Americanas Reports First Quarter Loss Amid Easter Calendar Impact

Americanas reports Q1 loss of 496 million reais, citing Easter calendar as a factor. Net revenue fell 17.4% to 3.06 billion reais. CEO Leonardo Coelho suggests recovery could show a 10% revenue increase comparing early 2025 to 2024. Company remains under bankruptcy protection after accounting scandal, plans store openings in Northeast Brazil.

Brazilian retail giant Americanas, known by its stock symbol AMER3, reported a net loss of 496 million reais, approximately $87.98 million, in the first quarter of 2023. This figure starkly contrasts with a profit of 453 million reais recorded in the same period last year. The significant loss is attributed to an inconsistency in the Easter calendar, which, according to company leadership, heavily influences sales, much like Christmas, as noted by Chief Executive Leonardo Coelho during a Reuters interview.

In more detail, Americanas highlighted an adjusted negative EBITDA of 20 million reais in this latest quarter, a sharp decline from the positive 243 million reais noted a year prior. Coelho reiterated that if one were to evaluate the first four months of 2025 against the same stretch in 2024, a revenue increase of about 10% would likely have been evident.

Despite the downturn in performance, the retailer experienced a decline in net revenue, dropping 17.4% year-on-year to reach 3.06 billion reais. Americanas continues to navigate a complex financial landscape, still under bankruptcy protection following the reveal of a multi-billion dollar accounting scandal that implicated former executives.

Coelho expressed a degree of optimism, indicating that the company has been making sequential improvements in its financial standing, though he acknowledged that recovery is a gradual journey. Furthermore, Americanas has taken actions such as closing approximately 80 stores in 2024, while also strategizing to enhance the operations of its struggling locations. Looking ahead, the company plans to expand, with new outlets expected to launch primarily in the Northeast region of Brazil in the latter half of this year.

In summary, Americanas has reported a significant financial setback for the first quarter of 2023, reversing last year’s profits primarily due to the Easter calendar’s impact on sales. The chain is striving to recover from past turmoil linked to accounting fraud, aiming for growth despite ongoing challenges. With plans for new store openings and a focus on improving current operations, the company is attempting to stabilize its standing in the Brazilian retail market.

Original Source: www.tradingview.com