Multiplan’s First Quarter 2025: Profit Dips as Expansion and Share Buybacks Shape Strategy

Multiplan, a major Brazilian shopping mall operator, reported a net profit of R$234 million ($41 million) for the first quarter of 2025, down 12.4% from the same period last year.

The company attributed this decline to a planned share buyback program, which raised financial expenses but increased earnings per share by 44.1%.

Multiplan spent R$2 billion ($351 million) on share repurchases, shrinking its outstanding shares and aiming to boost long-term shareholder value. Despite the profit drop, Multiplan’s operational performance reached record levels.

The company’s EBITDA rose 2.5% year-over-year to R$400.6 million ($70 million), slightly above market expectations. The EBITDA margin improved to 76.2%, up from 74.6% a year earlier.

Net revenue remained stable at R$525.7 million ($92 million), with rental income up 5.3% and service revenues up 14.5%. However, other revenues fell sharply, dropping 89.1%.

Total tenant sales at Multiplan’s shopping centers hit R$5.5 billion ($965 million), a 7.9% increase and the highest first-quarter result in the company’s history.

BarraShopping in Rio de Janeiro, the company’s flagship property, saw sales grow 14.9% to R$833.6 million ($146 million). Recently expanded malls like DiamondMall in Minas Gerais and ParkShopping Barigüi in Paraná recorded R$619.8 million ($109 million) in sales, up 19.8%.

Vehicle traffic at these centers rose 9.5%, reflecting higher customer engagement after renovations. Multiplan invested R$120.5 million ($21 million) in mall expansions and upgrades during the quarter.

Multiplan Expands and Strengthens Market Position

The company plans further expansions at Parque Shopping Maceió in Alagoas and MorumbiShopping in São Paulo later in 2025, and at ParkShopping in the Federal District in 2026.

These investments are part of a R$600 million ($105 million) program running through 2026. The company also allocated R$110 million ($19 million) to pay interest on equity and repurchased 1.2 million shares, canceling 6 million treasury shares.

These moves align with Multiplan’s strategy to optimize capital allocation and support future growth. On the digital front, Multiplan’s Multi app surpassed 8.5 million downloads and became its main channel for customer engagement.

The MultiVocê loyalty program saw a 73% increase in registered receipts, involving over 600 tenants and 2,300 active benefits. The Acesso Multi parking payment system, with 1.5 million registered vehicles, has become the main parking payment method across the company’s malls.

Multiplan’s management sees limited impact from global economic uncertainty, as most of its operations and tenants are based in Brazil. The company’s focus on high-end properties has helped maintain strong performance in a challenging environment.

Ongoing investments in modernization and expansion have further supported this resilience. The recent decline in Brazil’s interest rates, now below 14%, could further benefit the sector by lowering financial costs and supporting asset values.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error

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