Q1 2026 Magazine Luiza SA Earnings Call Transcript
Key Points
- Magazine Luiza SA (MGLUY) maintained a strong gross margin of 30.8%, a slight increase from the previous year.
- The company reported an EBITDA of BRL720 million, with a healthy margin of 7.8%, which is historically high.
- Total cash position remains robust at BRL6.2 billion, with a net cash of BRL1.2 billion.
- Same-store sales grew by 6.4% despite challenging market conditions, indicating strong performance in physical stores.
- MagaluAds revenue grew by 20% in the quarter, showing strong performance in multichannel advertising.
- Interest rates remain high, impacting financial expenses and limiting expected reductions.
- The adjusted net result was slightly negative at BRL34 million, affected by financial expenses.
- Online market competitiveness led to a loss of market share in certain categories.
- The company faced challenges in the 1P online segment due to memory chip cost increases and cooler weather affecting sales of air conditioning units.
- The transition of the CDC portfolio to the financial branch is expected to take 9 to 12 months, delaying full realization of benefits.
Magalu's conference will begin in a few moments. Good morning, and thank you for holding. Welcome to Magalu's conference call regarding the quarterly earnings. (Operator Instructions)
We want to inform you that this event is being recorded and will be made available on the company's IR website at ri.magazineluiza.com.br where the earnings release and presentation are already available in Portuguese and English. The link to the presentation in English is also available in the chat. (Operator Instructions)
I would like to give the floor to Fred Trajano, CEO of Magalu. Fred, please, you may take the floor.
Good morning. Thank you very much for attending our earnings conference call on the first quarter of 2026. I'm here again with all of the company's directors, who will be available to take your questions at the end of our call. So let's go to the presentation.
This quarter was very much in line with the previous quarters that we've been
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