Americanas reports a Q1 loss of 496 million reais ($87.98 million), influenced by Easter timing. Adjusted EBITDA shows a negative 20 million reais. The company seeks recovery while managing financial difficulties post-accounting fraud scandal.
Brazilian retail giant Americanas AMER3 reported a significant net loss of 496 million reais, equivalent to approximately $87.98 million, for the first quarter of the year. This marks a notable decline, as the company had generated a profit of 453 million reais during the same period last year. The primary reason cited for such a drastic turnaround is a mismatch related to the Easter holiday calendar, which has significantly impacted their financial performance this year.
Despite the loss, the adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was recorded at a negative 20 million reais, showing a steep drop compared to a positive figure of 243 million reais in the previous year. Leonardo Coelho, Chief Executive Officer of Americanas, highlighted the importance of Easter for the company, equating its significance to that of the Christmas season. He expressed that, had the Easter holiday occurred earlier, the company would have seen markedly different results.
In terms of revenues, Americanas experienced a 17.4% decrease year-on-year, bringing total net revenue for the quarter down to 3.06 billion reais. Coelho remains optimistic, stating that a comparison of the first four months of 2025 to those of the previous year would reveal an approximate 10% growth in revenue. This projection underscores the potential for recovery, despite the challenging circumstances currently faced by the company.
The company continues to navigate through bankruptcy protection, following a significant crisis involving the revelation of a multi-billion dollar accounting fraud that implicated previous executives. Coelho expressed confidence in the chain’s gradual progress, asserting that it has been improving its financials on a quarterly basis. However, he acknowledged that achieving full recovery will require time and effort.
In response to ongoing challenges, Americanas closed around 80 stores in 2024 as part of a restructuring effort. However, the company is not stopping there. Plans are underway to enhance the performance of its underperforming locations, alongside a strategy to open new sales outlets in the Northeast region later this year. Coelho’s strategic focus appears aimed at revitalizing the brand despite recent hurdles, demonstrating an intent to rebound in the retail market.
In summary, Americanas has experienced a notable shift from profit to a considerable loss in the first quarter, significantly influenced by the timing of the Easter holiday. The retailer is actively addressing its financial difficulties through store closures and a strategy to open new locations. The CEO remains hopeful about future growth prospects as the company aims for recovery and stabilization amidst ongoing challenges.
Original Source: www.tradingview.com
