4 days ago
Americanas SA (BSP:AMER3) Q2 2025 Earnings Call Highlights: Resilient Growth Amidst Challenges
GMV Growth: Physical stores GMV increased by 21% from the first half of 2023 to the first half of 2025.
Same-Store Sales: Grew by 11.8% in the first half of 2025 compared to the same period last year.
Easter Sales: Reached over BRL 1.2 billion, accounting for around 17% of total company revenue for the semester.
Gross Margin: Consolidated gross margin at 28.7%, a decline of 5.2 percentage points compared to the same period last year.
Adjusted EBITDA: Positive BRL 339 million for the first half of 2025, compared to BRL 268 million last year.
Net Debt: Approximately BRL 372 million at the end of the semester.
Cash and Equivalents: Total liquidity of BRL 2 billion at the end of the semester, with BRL 775 million in cash and equivalents.
Sales per Square Meter: Increased by 14%.
Operating Costs: Reduced by 1 percentage point.
Warning! GuruFocus has detected 6 Warning Signs with BSP:AMER3.
Release Date: August 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Americanas SA (BSP:AMER3) demonstrated consistent financial and operational results, showing sequential improvement quarter over quarter.
The company surpassed historical figures for the Easter event, with sales reaching over BRL1.2 billion and market share gains exceeding 50% of the retail segment.
Americanas SA's operational efficiency strategy led to improved costs and expense management, contributing to a significant rise in adjusted EBITDA.
The company has been successful in optimizing its store footprint, leading to higher gross revenue per square meter and improved in-store service.
Americanas SA's loyalty program and CRM platform are set to enhance customer engagement and profitability through personalized offers and interactions.
Negative Points
The company's consolidated profit decreased by 14% compared to the previous year, with a decline in gross margin.
Americanas SA continues to face challenges due to the macroeconomic environment in Brazil and globally.
The company experienced a significant reduction in e-commerce sales, with a nearly 50% decline, as it shifts focus away from a large marketplace model.
There are still deficit stores within the portfolio, although efforts are being made to improve their performance or close them if necessary.
The judicial recovery process, while largely completed, remains a bureaucratic issue that the company must manage.
Q & A Highlights
Q: How is the judicial recovery process progressing? A: Leonardo Pereira, CEO: The judicial recovery was essentially executed in 2024, with debt restructured from $42 billion to $1.8 billion in debentures, plus $475 million in liabilities with suppliers. We are now focused on operational recovery, with the judicial process being more of a bureaucratic formality.
Q: Is there a plan for Americanas to become a supermarket chain? A: Leonardo Pereira, CEO: No, Americanas does not intend to become a supermarket chain. Our focus is on serving customer needs related to joyful moments and indulgence, with a value proposition distinct from supermarkets.
Q: Are there plans to expand proprietary product offerings? A: Leonardo Pereira, CEO: Yes, we have nearly 30 proprietary brands and plan to strengthen them in our stores. We aim to align these brands with our client strategy and enhance their presence in our stores.
Q: What criteria are used to decide on store closures? A: Leonardo Pereira, CEO: We compare stores within the same cluster and act on levers like renegotiating agreements and adjusting headcount to improve profitability. Stores that cannot be improved are closed.
Q: How is the sale of H&T progressing, and what impact will it have on Americanas? A: Camille Loyo Faria, CFO: The sale is part of the judicial recovery plan. We believe H&T is a valuable asset and expect it to positively impact Americanas by reducing debt, as proceeds will be used to settle liabilities.
Q: How is Americanas working to re-engage with investors? A: Leonardo Pereira, CEO: We are gradually seeing renewed interest from institutional investors as we consistently improve our results. We expect this interest to grow as we continue to demonstrate progress.
Q: What is the status of the Gallery project, and will it be expanded? A: Leonardo Pereira, CEO: The Gallery project is operational in nearly 10% of our stores with three partners. We plan to expand this initiative with additional partners by the end of the year.
Q: How does Americanas plan to balance its physical and digital channels? A: Leonardo Pereira, CEO: We have shifted our digital strategy to focus on supporting our physical stores through initiatives like ship-from-store and take-out-at-store. This approach is more profitable than the previous marketplace model.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
