Q4 2024 Magazine Luiza SA Earnings Call Transcript
Key Points
- Magazine Luiza SA (MGLUY) reported a significant increase in EBITDA margin, achieving a 7.8% margin for the year.
- The company posted a fifth consecutive quarter of net income despite high interest rates, with an adjusted net income of BRL277 million for 2024.
- Magazine Luiza SA (MGLUY) successfully expanded its digital ecosystem, including the launch of MagaluAds and Magalu Cloud, contributing to diversified revenue streams.
- The company achieved a 40% growth in EBITDA, reaching BRL3 billion, which was higher than the consensus expectations.
- Magazine Luiza SA (MGLUY) demonstrated strong cash generation, ending the year with a total cash position of nearly BRL8 billion.
- High interest rates remain a challenge, with the Selic rate at 13%, impacting financial expenses.
- Despite improvements, the company still faces pressure to maintain profitability amidst rising costs.
- The fulfillment operation, while growing, is still at 25% penetration, indicating room for improvement.
- There is a need for further technological advancements to enhance seller integration and control in the fulfillment process.
- The company faces competition in the online marketplace, requiring continuous efforts to improve conversion rates and maintain profitability.
Good morning, everyone. Thank you for waiting. Welcome to Magalu's conference call regarding its quarterly results. (Operator's Instructions). We inform that this event is being recorded and will be available on the company's IR website at ir.magazineluiza.com.br, where you can also find the earnings release and presentation in both Portuguese and English. The link to the presentation in English is also available in the chat. (Operator's Instructions).
Now I would like to turn the floor over to Frederico Trajano, CEO of the company. Please, Fred, the floor is yours.
Good day, everyone. Thank you very much for attending our conference call referring to fourth-quarter '24 and full-year 2024. I am here once again with all of the Executive Committee of the company. Myself and all of the officers will be available to answer your questions after my presentation. I will be speaking, as well as Roberto Bellissimo, our CFO, and then the Q&A.
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