Magazine Luiza Delivers Fifth Straight Profitable Quarter with 37% Profit Surge

Magazine Luiza (MGLU3) reported its fourth quarter 2024 financial results on March 14, posting adjusted net income of R$139 million ($23.2 million). This marks a 37% year-over-year increase and the company’s fifth consecutive profitable quarter.

The Brazilian retail giant achieved full-year 2024 adjusted profit of R$276.7 million ($46.1 million), successfully reversing the R$550.1 million ($91.7 million) loss recorded in 2023.

Adjusted EBITDA reached R$846.2 million ($141 million) in Q4, up 11.9% from the same period last year. EBITDA margin expanded to 7.8%, representing a 0.6 percentage point improvement.

Total revenue grew to R$10.7 billion ($1.78 billion), a 2.3% increase from Q4 2023. Total sales for the quarter hit R$18.4 billion ($3.07 million), with annual sales reaching R$65 billion ($10.83 billion).

The company generated R$2.1 billion ($350 million) in operating cash during Q4, 36% higher than the previous year. Magazine Luiza reduced its debt by nearly R$3 billion ($500 million) throughout 2024, ending with a strong cash position of R$7.9 billion ($1.32 billion).

Physical store sales grew 6% to R$6 billion ($1 billion), with same-store sales increasing by 8%. E-commerce maintained R$13 billion ($2.17 billion) in sales, with marketplace transactions representing 40% of online business.

Magazine Luiza’s Strong Financial Performance

“The Magalu has always been strong in durable goods, but these categories depend on interest rates and credit,” stated CFO Roberto Bellissimo. He emphasized how the company’s ecosystem diversification strategy has created resilience against high interest rates.

Luizacred, the financial services arm, posted quarterly profits of R$145 million ($24.2 million) and annual profits of R$295 million ($49.2 million). The division achieved an impressive 30.8% return on equity while maintaining historically low delinquency rates.

MagaluBank processed R$27.4 billion ($4.57 billion) in payment volume during Q4. Credit card volume grew 4.8% to reach R$16.3 billion ($2.72 billion), further strengthening the company’s financial services segment.

The results validate Magazine Luiza’s successful transformation from a traditional retailer to a comprehensive retail ecosystem. The company continues to focus on technology investments and profitability while pursuing growth across all channels despite Brazil’s challenging macroeconomic environment.

LatAm Markets: Live Signals → — real-time movers, turnover leaders and FX across Latin America.