Brazilian Retail Giant Americanas Reports R$586 Million Loss in Fourth Quarter 2024

Americanas (AMER3), one of Brazil’s largest retailers currently operating under judicial recovery, reported a net loss of R$586 million ($102.8 million) in the fourth quarter of 2024.

The company reversed its previous profit of R$2.56 billion ($449.1 million) from the same period in 2023, according to financial results released Wednesday. The struggling retailer continues to face significant challenges following the accounting fraud scandal discovered in early 2023.

Adjusted EBITDA reached R$180 million in Q4 2024, a substantial improvement from the negative R$1.18 billion ($207 million) reported in Q4 2023. Consolidated net revenue fell to R$4.3 billion ($754.4 million), representing a 4.5% decline compared to the same quarter last year.

Physical retail has become the company’s lifeline amid ongoing restructuring efforts. The Gross Merchandise Volume (GMV) for physical stores grew 7.1% in Q4 2024, now accounting for 79% of total GMV.

Total GMV reached R$6.5 billion ($1.14 billion), reflecting a 2.3% drop year-over-year due to significant contraction in digital sales. Digital GMV plummeted by 47.0% in the quarter.

The company attributed this decline to the strategic discontinuation of first-party inventory sales that were prominent in Q4 2023. Same-store sales showed positive momentum with 15.0% growth during the quarter, driven by strong performance during Black Friday and Christmas.

For the full year 2024, Americanas posted a consolidated net revenue of R$14.3 billion ($2.5 billion), down 2.8% from 2023. Total annual GMV decreased by 5.1% to R$21.4 billion ($3.75 billion), with physical retail growing 11.9% while digital sales contracted by 48.9%.

Americanas’ Struggle for Recovery Amid Market Skepticism

The company’s stock price reflects investor skepticism about its recovery prospects. Americanas shares plunged 91.64% during 2024, trading at R$7.61 in December.

This dramatic decline underscores the market’s lack of confidence in the company’s ability to overcome its financial troubles. Americanas has been implementing a comprehensive judicial recovery plan approved in February 2024.

The plan includes a R$24 billion ($4.21 billion) capital injection to support restructuring operations. An extraordinary general meeting in May 2024 approved the capital increase involving minority stake purchases by major Brazilian banks.

The recovery plan involves significant shareholder participation from investors linked to Jorge Lemann, Marcel Telles, and Carlos Alberto Sicupira. Brazilian antitrust watchdog Cade approved the capital restructuring in July 2024, marking a crucial step in the company’s efforts to regain financial stability.

The retailer continues to face legal scrutiny. Brazilian Federal Police investigated former executives, including ex-CEO Miguel Gutierrez, for their roles in the accounting fraud that created a R$25.3 billion gap through fabricated transactions and manipulated advertising budgets.

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