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Suzano Faces Steep Profit Drop While Magazine Luiza Turns Profitable in Q1

Suzano (SUZB3), a Brazilian pulp and paper giant, saw Q1 profit plunge 95% to R$220 million ($43.14 million).

This sharp decline stemmed from currency fluctuations affecting debt and derivatives.

EBITDA totaled R$4.558 billion ($893.33 million), marking a 26% year-over-year drop.

Net revenue reached R$9.459 billion ($1.854 billion), showing a 16% decline. Lower net dollar prices affected this decrease.

General and administrative expenses rose by 29%, totaling R$503 million ($98.63 million) in Q1 2024.

Suzano’s net financial results for Q1 2024 were negative R$3.040 billion ($596.08 million), compared to a positive R$2.470 billion ($484.31 million) the previous year.

Suzano Faces Steep Profit Drop While Magazine Luiza Turns Profitable in Q1. (Photo Internet reproduction)
Suzano Faces Steep Profit Drop While Magazine Luiza Turns Profitable in Q1. (Photo Internet reproduction)

 

Net debt stood at R$59.626 billion ($11.692 billion), up 8% from last year. Financial leverage rose to 3.6 times EBITDA.

Magazine Luiza Returns to Profit

Magazine Luiza (MGLU3) earned R$27.9 million ($5.47 million) in Q1 2024, reversing last year’s R$391.2 million ($76.71 million) loss.

Total sales grew 3.1% to R$16.02 billion ($3.141 billion). Adjusted terms showed a switch from a loss to a R$29.8 million ($5.84 million) profit.

Physical store sales climbed 8%, reaching R$5 billion ($980.39 million). E-commerce (1P) sales of proprietary products grew 1% to R$11 billion ($2.157 billion).

Marketplace (3P) sales hit R$5 billion ($980.39 million), with a 6% rise. Vanessa Rossini, Magalu’s investor relations director, noted accelerating demand.

Gross revenue rose 1.9% to R$11.5 billion ($2.255 billion), while net revenue reached R$9.2 billion ($1.804 billion).

Marketplace services primarily drove gross margin expansion. Operational expenses increased by 3.1% to R$2.08 billion ($407.84 million).

Higher revenues offset this, leading to a 7.4% EBITDA margin and a 111.3% EBITDA increase to R$684.9 million ($134.3 million).

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