One of Brazil's largest retailers, Via Varejo triples loss and investigates suspected accounting fraud

Owner of chains such as Casas Bahia and Ponto Frio, the retailer has just reported its fifth consecutive negative quarter

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  • The only good news are the marketplace, whose GMV (Gross Merchandise Volume) rose 79% to BRL 463 million;
  • In a conference with analysts to comment on their results, the company explained that it is willing to recover its market share, accelerating sales in this time of year, with Black Friday and Christmas.

One day after informing the market that it opened an investigation into accounting irregularities caused by anonymous allegations, Via Varejo released on Wednesday (13) its balance sheet of the third quarter of 2019. What could get worse, as pointed out by Exame magazine, really stayed worse.

Owner of chains such as Casas Bahia and Ponto Frio, the retailer has just reported its fifth consecutive negative quarter. The company tripled its net operating loss in the last quarter compared to the same period last year, to BRL 244 million, a decreased 10.7% in revenues to BRL 5.69 billion, in addition to lower revenues and same-store sales and lower performance in the so-called “financial services” category, helping to reduce operating margin from 6.6% to 4.3%. The only good news are the marketplace, whose GMV (Gross Merchandise Volume) rose 79% to BRL 463 million.

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According to data from Refinitiv published by Exame magazine, analysts expected on average net loss of about $ 10 million and EBITDA of 249.6 million for the company.

Also on Wednesday (13), the company reported that preliminary results of the investigations did not confirm the reported irregularities. On Thursday afternoon (14), in a conference with analysts to comment on their results, the company explained that it is willing to recover its market share, accelerating sales in this time of year, with Black Friday and Christmas, but also seeking balance in offering discounts to try to regain profit margins. The information comes from the Reuters news agency, reproduced by several Brazilian publications.

Via Varejo is still undergoing an adaptation to the new direction of the Klein family, founder of Casas Bahia, which took over the company in mid-2019.