LOJAS RENNER S.A. 4Q22 RESULTS
Highlights of the quarter
February 16, 2023 - Lojas Renner S.A. (B3: LREN3; USOTC: LRENY), the largest fashion retailer in Brazil, announces its results for the fourth quarter of 2022 (4Q22). For the sake of comparability with the market and in line with the Financial Statements, as from 4Q21, the Company has now begun to report information on EBITDA on a post-IFRS 16 basis excluding Depreciation and Interest on leasing.
Youcom is the highlight in sales performance with +12.3% vs 4Q21 2023: YTD sales in line with expectations
ROIC of 12.8% (+6.1 p.p. vs 2021):
improved profitability and advances in the capital structure
Start of gradual migration of apparel to the new Cabreúva
DC
Growth of 6.1% in Digital GMV and
penetration of 1l.7%.
Marketplace reaches 9.6% of
Digital GMV and ~860 active sellers
Robust free cash flow
generation of R$ 309.7 MM,
2.3x greater than 4Q21
D+2 delivery: BR +11p.p. (48%) and Rio de Janeiro e São Paulo +14p.p.
(75%); Reduction of 1.4p.p. in
freight expenses over online sales
vs 2021
Total EBITDA (post-IFRS16) of R$ 918.6 MM, +18% vs 4Q21 and Net Income of R$ 481.8 MM, +16% vs 4Q21
Payout of 50% and distribution of R$ 648 MM in interest on capital
Acceleration in the production of
content with more than 800
influencer activations and traffic originating from these actions 6.4x greater.
CAC/Sales decrease 2.1p.p.
Levels of markdowns at the | Enchantment: record of very |
lowest levels of recent years | satisfied customers: 93.7% |
Videoconferência de Results
February 17, 2023
11:00 a.m. (BRT) | 09:00 a.m.(US-EST)
The video conference will be held in Portuguese with a simultaneous translation to English. To access, click hereor use the QR Code below:
Legal Notice
The statements contained in this document relate to the prospects for the business, estimates for operating and financial results. and those related to growth prospects of Lojas Renner S.A. are merely projections and, as such, are based exclusively on the expectations of the Company's management with respect to the future of the business. Such forward-looking statements depend substantially on changes in market conditions, the performance of the Brazilian economy, the sector and the international markets and are therefore subject to change without prior notice.
All variations and totals as well as roundings presented herein are calculated on the basis of numbers in thousands of Reais.
.
Results 4Q22 | 2 |
Consolidated Information
(R$ MM) | 4Q22 | 4Q21 | Var. | 2022 | 2021 | Var. |
Net Revenue from Retailing¹ | 3,554.9 | 3,560.5 | -0.2% | 11,575.8 | 9,555.4 | 21.1% |
Same Store Sales | -2.5% | 18.9% | -. | 18.5% | 40.1% | - |
Digital GMV | 551.6 | 520.1 | 6.1% | 2,046.4 | 1,644.4 | 24.5% |
Penetration of Digital Sales | 11.7% | 11.0% | 0.7p.p. | 13.5% | 13.1% | 0.4p.p. |
(R$ MM) | 4Q22 | 4Q21 | Var. | 2022 | 2021 | Var. |
Gross Profit from Retailing | 1,981.6 | 1,959.8 | 1.1% | 6,399.5 | 5,178.8 | 23.6% |
Gross Margin from Retailing | 55.7% | 55.0% | 0.7p.p. | 55.3% | 54.2% | 1.1p.p. |
Operational Expenses (SG&A)² | (1,131.8) | (1,076.3) | 5.2% | (4,125.3) | (3,529.8) | 16.9% |
% SG&A / Net Revenue from Retailing | 31.8% | 30.2% | 1.6p.p. | 35.6% | 36.9% | -1.3p.p. |
(R$ MM) | 4Q22 | 4Q21 | Var. | 2022 | 2021 | Var. |
EBITDA from the Adjusted Retailing | 953.3 | 724.0 | 31.7% | 2,381.5 | 1,474.5 | 61.5% |
Operation³ | ||||||
EBITDA Margin from the Adjusted Retailing | 26.8% | 20.3% | 6.5p.p. | 20.6% | 15.4% | 5.2p.p. |
Operation³ | ||||||
Financial Services Result | (34.6) | 51.6 | NA | 81.5 | 247.6 | -67.1% |
Total Adjusted EBITDA (Post IFRS 16)³ | 918.6 | 775.6 | 18.4% | 2,463.0 | 1,722.1 | 43.0% |
Total Adjusted EBITDA Margin (Post IFRS 16)³ | 25.8% | 21.8% | 4.0p.p. | 21.3% | 18.0% | 3.3p.p. |
(R$ MM) | 4Q22 | 4Q21 | Var. | 2022 | 2021 | Var. |
Net Profit | 481.8 | 415.8 | 15.9% | 1,291.7 | 633.1 | 104.0% |
Net Margin | 13.6% | 11.7% | 1.9p.p. | 11.2% | 6.6% | 4.6p.p. |
Earnings per share | 0.49 | 0.42 | 15.6% | 1.30 | 0.64 | 103.5% |
ROICLTM | 12.8% | 6.7% | 6.1p.p. | 12.8% | 6.7% | 6.1p.p. |
- The Retailing Operation includes revenues from merchandise sales as well as revenues net of services and costs related to retailing ² Operating Expenses (SG&A) do not include Depreciation and Amortization expenses.
³ Total Adjusted EBITDA (post-IFRS 16), without depreciation and financial expenses relating to leasing.
Results 4Q22 | 3 |
FINANCIAL PERFORMANCE
Net Revenue from the Retailing
• The fourth quarter 2022 was characterized by certain |
atypical events which had an impact on retail sales |
performance. Such events range from temperatures |
lower than usual early on in the quarter to reduced |
footfall due to the general elections and the FIFA World |
Cup Championship. In addition, a more difficult |
macroeconomic scenario with inflationary pressures |
and greater household debt has affected purchasing |
power and consumer habits. |
CAGR 4Q19 - 4Q22 = 7.4% | -0.2% | |
3,560.5 | 3,554.9 | |
2,873.1 | 2,919.6 |
• Despite this conjuncture, December showed some |
evolution during the course of the month, the Christmas |
and post-Christmas periods being line with Company |
forecasts. A combination of these factors resulted in a |
4Q22 similar to the same quarter in 2021 and if |
compared with 4Q19, there was a growth in net revenue |
of 23.2%. |
6.2%
18.9%
-0.8%-2.5%
• Important to mention that the comparative base of 4Q21 |
was a high one (+22.0% 4Q21 vs 4Q20), a period in which |
the Company turned in a strong improvement relative to |
the market, thus in 4Q22 leading to a performance |
relatively in line with the IBGE's Monthly Retailing Survey |
for Apparel. |
4Q19 | 4Q20 | 4Q21 | 4Q22 |
Net Revenue (R$ MM)
SSS - Same Store Sales (%)
BREAKDOWN BY
BUSINESS
(R$ MM) | 4Q22 | 4Q21 | Var. | 2022 | 2021 | Var. | |
Consolidated | 3,554.9 | 3,560.5 | -0.2% | 11,575.8 | 9,555.4 | 21.1% | |
Renner | 3,240.8 | 3,212.0 | 0.9% | 10,602.9 | 8,613.9 | 23.1% | |
Camicado | 170.9 | 221.1 | -22.7% | 567.1 | 650.4 | -12.8% | |
Youcom | 143.2 | 127.4 | 12.4% | 405.8 | 291.1 | 39.4% |
- Camicado continued to present interesting developments, both in the marketplace with the inclusion of new sellers and assortment as well as new channels with a positive performance for sales via WhatsApp. Notwithstanding, the Home & Décor segment continued to confront a challenging scenario, a situation intensified by the effects of the general elections, the World Cup and purchasing power restrictions, already mentioned. In this context Camicado's sales performance was lower than for the same quarter in the preceding year.
- Conversely, Youcom once again reported a good performance in sales, and considerably above the segment as a whole. Particularly important was the greater productivity in pieces and increased customer adherence to instore mobile sales, in addition to continuous advances in the digital journey, driven mainly by the activations of influencers in Social Commerce.
DIGITAL SALES
- Performance of sales originating in the digital channels reported growth versus the same quarter of 2021 with an increase in penetration. The marketplace performance were the highlight, representing 9.6% of the Digital GMV.
CAGR 4Q19 - 4Q22 = 50.4% | +6.1% | |
520.1 | 551.6 | |
373.5 | ||
9.7% | 11.0% | 11.7% |
162.0 |
4.3%
4Q19 | 4Q20 | 4Q21 | 4Q22 |
Digital GMV (R$ MM) | Penetration (%) | |
Notes
The Retailing Operation includes net revenue from merchandise sales as well as net revenues from retail-related services. Sales revenue from Ashua and services revenue from Repassa are consolidated in Renner.
Results 4Q22 | 5 |
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Lojas Renner SA published this content on 16 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 February 2023 21:43:03 UTC.
