Brazilian Via Varejo reports first net profit since 2018

Company that owns Casas Bahia and Ponto Frio stores released its 2020 first-quarter results

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  • With good results, the company is considering a primary offering of shares;
  • The information, anticipated by the newspaper Valor Econômico the previous week.

On Wednesday, Via Varejo, the parent company of Casas Bahia and Ponto Frio stores, released its results for the first quarter of 2020. The company closed the first three months of this year with a net profit of BRL 13 million, versus a loss of BRL 50 million a year ago, and margins in the period. It is the company’s first profit since the second quarter of 2018.

READ ALSO: Brazilian e-commerce grew 81% in April to BRL 9.4 million in revenues

With good results, the company is considering a primary offering of shares. The information, anticipated by the newspaper Valor Econômico the previous week, caused the company’s shares to fall 6%. But the market assessment after the first-quarter results may change. This is what analysts at Credit Suisse point out, who, according to the website Seu Dinheiro, estimates that the company’s shares, which closed this Wednesday at BRL 9.14, have the potential to reach BRL 21, in a period of 12 months.

In an interview with Valor, the company’s president Roberto Fulcherberguer said that the company is having good results in April as well. “We closed April invoicing 90% of everything we invoiced in April last year […]. We achieved a 20-point gain in online market share in the second week of April, according to data from GfK. This shows that the changes we have already made to digital since 2019 have had an effect and will advance after the pandemic, ” he told the newspaper.