Brazil's Magazine Luiza posts 37% increase in fourth-quarter adjusted profit

SAO PAULO, March 13 (Reuters) - Brazilian retailer Magazine Luiza MGLU3.SA reported on Thursday an adjusted net profit of 139.2 million reais ($24 million) for the fourth quarter, up some 37% from a year earlier.

It also came above the 126.9 million real profit expected from analysts polled by LSEG.

WHY IT'S IMPORTANT

Magazine Luiza is one of Brazil's largest retailers.

BY THE NUMBERS

Core earnings, or adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), increased about 12% year-on-year to 846.2 million reais. Analysts had estimated 845.9 million reais.

Adjusted EBITDA margins rose by 0.6 percentage points in the quarter from the same period of 2023, to 7.8%.

Magazine Luiza's net revenue stood at 10.8 billion reais, up 2.3% year-on-year as total sales, which include brick-and-mortar stores and e-commerce operations, rose 2.6%.

KEY QUOTES

"Our main focus continues to be on expanding our margins," investors relations director Vanessa Rossini told Reuters, adding she sees room for further profitability growth in 2025 after the increase last year.

In the earnings report, Magazine Luiza said 2025 will conclude its strategic cycle started in 2021, saying it is now preparing for a new cycle more focused on artificial intelligence.

($1 = 5.7991 reais)