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MarketScreener Homepage  >  Equities  >  Bolsa de Valores de Sao Paulo  >  B2W Companhia Digital    BTOW3   BRBTOWACNOR8

B2W COMPANHIA DIGITAL

(BTOW3)
  Report
End-of-day quote. End-of-day quote Bolsa de Valores de Sao Paulo - 01/22
89.31 BRL   -0.53%
01/18B2W COMPANHIA DIGITAL : Notice to Shareholders - 2021 shareholders meeting date
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2020MATERIAL FACT : Ame - Acquisition of Parati
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2020B2W COMPANHIA DIGITAL : 3Q20 Presentation
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SummaryMost relevantAll NewsOther languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

B2W Companhia Digital : announces 3Q20 Results

10/29/2020 | 05:50pm EST

B2W DIGITAL ANNOUNCES GMV GROWTH OF 56.2% AND

CASH GENERATION OF R$ 160.7 MM IN 3Q20

The result demonstrates the strength of the hybrid business model,

with accelerated growth on the 1P and 3P platforms.

Rio de Janeiro, October 29, 2020: B2W Digital (B3: BTOW3), the largest and most beloved digital Company in Latin America, today announces its results for the third quarter of 2020.

KEY INDICATORS

3Q20

3Q19

Delta

9M20

9M19

Delta

Total GMV (R$ MM)

7,264

4,652

+56.2%

18,537

12,130

+52.8%

Marketplace (R$ MM)

4,396

2,842

+54.7%

11,231

7,322

+53.4%

Marketplace (% of Total GMV)

60.5%

61.1%

-0.6 p.p.

60.6%

60.4%

+0.2 p.p.

Assortment (Items/MM)

56.4

19.8

+36.6

56.4

19.8

+36.6

# Sellers (New /Thou)

10.1

7.7

+2.4

33.0

16.8

+16.2

# Sellers (Base/Thou)

79.9

38.7

+41.2

79.9

38.7

+41.2

Mobile (% of Traffic)

82.5%

77.6%

+4.9 p.p.

81.8%

75.0%

+6.8 p.p.

HYBRID DIGITAL PLATFORM

1P (Direct Sales):

  • Growth of 59% in 3Q20 and 52% in 9M20.
  • Assortment of 336 thousand items (+12% vs. 3Q19) with positive contribution margin.
  • Accelerated growth in Toys, Small Appliances, Books, and Housewares.

3P (Marketplace):

  • Growth of 55% in 3Q20 and 53% in 9M20.
  • Assortment of 56.1 MM items (+270% vs. 3Q19), driven by long tail.
  • Accelerated growth in Sports & Leisure, Games, Grocery, and Furniture.

Digital Solutions (End to End):

  • B2W Entregas: 21.6 MM 3P deliveries in 9M20, an increase of 53% vs. 9M19.
  • SkyHUB: 31 thousand active Sellers, generating GMV of R$ 8.1Bn in 9M20, with R$ 1.5 Bn off-platform.
  • B2WADS: Growth of 365% in revenue in 3Q20 vs. 3Q19 and 128% in 9M20 vs. 9M19.

Financial Services:

  • Credit Seller: R$ 745 MM of pre-approved limit for B2W Marketplace Sellers.
  • R$ 7.3 Bn in Discounting of Receivables to Sellers in 9M20 (+62% vs. 9M19).
  • Branded credit card: R$ 2.7 Bn in transactions in 9M20.

Ame Digital:

  • TPV in the last 30 days reached R$ 1.1 billion, +225% vs. the same period of 2019.
  • 12.5 MM downloads in September/20, an increase of 168% vs. September/19.
  • Launch of Ame credit card issued by Banco do Brasil.

1

MESSAGE FROM MANAGEMENT

In 2020, we started the 3 year strategic plan (2020-2022), which aims to continue accelerating growth, gain market share, and continued cash generation. Since the beginning of the year, we have faced a challenging scenario due to the COVID-19 pandemic, which has brought enormous learning and motivated us to be even more agile, seeking innovative and creative solutions to be increasingly relevant in the daily lives of consumers and to generate value for our Customers and society as a whole.

This scenario also brought important changes in the consumer behavior, accelerating the adoption of digital solutions and the growth of eCommerce. Thus, in the 9M20 we posted 53% growth in Total GMV (vs. 46% growth of the market, source: Ebit/Nielsen).

This growth is the result of the combination of the acceleration of online sales with the implementation of a series of initiatives that allowed us to better serve the customer, especially at a time when convenience and security is most needed to meet consumption needs.

During the 9M20, we acquired Supermercado Now and integrated in Americanas, in record time, allowing us to launch the grocery category, which has already become the largest in terms of units sold. In the same period, we accelerated the O2O, with several integrated solutions in all Americanas stores and thousands of other merchants, generating GMV of R$ 2.6 billion (growth of 101% vs. 9M19). We also created new business models, such as the Local Marketplace, which, by connecting the physical store of several retailers, allows for delivery within 3 hours to the customer's desired address, and Americanas ao Vivo, bringing the Live Commerce model to Brazil.

During this period, we reinforced our commitment to offer the best shopping experience on the Brazilian internet, having the leading NPS in the sector (source: Reclame Aqui) and reaching even faster delivery times (33% of deliveries same day in 3Q20). With the opening of the 3 new Fulfillment Centers in October/20, we expanded our presence in the North and Northeast regions, allowing for the expansion of same day delivery coverage to more than 1,000 cities.

After the first 9 months of the year, we are approaching the main eCommerce sales period, and we are focused on making it the biggest Black Friday on the Brazilian internet once again. With this, we hope to successfully conclude a year that proved challenging, but full of important opportunities, which allowed us to present results far above those initially projected.

Accordingly, we concluded the R$ 4 billion private capital increase that will allow for the execution of our aggressive growth plan, including organic expansion, partnerships, and possible strategic acquisitions. This move does not change our commitment to continue generating cash, but it will allow us to have an even faster execution speed to continue our eCommerce revolution in Brazil.

In view of the countless opportunities that are presented, we are extremely motivated to anticipate our 3 year strategic plan (2020 - 2022), and in 2021, commence a new journey of exponential growth, with the expansion and monetization of our digital platform.

In this new journey, we will develop and expand our reach, entering scale and speed in new categories, generating growth, profitability and network effects in our eCommerce platform and the Americanas Universe.

We remain firm in our purpose of CONNECTING PEOPLE, BUSINESS, PRODUCTS, AND SERVICES and in fulfilling our important social role in the country, especially in this moment of uncertainty.

We thank our team for their engagement and enthusiasm to better serve the Customer. We also thank our suppliers for the partnership, the Marketplace Sellers for choosing our platform, the shareholders for their trust and, above all, the Customers for their preference.

Marcio Cruz

CEO, B2W Digital

2

3Q20 HIGHLIGHTS

Capital Raise: R$ 4.0 Bn

B2W Digital completed the capital increase of R$ 4.0 Bn, which will allow for the execution of our aggressive growth plan, including organic expansion, strategic partnerships and possible strategic acquisitions.

Americanas Mercado: Growth of 8x

Americanas Mercado presented an 8x increase in sales for 3Q20 (vs. 3Q19) and accelerated vs. 2Q20. The category consolidated itself as B2W's largest in terms of items sold and continues to expand rapidly, available in 43 cities, in the states of SP, RJ, ES, RS, BA, and PE.

Units Sold: Growth of 92%

B2W Digital announces growth of 92% in units sold in 3Q20, totaling more than 27 MM.

Active Customers: 20.8 MM

B2W Digital reached 20.8 MM active customers in 3Q20, driven by the addition of 5.9 MM new customers in the last 12 months.

Sellers Connected: +10.1 thousand

B2W Marketplace connected more than 10.1 thousand Sellers in 3Q20, totaling a base of 79.9 thousand Sellers in September/20 (vs. 46.8 thousand in December/19).

Assortment: 56.4 MM

B2W Digital totaled 56.4 MM offers exiting 3Q20, providing an increasingly complete assortment to customers, with a differentiated service level and fast delivery. The total number of available offers increased by 184.6% vs. 3Q19, driven by Marketplace Sellers.

Launch of Americanas Mais

Americanas Mais - fast delivery service with unlimited free shipping - offers customers a series of benefits in physical stores, the Americanas website and app, in addition to partnerships with platforms for offering digital entertainment, including Deezer, an audio streaming platform, and Ubook, a digital content platform.

O2O (Online to Offline): R$ 1.1 billion in GMV

O2O initiatives totaled R$ 1.1 billion in GMV in 3Q20, an increase of 96% vs. 3Q19. In the quarter, we registered 3.2 MM orders through these initiatives.

300 Free Courses at the Marketplace University

The Marketplace University trained more than 3.9 thousand Sellers in 3Q20. Currently, the B2W Marketplace University offers more than 300 free courses to train merchants on the platform. The University also started the "Accelerate on Black Friday" campaign, to train and prepare Sellers for the event.

Americanas ao Vivo: 200 MM views on social networks

Americanas ao Vivo, the Live Commerce platform of B2W, held more than 30 Lives in 3Q20. The Lives were attended by 20 influencers and brought a new audience to Americanas.

Same Day Delivery: 33%

LET'S delivered 33% of orders on the same day in 3Q20. Throughout 3Q20, same-day deliveries made by the LET'S platform (1P and 3P operations, including the Local Marketplace), totaled 33% of deliveries.

3 new Fulfillment Centers (FCs)

LET'S opened 3 new FCs at the end of 3Q20 in the states of Bahia, Ceará and Pará, with the objective of reducing the distance to the end consumer, increasing the number of cities eligible for deliveries within 24 hours.

Launch of the Ame Credit Card

In October, the Ame credit card issued by Banco do Brasil was launched. The product has unique benefits, can be exempt from annual fees and includes automatic approval. The credit card is digital-first and can be issued, within 9 minutes, through the Ame app or at Americanas stores.

3

The financial information serving as the basis for the comments below refer to 3Q20, and are in compliance with international financial reporting standards (IFRS), the standards issued by the Securities and Exchange Commission of Brazil (CVM), as well as the listing regulations of the Novo Mercado and in Brazilian reais (R$). Definitions for adjusted financial metrics can be found in Annex III and Annex V.

  • Total GMV: In 3Q20, Total GMV of R$ 7,264.1 million, an increase of 56.2% compared to the R$ 4,651.5 million registered in 3Q19. For the 9M20, GMV increased 52.8%, from R$ 12,130.0 million in 9M19 to R$ 18,536.8 million.
  • Gross Revenue: In 3Q20, gross revenue totaled R$ 3,308.7 million, an increase of 57.6% compared with the R$ 2,098.8 million registered in 3Q19. For the 9M20, gross revenue of R$ 8,434.4 million represented an increase of 52.0% compared with the gross revenue of R$ 5,550.7 million in 9M19.
  • Net Revenue: In 3Q20, net revenue totaled R$ 2,664.0 million, an increase of 58.5% compared with the R$ 1,681.2 million registered in 3Q19. For the 9M20, net revenue increased 53.0% from R$ 4,441.6 million in 9M19 to R$ 6,793.9 million.
  • Adjusted Gross Profit: In 3Q20, adjusted gross profit totaled R$ 836.7 million, an increase of 51.7% vs. the R$ 551.7 million registered in 3Q19. The adjusted gross margin was 31.4% in 3Q20 vs. 32.8% in 3Q19. For the 9M20, adjusted gross profit was R$ 2,124.6 million, representing an increase of 50.2% in relation to the R$ 1,414.5 million in 9M19, with gross margin going from 31.8% in 9M19 to 31.3% in 9M20.
  • Adjusted Selling, General and Administrative (SG&A) Expenses: In 3Q20, adjusted expenses totaled R$ 584.4 million vs. the R$ 399.4 million registered in 3Q19. The SG&A as a percentage of GMV decreased by 0.6 p.p., to 8.0% in 3Q20 vs. 8.6% in 3Q19. For the 9M20, expenses of R$ 1,560.1 million compares to R$ 1,068.8 million in 9M19, which represents a reduction of 0.4 p.p. as a percentage of GMV, from 8.8% to 8.4%.
  • Adjusted EBITDA: In 3Q20, Adjusted EBITDA reached R$ 252.3 million, an increase of 65.7% compared with the R$ 152.3 million registered in 3Q19. Adjusted EBITDA margin varied from 9.1% in 3Q19 to 9.5% in 3Q20, an increase of 0.4 p.p. For the 9M20, Adjusted EBITDA was R$ 564.6 million, representing an increase of 63.3% in relation to the R$ 345.7 million in 9M19, with EBITDA margin from 7.8% in 9M19 to 8.3% in 9M20, an increase of 0.5 p.p..
    In 3Q20, Adjusted EBITDA excludes the non-recurring effect of expenses related to the ICMS unconstitutionality action in the PIS/COFINS calculation base in the amount of R$ 10.6 million.
  • Other operating income (expenses): In 3Q20, the other operating income (expenses) reached R$ 22.6 million vs. the R$ 15.6 million registered in 3Q19. For the 9M20, the total of R$ 58.7 million compares with the R$ 39.9 million in 9M19.
    The growth in other operating income (expenses) line is related to non-recurring expenses due to COVID- 19, including employee testing, distribution of PPE, donations, among others.
  • Net Financial Result: In 3Q20, the net financial result was R$ -97.8 million vs. R$ -151.5 million in 3Q19, representing an improvement of 35.5%. For the 9M20, net financial result was R$ -322.1 million, representing an improvement of 30.9% in relation to the R$ -466.0 million in 9M19.
  • Net Result: In 3Q20, the net result was R$ -36.8 million vs. R$ -102.5 million in 3Q19, an improvement of 64.1%. The net margin showed an evolution of 4.7 p.p., from -6.1% in 3Q19 to -1.4% in 3Q20. For the 9M20, the net result was R$ -219.4 million, representing an improvement of 40.6% in relation to the R$ - 369.3 million in 9M19, with net margin going from -8.3% in 9M19 to -3.2% in 9M20, an evolution of 5.1 p.p..

In 3Q20, the net results excludes the non-recurring effect of expenses related to the ICMS unconstitutionality action in the PIS/COFINS calculation base in the amount of R$ 7.0 million.

4

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

B2W - Companhia Digital SA published this content on 29 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 October 2020 22:49:02 UTC


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Financials
Sales 2020 9 796 M 1 792 M 1 792 M
Net income 2020 -101 M -18,5 M -18,5 M
Net cash 2020 2 836 M 519 M 519 M
P/E ratio 2020 -492x
Yield 2020 -
Capitalization 50 174 M 9 190 M 9 177 M
EV / Sales 2020 4,83x
EV / Sales 2021 4,08x
Nbr of Employees 7 244
Free-Float 37,5%
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Mean consensus OUTPERFORM
Number of Analysts 16
Average target price 106,34 BRL
Last Close Price 89,31 BRL
Spread / Highest target 62,4%
Spread / Average Target 19,1%
Spread / Lowest Target -44,0%
EPS Revisions
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NameTitle
Márcio Cruz Meirelles President & Chief Executive Officer
Carlos Eduardo Rosalba Padilha Co-Chief Operating Officer
Carlos Henrique de Lucca Fortes Gatto Co-Chief Operating Officer
Jean Pierre Lessa e Santos Ferreira Co-Chief Operating Officer
José Mauro Rocha de Barros Co-Chief Operating Officer
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