Brazilian e-commerce company Americanas turned profitable in the second quarter, but its share price fell

Recently, Brazilian e-commerce company Americanas released its second quarter financial report.

Americanas is a well-known Brazilian e-commerce platform, which owns three major platforms: Americanas, Submarino and Shoptime. The company's net income in the reporting period was 225 million reais, turning losses into profits, which is better than the previous estimate, while the loss in the same period last year was 36 million reais.

According to the financial report, the company's gross merchandise volume (GMV) in the second quarter reached 12.6 billion reais, a year-on-year growth rate of 32.6%. Taking into account the increase in the number of stores, the average single-store sales increased by 17.6%. The adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) in the second quarter was 1.07 billion reais, a year-on-year increase of 44.9%.

In addition, Americanas' net revenue from sales and services increased by 46% to nearly 7 billion reais. It has 49 million active customers, ranking first among Brazilian e-commerce platforms. Its number of sellers and SKUs (70 million) are also the highest among Brazilian e-commerce platforms.

Although Americanas's development trend is good judging from the numbers, its stock price still fell 7.88% by the close of the day after it released its financial report.

Gustavo Cruz, a strategist at RB Investimentos , believes that the bottom line of Americanas' balance sheet benefited from a 309 million reais tax credit, a non-recurring effect, rather than profit generated by its operations itself. Without this tax credit, Americanas would have lost 85 million reais in the second quarter.

Affected by the epidemic, e-commerce growth in Latin America has led the world since last year. Although Americanas' GMV increased by 32.6%, it is still not outstanding compared with its competitors. Among the major e-commerce platforms in Brazil, it is only higher than Via. For example, Magazine Luiza's GMV increased by 60.5% in the second quarter.

In addition, Americanas' net income growth rate is also the lowest among its competitors, with its net income increasing by 46.1% in the second quarter, compared with Magazine's growth of 61.9%, Via's growth of 49.2%, and Mercado Livre's growth in Brazil reaching an astonishing 104%.

It seems that the Latin American market is still strong after experiencing explosive growth last year. At present, compared with other emerging markets, the Latin American market has broad prospects and is a region that sellers should consider more.

Brazilian e-commerce

Americanas

Latin American e-commerce