GENERAL SHOPPING E OUTLETS DO BRASIL S.A. 2Q23
São Paulo, August14, 2023 - General Shopping e Outlets do Brasil [B3: GSHP3], one of the main Brazilian companies focused on the development and management of shopping centers in their different models, today announces its results for 2Q23. Except where otherwise stated, the following financial and operational information is presented on a consolidated basis and in thousands of Reais.
General Shopping e Outlets do Brasil S/A posted second quarter 2023 - 2Q23 - Gross Revenue of R$ 46.7 million, a decrease of 0.2% compared with revenue of R$ 46.8 million in the second quarter 2022 - 2Q22. In 1H23, Gross Revenue fell 1.4% in relation to 1H22, reaching R$ 90.0 million.
Consolidated NOI in 2Q23 recorded R$ 28.0 million, equivalent to a margin of 70.1% and a decrease of 1.9% in relation to the R$ 28.6 million the Company reported for 2Q22. 1H23, Consolidated NOI was R$ 53.8 million, corresponding to a margin of 69.7% and a year-on-year decrease of 5.9%.
The Company registered a Gross Profit in 2Q23 of R$ 27.8 million, equivalent to a margin of 69.6% and 0.9% lower in relation to the R$ 28.1 million published in the results for 2Q22. In 1H23, Gross Profit amounted to R$ 53.4 million, this corresponding to a margin of 69.2% and 5.2% down on 1H22.
Adjusted EBITDA in 2Q23 reached R$ 17.5 million, corresponding to a margin of 43.8% and a 6.7% decrease in relation to the R$ 18.8 million posted for 2Q22. In 1H23, Adjusted EBITDA was R$ 31.9 million, a margin of 41.3% and declining 10.4% compared to the same period in 2022.
Consolidated Financial Highlights | ||||||
R$ thousand | 2Q22 | 2Q23 | Chg. | 1H22 | 1H23 | Chg. |
Gross Revenue | 46,845 | 46,743 | -0.2% | 91,248 | 89,957 | -1.4% |
Rent (Shopping Malls) | 18,742 | 18,136 | -3.2% | 37,374 | 35,401 | -5.3% |
Services | 28,103 | 28,607 | 1.8% | 53,874 | 54,556 | 1.3% |
NOI - Consolidated | 28,551 | 28,003 | -1.9% | 57,147 | 53,794 | -5.9% |
Adjusted EBITDA | 18,750 | 17,490 | -6.7% | 35,634 | 31,916 | -10.4% |
Adjusted Net Result | (173,269) | 64,232 | - | (5,557) | 65,545 | - |
Adjusted FFO | (172,315) | 64,784 | - | (3,784) | 66,578 | - |
NOI Margin | 72.8% | 70.1% | -2.7 p.p. | 74.1% | 69.7% | -4.4 p.p. |
Adjusted EBITDA Margin | 47.8% | 43.8% | -4.0 p.p. | 46.2% | 41.3% | -4.9 p.p. |
Adjusted Net Result Margin | -442.1% | 160.7% | - | -7.2% | 84.9% | - |
Adjusted FFO Margin | -439.7% | 162.1% | - | -4.9% | 86.3% | - |
Gross Revenue per m² | 543.06 | 544.47 | 0.3% | 1,015.25 | 1,047.83 | 3.2% |
NOI per m² | 330.98 | 326.18 | -1.4% | 635.84 | 626.60 | -1.5% |
Adjusted EBITDA per m² | 217.36 | 203.73 | -6.3% | 396.48 | 371.76 | -6.2% |
Adjusted Net Result per m² | (2,008.64) | 748.18 | - | (61.83) | 763.47 | - |
Adjusted FFO per m² | (1,997.58) | 754.61 | - | (42.10) | 775.51 | - |
Own GLA - Average in the Period (m 2) | 86,262 | 85,851 | -0.5% | 89,877 | 85,851 | -4.5% |
Own GLA - End of the Period (m2) | 85,358 | 85,851 | 0.6% | 85,358 | 85,851 | 0.6% |
MANAGEMENT COMMENTS
The Company's Management is pleased to present the operating and financial performance for the second quarter 2023 (2Q23), shown in detail in the respective reports and statements.
Gross Revenue in 2Q23 posted a small decrease of 0.2% to total R$ 46.7 million, weighted by the reduction in Revenues from Rentals at 3.2% as opposed to an increase in Services' Revenues of 1.8%, both compared to 2Q22. In the first half of 2023, Gross Revenue was R$ 90.0 million, a year-on-year decrease of 1.4%.
In the case of the Same Areas indicator, the Same Area Rentals item posted an increase of 2.4% in 2Q23 compared with the same period in 2022 while Same Area Sales were 8.3% higher than 2Q22.
Occupancy rates also reported an improvement in the quarter reaching 94.2% in 2Q23 compared with 94.0% in 2Q22.
With respect to Costs of Rentals and Services, this item was 9.3% greater than 2Q22 at R$ 12.2 million, impacted by the increasing costs of third-party services. As for the first half of 2023 as a whole, these same costs registered a year-on-year increase of 14.5%, reaching R$ 23.8 million.
NOI totaled R$ 28.0 million in 2Q23, a decrease of 1.9% relative to 2Q22 and equivalent to a margin of 70.1%. First half 2023 results reported a NOI of R$ 53.8 million and corresponding to a margin for NOI of 69.7%, 5.9% less than for 1H22.
An analysis of General and Administrative Expenses reveals an increase of 31.0% in 2Q23 when compared to the same period in 2022 and a rise of 23.9% in the first half of 2023 relative to 1H22.
First half 2023 Adjusted EBITDA reached R$ 31.9 million, a reduction of 10.4% in relation to the first half of 2022, equivalent to an Adjusted EBITDA margin of 41.3%. In 2Q23, Adjusted EBITDA was R$ 17.5 million and a reduction of 6.7% in relation to 2Q22 and corresponding to an Adjusted EBITDA margin of 43.8%.
In the second quarter 2023, the Net Financial Result account was largely impacted by the US Dollar x Real exchange variation, recording a negative R$ 190.0 million in 2Q22 compared with a positive R$ 50.4 million in 2Q23.
We would like to take this opportunity to thank our employees, tenants, customers and visitors for their invaluable contributions.
Marcio Snioka,
Investor Relations Officer
Earnings Result 2Q23 | 2 |
GROSS REVENUE
Total gross revenue in the quarter was R$ 46.7 million, representing a decrease of 0.2% compared with 2Q22. In 1H23, this item amounterd to R$ 90.0 million, a 1.4% decline in relation to 1H22.
Gross revenue from rents in 2Q23 totaled R$ 18.1 million, and accounting for 38.8% of total gross revenue, a decrease of 3.2% compared with 2Q22. In 1H23, this same revenue was R$ 35.4 million, 5.3% lower, year-on-year. This decrease is largely a reflection of the sale of a 49.0% stake in Outlet Premium Grande São Paulo.
Gross revenue from services in 2Q23 amounted to R$ 28.6 million, reflecting an increase of 1.8% in relation to 2Q22, and R$ 54.6 million in 1H23, 1.3% higher compared to 1H22. The main driver behind this improvement was an increase in mall vehicle flows and consumption of services supplied by the Company.
TOTAL GROSS REVENUE
(R$ million)
91.2 -1.4% 90.0
53.8 | 54.6 | |||||
46.8 | 46.7 | 1.3% | ||||
-0.2% | ||||||
28.1 | 1.8% | 28.6 | -5.3% | |||
-3.2% | 37.4 | 35.4 | ||||
18.7 | 18.1 | |||||
2Q22 | 2Q23 | 1H22 | 1H23 | |||
Rent | Services |
RENTAL REVENUE
The Company's revenues from rentals, which totaled R$ 18.1 million in 2Q23, are divided between minimum rentals, percentage of rentals on sales, key money, merchandising and straight-lining revenue.
Earnings Result 2Q23 | 3 |
Rental Revenue Breakdown | ||||||
R$ million | 2Q22 | 2Q23 | Chg. | 1H22 | 1H23 | Chg. |
Minimum Rent | 13.9 | 13.9 | -0.1% | 29.2 | 28.2 | -3.6% |
Percentage on Sales | 1.3 | 1.5 | 15.9% | 2.3 | 2.6 | 15.0% |
Key Money | 0.5 | 0.2 | -58.9% | 0.9 | 0.4 | -49.0% |
Advertising | 1.7 | 1.8 | 3.1% | 3.3 | 3.4 | 1.5% |
Straight-lining Revenue | 1.3 | 0.7 | -43.6% | 1.7 | 0.8 | -52.4% |
Total | 18.7 | 18.1 | -3.2% | 37.4 | 35.4 | -5.3% |
Revenues from minimum rentals in 2Q23 amounted to R$ 13.9 million and unchanged from 2Q22. Comparing 1H23 X 1H22, there was a decrease of R$ 1.0 million, or 3.6%, mainly due to the factors already cited above.
Rentals as a percentage of sales rose R$ 0.2 million when comparing the two quarters for successive years. Considering 1H23 relative to 1H22, the increase was 15.0%.
Temporary rentals (Advertising) in 2Q23 were R$ 1.8 million, an increase of 3.1% compared with 2Q22, and R$ 3.4 million in 1H23, a rise of 1.5% compared with 1H22.
Minimum rentals represented 76.6% of total revenue from rentals in 2Q23, while in 2Q22 this percentage was 74.2%. In 1H23, minimum rentals corresponded to 79.7% of total revenue when compared with 78.2% in 1H22.
Rental Revenue Breakdown - 2Q23
9.9% 3.9%
1.2%
8.4%
76.6% | |
Minimum Rent | Percentage on Sales |
Key Money | Advertising |
Straight-lining Revenue |
Earnings Result 2Q23 | 4 |
Rental Revenue Breakdown - 1H23
9.5% 2.2%
1.3%
7.3%
79.7% | |
Minimum Rent | Percentage on Sales |
Key Money | Advertising |
Straight-lining Revenue |
SERVICES REVENUE
In 2Q23, services revenue totaled R$ 28.6 million, representing a growth of 1.8% compared to the same period in 2023. In 1H23, services revenues were R$ 54.6 million, a growth of 1.3% compared with 1H22.
Services Revenue Breakdown | ||||||
R$ million | 2Q22 | 2Q23 | Chg. | 1H22 | 1H23 | Chg. |
Parking | 12.8 | 15.2 | 19.0% | 23.2 | 28.8 | 23.9% |
Energy | 8.9 | 5.5 | -38.7% | 17.5 | 10.3 | -41.1% |
Water | 1.9 | 2.1 | 13.4% | 3.8 | 4.4 | 13.6% |
Management | 4.5 | 5.8 | 27.7% | 9.3 | 11.1 | 19.3% |
Total | 28.1 | 28.6 | 1.8% | 53.8 | 54.6 | 1.3% |
Parking lot revenues in 2Q23 were R$ 15.2 million, an increase of R$ 2.4 million relative to 2Q22. In 1H23, these same revenues were R$ 28.8 million, and 23.9% higher compared to 1H22. This result reflects mainly the recovery in vehicle flows through our commercial developments.
Revenues from the management of energy supplies were R$ 5.5 million in 2Q23, a decrease of R$ 3.4 million. In 1H23, we reported R$ 10.3 million, a decrease of 41.1% compared with 1H22, mainly a function of the variation in spot purchasing costs that impacted our margins, as well as factors already alluded to above.
Revenues from water supply management amounted to R$ 2.1 million in 2Q23, R$ 0.2 million greater than 2Q22. In 1H23, revenues were R$ 4.4 million, an increase of 13.6% compared with 1H22.
Earnings Result 2Q23 | 5 |
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General Shopping e Outlets Brasil SA published this content on 14 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 August 2023 09:41:07 UTC.
