Business

Brazil's B2W announces cash generation of BRL 718 million and net profit of BRL 16 million in Q4 2020

The company also informed that it had an acceleration of 83% in sales in January and 90% in February of this year

Brazilian retailer Lojas Americanas's website
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  • At the end of 2020, B2W had an active customer base of 21.4 million;
  • The result came a few days after Mercado Libre discloses GMV of $ 6.6 billion dollars for the fourth quarter.

Brazil’s retailer B2W, controlled by Lojas Americanas, reported on Thursday that its total sales (GMV) totaled BRL 9.18 billion from October to December, a 38.2% growth against a year earlier, boosting net revenue by 50%, to BRL 3.33 billion.

B2W, which recently announced a plan for a possible business combination with Americanas, had a net profit of BRL 15.6 million in the fourth quarter, compared to a loss of 22.3 million a year earlier. It also announced cash generation of BRL 718 million.

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The company also informed that it had an acceleration of 83% in sales in January and 90% in February of this year, boosted by the strong performance of the marketplace.

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In the same vein, the operating result measured by adjusted earnings before taxes, interest, depreciation, and amortization (EBITDA) totaled BRL 385.7 million from October to December, an increase of 51.7% year on year, in line with the forecast average of analysts consulted by Refinitiv, of 386.2 million.

The result came a few days after Mercado Libre discloses GMV of $ 6.6 billion dollars for the fourth quarter, an annual increase of 69.6% in dollars and 109.7% in constant currency.

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At the end of 2020, B2W, which owns sites such as Americanas.com and Submarino, had an active customer base of 21.4 million, 5.4 million more than a year earlier, with several initiatives to expand the product shelf and create more recurrence, including with the purchase of Supermercado Now.

(Translated and co-written by LABS)

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