo Coelho) We remain vigilant to macroeconomic impacts and are actively seeking ways to mitigate them. Our team has been exploring new business opportunities, including partnerships in China, to diversify and strengthen our operations.
Q: Can you elaborate on the new credit card initiative? A: (COO, Fernando Soares) The new credit card, launched in partnership with Brazil Card, is a key part of our loyalty program. It offers benefits like interest-free installments and reward points. We aim to issue 1 million cards within 12 months to enhance customer loyalty and increase revenue.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.