Magalu (MGLU3) fails to pass consumer cost inflation, says Inter Research – Money Times

Luiza magazine (MGLU3) released Monday night (14) results for Fourth quarter of 2021.

I owned the company Adjusted net loss R$79 millionwhich is a reflection of the R$232.1 million profit reported in the same period in 2020.

at Procedures It collapsed 8.63% this Tuesday (15), quoted at 4.87 Brazilian Real. With backtracking, the paper recorded a file worst daily performance From Ibovespa (IBOV) Today.

Second report for the year Inter researchThe result was “disappointing and below consensus,” in line with other analyzes conducted by the market today.

It was expected that as a result of the stronger seasonal period, physical retail would perform well again, which it did not.

Analyst Breno Francis de Paula, who signs the Inter report, highlights that the increase in expenses was disproportionate to the level of sales recovery.

On the other hand, it is considered that Luisa magazine reported on the online channel good numbers “supported by the excellent result in 3P (the shop).” However, they don’t contribute much to restoring consolidated operating margins.

The specialist assesses that, as was already expected, the company failed to pass economic inflation of costs to the consumer.

“With all the changes that have occurred during 2021, we have put our pricing under review, as we revisit the model, including updated numbers and assumptions,” he says.

ESG

The report notes that Magalu is now included in the Corporate Sustainability Index (ISE) in b 3 in 2022.

The company has completed proper waste disposal in 26 distribution centers and has installed used electrical and electronic products collectors in 250 stores. The analysis says 51.8% of employees identify themselves as black or brown, and of those, 41.5% hold leadership positions.