Call 1 q13_eng


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Call 1 q13_eng

  1. 1. 1Q13 Conference CallMay, 14th 2013
  2. 2. 2 Highlights of 1Q13 Operational Performance Financial Performance Expectations for 2013
  3. 3. 3Highlights of 1T13Consolidated gross revenue increased 7.0% in 1Q13 over 1Q12 Gross revenue growth: 7.0% over 1Q12 – R$2.1 billion Same store sales growth: 5.2% over 1Q12 (e-commerce stood out) High base of comparison (SSS growth of 15.9% in 1Q12) Inaugurated 2 conventional stores and closed 14 branches (13 Baú da Felicidade stores) located in overlapping geographic regionsConsolidated gross margin increased 0.4 p.p. in 1Q13 over 1Q12 Consolidated gross margin: 28.2% of net revenue Constant focus on improving gross margin in the Northeast region and maintaining margin in other regionsOperating expenses reduced 0.8 p.p. in 1Q13 over 1Q12 Focus on reducing costs and expenses whilst increasing store productivity End of extraordinary expenses related to the integration processSolid performance of Luizacred in 1Q13 Gross revenue expanded 9.8% to R$345.9 million Gross margin widened by 6.6 p.p. over 1Q12, reaching 90.6% EBITDA margin stood at 8.5% Net margin of 4.5%, reversing a loss of R$16.7 million in 1Q12 to an income of R$15.6 million in 1Q131234
  4. 4. 4 Highlights of 1Q13 Operational Performance Financial Performance Expectations for 2013
  5. 5. 56 5 4 7 511 81925774688181816116Operational Performance – Stores623 624 629 636 624106 106 106 106 1061 1 1 1 1Number of StoresSame Store Sales Growth731743731730 736Same Stores Sales Growth (Physical Stores)Same Stores Sales Growth (includes e-commerce)Total Retail GrowthAverage Age - StoresMore than 3 years 2 to 3 years1 to 2 yearsUp to 1 year+ 1 store# storesConventional Stores Virtual Stores Site25.0%15.9%12.6% 6.9%5.2%2.9%1Q12 1Q13 457 150107171Q12 2Q12 3Q12 4Q12 1Q13InvestmentsTechnology OthersRemodelingNew StoresR$ million43354552271Q12 2Q12 3Q12 4Q12 1Q13
  6. 6. 61,1411,3884753642373065940Operational Performance – LuizacredFinanced Mix Sales Luizacred’s Revenues1Q131Q121Q1319%1Q1234%% of total sales R$ million24%16%14%18%30% 36%32% 30%100%100%CDCLuiza Card Third Party Credit CardCash Sales/Down Payment9.8%2,0981,911Luiza Card – Outside Luiza StoresLuiza Card – Inside Luiza StoresCDCPersonal Loan
  7. 7. 72,656 2,512537 97914183Operational Performance – Portfolio’s compositionLuiza Card – Total Credit Card Base Portfolio1Q131Q12Personal LoansCDCR$ million# million4.3 4.24.0 3.9 3.81Q12 2Q12 3Q12 4Q12 1Q137.2%3,5743,334Credit Card
  8. 8. 84.7 4.3 4.0 3.3 4.512.711.610.48.28.717.415.914.411.513.1Luizacred PortfolioTotal overdueOverdue above 90 daysOverdue 15-90 days• Default indicators at the close of March2013 were 4.3 p.p. lower than in March2012• Overdue above 90 days (NPL 90)reduced 4.0 p.p. over March 2012 andincreased 0.5 p.p. over December 2012(seasonality)• Provisions for loan losses stood at 4.6%of total portfolio in 1Q13, up from 4.3%in 4Q12 – conservative approach• Coverage ratio was in line withDecember 2012 and above March2012, equivalent to 147%CommentsPortfolio OverdueCoverage Ratio (%)% of portfoliosep/12mar/12 jun/12 dec/12111% 117% 129% 153%mar/13147%
  9. 9. 9 Highlights of 1Q13 Operational Performance Financial Performance Expectations for 2013
  10. 10. 10Gross Revenue and Net RevenueGross Revenue - ConsolidatedNet Revenue - ConsolidatedCrescimento vs o mesmo trimestre do ano anterior Consolidated gross revenue growth: 7.0% over 1Q12o 5.0% growth in same-store sales (e-commerce stood out)o High base of comparison (SSS growth of 15.9% in 1Q12)CommentsR$ billionR$ billion2. 2Q12 3Q12 4Q12 2012 1Q131. 2Q12 3Q12 4Q12 2012 1Q13Gross Revenue - InternetR$ million248264269314 1.0953011Q12 2Q12 3Q12 4Q12 2012 1Q137.0%6.0%21.1%
  11. 11. 11Gross Profit0. 2Q12 3Q12 4Q12 2012 1Q13Growth over the same quarter of 201227,8% 28,9%Gross Margin (%) Gross margin of 28.2%, up 0.4 p.p. from 1Q12o Higher store margin in the Northeasto Preservation of margins in otherregionsComments28,0%Gross Profit – Consolidated29,1%R$ billion7.7%28,4% 28,2%
  12. 12. 12Operating Expenses and Others Expenses (Revenues)33390 4 7 43435594 5 8 446Operating Expenses Operating expenses reduced 0.8 p.p. in1Q13 over 1Q12o Focus on reducing costs and expenseswhilst increasing store productivity SG&A : virtually stable compared with 1Q12 Other Operating Expenses: reduction in non-recurring expensesComments% Net RevenueR$ million-20.0% -0.2%TotalOthersProv.G&ASales-26.1%-0.4% -20.1% -0.3% -25.2%0.5%TotalOthersProv.G&ASales-5.4% -5.3%1Q12Others Expenses (Revenues) OperatingR$ millionTotalOthersExtraord.ExpensesBooking ofDeferredRevenues8 13179 1 1 8TotalOthersExtraord.ExpensesBooking ofDeferredRevenues1Q131Q12 1Q13
  13. 13. 1363 0 0 6323 826 56EBITDA and Adjusted EBITDA23817481 259631Q12 2Q12 3Q12 4Q12 2012 1Q13• Increase of 2.2 p.p. over 1Q12• Main factors that influenced EBITDA: increasein gross margin, decrease in operationalexpenses and increase in equity in subsidiaries• The operating result reflects the beginning of agradual improvement in profitability followingthe integration of chains Lojas Maia and Baú daFelicidadeMargin EBITDA (%)Comments1.4%EBITDA4.4%Adjusted EBITDA1Q12 1Q13AjustedEBITDAExtraord.ExpensesExtraord.CostsEBITDA EBITDA1.4% 3.4% 3.6% 3.6%4.9%R$ millionR$ million4.0% 3.7% 3.6%AjustedEBITDAExtraord.ExpensesExtraord.Costs
  14. 14. 14Financial Expenses – ConsolidatedFinancial Expenses% Net Revenues• Financial Result:o Reduction of 0.3 p.p. over 1T12 Reduction in the CDI rate and anincrease in working capitalrequirementsCommentsFinancial ExpensesR$ million1Q131Q12-2.9% -2.6%49 45
  15. 15. 1540.7 33.511.4 8.310.340.7 21.92.4 Income and Adjusted Net Income0.8 0 0 0 0.8Adjusted Net Income1Q12 1Q13Net Income-2.4% 1.3% 1Q13: in line with our goal of graduallyimproving our results and profitability in2013 Magazine Luiza reversed a loss of R$40.7million in 1Q12Comments0.5%Net Margin (%)16AdjustedIncomeTaxesCreditsExtraord.TaxesExtraord.Ops. ResultsNet Income-2.4% -0.6%0.1%R$ millionR$ million2Q121Q12 3Q120.0%-0.1%4Q12 20120.0% 0.0%1Q13AdjustedIncomeTaxesCreditsExtraord.TaxesExtraord.Ops. ResultsNet Income
  16. 16. 16 Highlights of 1Q13 Operational Performance Financial Performance Expectations for 2013
  17. 17. 17Expectations for 2013Same-store sales are expected to record high single-digit growth The Company plans to open between 20 and 25 stores in 2013 Same-store sales are expected to record high single-digit growth and between 20% and 30% for e-commerce in 2013Preservation of consolidated gross margin The Company expects to reduce the difference in gross margin between stores in the Northeast and those in other regions Price Management System (Pricing) – designed to increase pricing intelligence by channel, region and product familyFocus on reducing costs and expenses whilst increasing store productivityCommitted to obtaining better productivity and profitability in the upcoming quarters123 Stricter control policies for 2013 More significant gains in the second half of 2013, a period when Magazine Luiza will be launching most of the initiatives4Ensure quality services and client satisfaction5
  18. 18. 18Investor statement made in this presentation referring to the Company’s business outlook. projections and financial and operating goalsrepresent beliefs. expectations about the future of the business. as well as assumptions of Magazine Luiza’s management and aresolely based on information currently available to the Company. Future considerations are not a guarantee of performance. Theseinvolve risks. uncertainties and assumptions since they refer to forward-looking events and. therefore depend on circumstances thatmay not occur. These forward-looking statements depend substantially on the approvals and other necessary procedures for theprojects. market conditions. and performance of the Brazilian economy. the sector and international markets and hence are subject tochange without prior notice. Thus. it is important to understand that such changes in conditions. as well as other operating factorsmay affect the Company’s future results and lead to outcomes that may be materially different from those expressed in such futureconsiderations. This presentation also includes accounting data and non-accounting data such as operating. pro forma financial dataand projections based on the Management’s expectations. Non-accounting data has not been reviewed by the Company’sindependent auditors.Legal Disclaimer
  19. 19. 1Q13 Conference CallMay, 14th 2013