Clear progress in our operating metrics and returns
3.6% increase in total net revenue
6.1% increase in net revenue from apparel
Total gross margin of 50.3%, up 2.9 p.p.
48.1% Gross Margin from Merchandise, a 3.1 p.p. increase
Adjusted EBITDA1 (post -IFRS16) of R$76.9 million
Adjusted EBITDA margin1 (post -IFRS16) of 6.2%
3 p.p. increase in credit penetration in sales. C&A Pay already accounts
for 18% of sales
The compensation of all company leaders now includes ESG target
2022 Annual Integrated Report Published
1- Adjustments include: (i) other revenue (expenses); (ii) financial revenue from trade receivables; and (iii) recovery of tax credits
2
Key Messages
Efficient and austere cash management
Disciplined inventory management
Payment and receiving cycles maintained
Constant operational improvement
Gross Margin progression
WhatsApp sales as a key tool for relationship and assistance in the buying process
Focus on increased productivity of the existing assets
Continued growth of C&A pay with a sustainable credit portfolio
Customer Proximity
Analytical management of customer base
Focus on loyalty and generating recurrent sales
Brazilian indicators referring to research with class C from Locomotiva in 2022
3
Efficient and austere cash management
2.3% change in inventory levels compared to 1Q22, with no concern regarding quality
5% newer inventory compared to 1Q22
Push Pull contributing to bring down inventory and increase service levels
Entire supplier base has migrated to new payment terms and conditions maintained to current negotiations
Minimum payment in credit purchases maintained
4
Constant operational improvement
6.8 p.p. increase in omni share of sales, which reached 20.8%
Experience with the concept of assisted sales using the available technology tools to capture customer loyalty
Structural progress in apparel gross margin
Use of machine learning to constantly improve the dynamic pricing algorithm
Focus on costs and expenses to contribute to operational leverage
Focused team to increase sales per m²
C&A Pay as an increasingly relevant contributor to sales and expanding to adjacent services (insurance, ...)
5
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Disclaimer
C&A Modas SA published this content on 12 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 May 2023 13:36:03 UTC.
C&A Modas SA, formerly know as C&A Modas Ltda, is a Brazil-based fashion company, which manages a retail chain of shops and a Web portal. The Company sells a variety of products, such as apparel, accessories and footwear for men, women and children; cosmetics for both man and woman; electronic devices, including smartphones, notebooks, tablets and related accessories, among others. Its offering includes also products from different brands that customer can buy also through a mobile application.
C&A MODAS S.A. 
