GRUPO CASAS BAHIA S.A. RESULTS
Q1'24GROUP
Casas Bahia Group presents an update on its
Transformation Plan and Q1'24 Results, with the best free
cash flow in the last 5 years
The Q1'24 results corroborate the ongoing Transformation Plan presented in August 2023 and confirm the high delivery capacity of the initiatives, which continue as planned and will be gradually captured throughout 2024 and 2025.
• Management system based on new margin and cash cycle metrics
• Enhanced inventory and below 80 days in Q1'24
• Capture in overhead reduction and optimization
• Closure of 57 brick and mortar stores and 5 DCs resized - with 2 stores in Q1'24
• Migration of 23 subcategories with negative margins from 1P to 3P only
• Change in Installment Plan financing model - in progress
• Net Monetization of tax assets of R$ 203 million in Q1'24
• Reprofiling of the debt: savings of R$ 4.3 billion until 2027
Q1'24 Results Highlights
- Free Cash Flow of (R$ 176) million in Q1'24, the best 1st quarter in the last 5 years
- Liquidity, including receivables, totaled R$ 2.9 billion in Q1'24
- Inventory reduction of R$2.1 billion (reduction of 32 days) in YoY and flat vs. Q4'23
- Reduction of 14.6% in personnel expenses vs. Q1'23
- Net tax monetization of R$ 214 million in Q1'24 vs. consumption in the last 4 years in the 1st quarter
- Gross margin of 30.0% in Q1'24, already at historical levels (vs. 27.6% in Q4'23 and 23.0% in Q3'23)
- EBITDA adjusted Margin of 6.1% (vs. 2.2% in Q4'23 and -1.0% in Q3'23)
- Improvement of EBT and Net Profit vs. Q1'23 in 9.2% and 12.2%, respectively
1
RESULTS
Q1'24GROUP
Status of the Transformation Plan
Execution of the transformation plan has advanced, initiatives have progressed, summing up R$ 1.5-1.6 Bi in opportunities.
Transformation Plan - stages:
July/23: focus on short-term cash generation and changes to the management model - Prioritization of margins vs. GMV
July/23 - March/24: focus on sustainable cost reduction and maintaining efficient operations - Stabilization
April/24 - December/24: select investments focused on strengthening the core and generating revenue - Selective bets
2025+: strategic review focused on expanding and improving the experience of the physical and online channels and investing in critical capabilities - acceleration and new momentum
Type | |||||
Levers explored | |||||
Efficiency in Services | |||||
Pricing and Promotion | |||||
Revenue | Sales Channels | ||||
Review of Mix and Assortment | |||||
Marketing Efficiency | |||||
Variable | |||||
Commercial Efficiency | |||||
Costs | |||||
Indirect Costs Renegotiation | |||||
Review of Headcount | |||||
Fixed Costs | Technology Costs | ||||
Store Capitalization | |||||
Optimization of Freight and | |||||
Distribution Centers | |||||
3P Assortment Migration | |||||
Capital Costs | Inventory Reduction | ||||
Impact on cash | Review of Payment Policy | ||||
Identified Impact | Evolution with non-exhaustive examples of initiatives implemented and mapped | |
Until Q1'24 | ||
Increased penetration of services and CDC (CDC penetration Q1'24+4 p.p. vs.Q1'23) | ||
R$450 M | Development of intelligent pricing system based on advanced analytics (new) | |
Creation of digital solution to increase efficiency of sellers in Stores and Marketplace (new) |
Expansion of advertisers basis of Casas Bahia ADS1 in 7x in Q1'24 vs. Q4'23 (new)
Reduction in the rate of contacts2 in 3 p.p. between Q1'23 and Q1'24 | |
R$460 M | Renegotiation and review of contracts scope (~10 % reduction in expenses) |
R$540 - | Closure of brick and mortar stores with negative profitability (2 in Q1'24, 57 in total) |
Readjustment of the Distribution Centers footprint (5 Distribution Centers readjusted to date) | |
610 M | |
Important progress in the plan to optimize brick and mortar stores profitability (~200 stores in the program) | |
R$0,9 B | Reduction in inventory days from 110 days in Q1'23 to 78 days in Q1'24 |
Novo
Novo
Novo
R$1.5-1.6 Bn | EBIT |
R$0.9 Bn | Cash |
Transformation Plan - despite funding still maturing, the following figures can already be observed:
Inventory: inventory maintained below 80 days, with higher quality.
Assortment Migration: 23 subcategories migrated from 1P channel to 3P channel, which has already reacted: GMV increased 9.6% and revenue 13,1% vs. Q1'23.
Penetration of Services: penetration of services in relation to net revenue increased to 15% in 1Q24 vs. 12% in 1Q23.
Gross Margin: reached 30%, gradually resuming historical levels.
Headcount: reduction of 14.6% in Q1'24 vs. Q1'23, equivalent to +R$ 113 million.
Brick and Mortar Store Closures: In 2023, 55 brick and mortar store were closed and 2 stores were closed in Q1'24, totaling 57 in the scope of the Plan.
Capital Structure and Liability Management: total debt reprofiling of R$ 4.1 billion, with average term increase of 22 months to 72months and reduction in average cost of (1.5 p.p.), after being approved.
Monetization of tax credits: net monetization of R$ 203 million in Q1'24 vs. R$ (12) million in Q1'23. Reduction of R$ 1.2 billion in ICMS to recover YoY.
Bartira Profit and breakeven banQi: within the scope of the Transformation Plan, in Q1'24 Bartira, our Furniture manufacturing plant evidenced profit and banQi, our Fintech, presented results close to breakeven for the 1st time.
2
RESULTS
Q1'24 | GROUP | |||
Omnichannel | ||||
R$ million | Q1'24 | Q1'23 | % | |
Total GMV | 9.687 | 10.951 | (11,5%) | |
GMV Omnichannel (1P) | 8.085 | 9.489 | (14,8%) | |
GVM Physical Stores | 5.415 | 6.067 | (10,7%) | |
GMV (1P Online) | 2.670 | 3.422 | (22,0%) | |
GMV Omnichannel (3P) | 1.602 | 1.462 | 9,6% |
Total GMV compared to Q1'23 dropped (11.5%). The 1P omnichannel GMV went down by 14.8%, comprised by a reduction of (10.7%) in brick and mortar stores and (22.0%) in online channel. In turn, 3P GMV advanced 9.6% in the period. E-commerce, 1P online + 3P, summed up R$ 4.3 billion and decreased by 12.5% vs. Q1'23.
Gross Revenue Performance by Channel
R$ million | Q1'24 | Q1'23 | % |
Physical Stores | 4.899 | 5.536 | (11,5%) |
Online | 2.642 | 3.252 | (18,7%) |
1P | 2.445 | 3.077 | (20,6%) |
3P | 198 | 175 | 13,1% |
Total Gross Revenue | 7.541 | 8.788 | (14,2%) |
In Q1'24, consolidated gross revenue decreased (14.2%) in YoY, to R$ 7.5 billion. The variation results from both the decline in revenue from brick and mortar and the decline in the online sales revenue, despite the advance in marketplace revenue of 13.1%.
Brick and Mortar - GMV and Gross Revenue
Gross GMV from brick and mortar totaled R$5.4 billion, and gross revenue was R$4.9 billion, a drop of 11.5%. Brick and mortar performance reflects change in the products mix focusing on profitability, under more restrictive demand, less credit available to consumers and closure of stores. Same-store performance (GMV) was (9.3%) in Q1'24. Considering the margin (profitability), despite retreat in revenue, we observed better performance compared to Q1'23, proving the need to adjust the products mix and cut expenses.
Throughout the quarter, in line with the Transformation Plan, we closed 2 underperforming stores, ending Q1'24 with 1,076 stores. In year to date of the Plan, 57 brick and mortar stores were closed. Most of the closures took place in municipalities with multiple stores.
1P and 3P ONLINE - GMV and Gross Revenue
1P Online GMV went down (22.0%) YoY, reaching R$2.7 billion as a result of: (i) lower investment in the B2B channel and other media (we prioritized more profitable partnerships, focusing on results), (ii) the market decline and (iii) more restrictive scenario for online purchases. Despite this context, we strengthened our presence in the core categories, in line with the strategic positioning.
3P omnichannel GMV expanded by 9.6% in Q1'24 to R$1.6 billion, but with revenue growth of +13.1% to R$198 million, as a result of the pursue of greater profitability and enhanced customer and seller experience through a greater number of services offered in our platforms, such as logistics and credit. We closed the quarter with a take rate of 12.3%, up by +0.3 p.p. YoY.
3
RESULTS
Q1'24 | GROUP | |||
Gross Revenue Breakdown | ||||
R$ million | Q1'24 | Q1'23 | % | |
Merchandise | 6.427 | 7.737 | (16,9%) | |
Freight | 89 | 89 | 0,0% | |
Services | 372 | 337 | 10,4% | |
CDC/Credit Cards | 653 | 625 | 4,5% | |
Gross Revenue | 7.541 | 8.788 | (14,2%) |
Gross revenue from merchandise performance was pressured by 1P online GMV and brick and mortar stores decline, evidenced change by (16.9%). Services revenue advanced by 10.4%, with the success from penetration of insurance sales, extended warranty and assembly. Freight revenue remained flat and revenue from financial solutions advanced by +4.5%. However, service penetration compared to net revenue increased to 15% in Q1'24 versus 12%in Q1'23, reflecting the initiatives focused on revenue increase from the Transformation Plan.
Consolidated Sales by means of payment | Q1'24 | Q1'23 | % |
Cash/Debit Card | 34,0% | 32,7% | 130bps |
CDC (Payment Book) | 15,4% | 12,3% | 310bps |
Co-branded Credit Card | 8,1% | 8,8% | (70bps) |
Third-party Credit Card | 42,5% | 46,2% | (370bps) |
Our installment plan remained a valuable tool for building customer loyalty and a competitive advantage as well, with a penetration of 15.4% over consolidated gross revenue (a 310bps increase). Cash payment growth is prominent, mainly due to greater share and appeal of payments via PIX.
Gross Profit
R$ million | Q1'24 | Q1'23 | % |
Gross Profit | 1.902 | 2.313 | (17,8%) |
% Gross Margin | 30,0% | 31,4% | (140bps) |
In Q1'24, gross profit totaled R$ 1.9 billion, with a gross margin of 30.0%, down 1.4 p.p., but with recovery of 700bps compared to Q3'23 and 240bps compared to Q4'23. Despite the retreat in net sales, healthy margin and already at historical levels is justified by the best combination of the products mix and profitable sales, after reduction in older and non-core inventory, in line with the initiative of the Transformation Plan. The amounts in Q1'23 had positive effect from tax credits of R$ 197 million, which, if excluded, would report 28.8% gross margin, a decline of 120bps vs. Q1'24.
Selling, General and Administrative Expenses
R$ million | Q1'24 | Q1'23 | % |
SG&A | (1.575) | (1.703) | (7,5%) |
% Net Revenue | (24,8%) | (23,2%) | (160bps) |
In Q1'24, selling, general and administrative expenses declined (7.5%) YoY and advanced by 160bps at (24.8%) of net revenue, due to the revenue drop. This results from the (10.5%) decline in selling expenses, with an emphasis on staff reduction (14.6%), reduction in installment plan losses (20.7%), in addition to a general improvement in the containment of expenses in the period.
Adjusted EBITDA
R$ million | Q1'24 | Q1'23 | % |
Adjusted EBITDA | 387 | 675 | (42,6%) |
% Adjusted Margin EBITDA | 6,1% | 9,2% | (310bps) |
Adjusted EBITDA reached R$ 387 million in Q1'24 and a 6.1% margin, even in a very challenging market scenario. Despite being lower by 310bps YoY, sequentially the margin is higher by 710bps and 390bps compared to Q3'23 and Q4'23, respectively, progressing towards historical levels. It should be noted that the Q1'23 values were positively impacted by R$ 197 million tax credits which, if excluded, would report a closer adjusted EBITDA margin to Q1'24, even with the decline in sales in the period.
4
RESULTS
Q1'24 | GROUP | |||
Financial Result | ||||
R$ million | Q1'24 | Q1'23 | % | |
Financial Revenue | 25 | 26 | (3,2%) | |
Financial Expenses | (710) | (857) | (17,2%) | |
Debt Financial Expenses | (142) | (155) | (8,6%) | |
CDC Financial Expenses | (205) | (201) | 1,7% | |
Expenses of Discounted Receivables | (159) | (276) | (42,5%) | |
Interest on Lease Liabilities | (111) | (117) | (5,5%) | |
Interest on trade accounts payable - agreement | (57) | (102) | (44,0%) | |
Other Financial Expenses | (36) | (5) | n/a | |
Financial Results pre monetary update | (685) | (832) | (17,6%) | |
% Net Revenue | (10,8%) | (11,3%) | 50bps | |
Monetary Restatements | 199 | 5 | n/a | |
Net Financial Results | (486) | (827) | (41,2%) | |
% Net Revenue | (7,7%) | (11,2%) | 350bps |
In Q1'24, the net financial result was R$(486) million, 3.5 p.p. lower as a percentage of the Net Revenue (7.7%). Expenses with debt interest dropped and expenses with receivables discounts and supplier agreement were substantially reduced. Monetary restatements had a positive effect due to cases related to the "Thesis of the Century" (a well-known legal thesis in Brazil related to taxation).
Net Profit
R$ million | Q1'24 | Q1'23 | % |
EBT | (502) | (553) | (9,2%) |
% Net Revenue | (7,9%) | (7,5%) | (40bps) |
Income Tax & Social Contribution | 241 | 256 | (5,7%) |
Net Income (Loss) | (261) | (297) | (12,2%) |
% Net Margin | (4,1%) | (4,0%) | (10bps) |
EBT was R$(502) million in the quarter, reflecting market performance and also decline in sales, but it evolved YoY by 9.2%. The net profit (loss) was R$(261) million and 12.2% lower YoY, with net margin of (4.1%) in the quarter, flat YoY.
Financial Cycle
(+/-) Q1'24 | ||||||||
R$ million | Q1'24 | Q4'23 | Q3'23 | Q2'23 | Q1'23 | vs. Q1'23 | ||
Inventory | 4.355 | 4.353 | 4.958 | 5.738 | 6.501 | (2.146) | ||
Days of Inventory | 1 | 78 | 76 | 83 | 97 | 110 | (32 days) | |
Suppliers w/o agreement and others | 6.336 | 6.379 | 6.664 | 7.151 | 7.593 | (1.257) | ||
Trade accounts payable - agreement | 1.919 | 1.765 | 1.407 | 1.550 | 1.381 | 538 | ||
Others | 645 | 823 | 665 | 714 | 626 | 20 | ||
Total Days of Suppliers | 1 | 114 | 112 | 112 | 121 | 128 | (14 days) | |
Change in Financial Cycle | 36 | 36 | 29 | 24 | 18 | 18 |
- Days of COGS
Inventory ended Q1'24 with a reduction of R$2.1 billion (32 days) YoY and a flat vs. Q4'23. The variation is the result of the strategy applied to reduce older inventory addressed in the Transformation Plan, which allowed for greater quality inventory for the Company.
5
RESULTS
Q1'24GROUP
Capital Structure
(+/-) Q1'24 | ||||||
R$ million | Q1'24 | Q4'23 | Q3'23 | Q2'23 | Q1'23 | vs. Q1'23 |
(+) Payment Book (CDCI) - Assets | 5.343 | 5.355 | 5.326 | 5.348 | 5.397 | (54) |
(-) Payment Book (CDCI) - Liabilities | (5.243) | (5.383) | (5.387) | (5.437) | (5.549) | 306 |
(=) Net Payment Book (CDCI) | 100 | (28) | (60) | (90) | (152) | 252 |
(-) Current Loans and Financing | (1.327) | (2.331) | (1.866) | (1.241) | (1.700) | 373 |
(-) Noncurrent Loans and Financing | (2.695) | (1.651) | (1.805) | (2.421) | (2.398) | (297) |
(=) Gross Debt | (4.022) | (3.982) | (3.671) | (3.662) | (4.098) | 76 |
Trade accounts payable - agreement | (1.919) | (1.765) | (1.407) | (1.550) | (1.381) | (538) |
(=) Gross Debt + Trade accounts payable - agreement + Net CDCI | (5.841) | (5.776) | (5.138) | (5.302) | (5.631) | (210) |
(+) Cash and financial investments | 1.868 | 2.573 | 1.642 | 874 | 1.050 | 818 |
(+) Accounts Receivable - Credit Cards | 387 | 273 | 471 | 1.094 | 1.594 | (1.207) |
(+) Other Accounts Receivable | 645 | 733 | 686 | 819 | 903 | (258) |
Cash, Investments, Credit Cards, Advances and Others | 2.900 | 3.580 | 2.800 | 2.787 | 3.547 | (647) |
(=) Adjusted Net Cash | (1.122) | (403) | (871) | (875) | (550) | (572) |
(=) Adjusted Net Cash + Trade accounts payable - agreement + Net CDCI | (2.941) | (2.196) | (2.338) | (2.514) | (2.084) | (857) |
Short-term Debt/Total Debt | 33% | 59% | 51% | 34% | 41% | |
Long-term Debt/Total Debt | 67% | 41% | 49% | 66% | 59% | |
Reported Adjusted EBITDA (LTM) | 953 | 1.240 | 1.706 | 2.162 | 2.384 | |
Adjusted Net Cash/Adjusted EBITDA | -1,2x | -0,3x | -0,5x | -0,4x | -0,2x | |
Adjusted Net Cash/Adjusted EBITDA + Trade accounts payable - agreement + Net CDCI | -3,1x | -1,8x | -1,4x | -1,2x | -0,9x | |
Shareholders' Equity | 3.202 | 3.454 | 4.434 | 4.610 | 5.064 |
Our gross debt was R$4.0 billion (not including CDCI and supplier agreement liability). For the purposes of Covenants and understanding the capital structure, this CDCI liability has a corresponding asset, accounts receivable from CDCI, both presented in the first lines of the table above and in the Financial Statements under explanatory notes 6.1 and 14. The Company showed adjusted net debt of R$(1.1) billion and net equity of R$3.2 billion, with leverage ratios at levels below financial covenants. In Q1'24, cash including undiscounted receivables totaled R$2.9 billion. The financial leverage indicator, measured by net cash/adjusted EBITDA over the last 12 months, was (1.2x). Considering the supplier agreement balance and the CDCI balance, the same indicator was (3.1x).
Debt maturity schedule - Q1'24 (after prepack approval)
The liquidity position including undiscounted receivables totaled R$2.9 billion. After the announced reprofiling of the debt, and after Q1'24 closure, of the R$4.0 billion in debt, we have the full amount (100%) with long-term maturities. The average cost of loans and financing is currently CDI + 2.7% y/y and will become CDI + 1.2 after "prepack" approval. Presented below is the schedule of maturities, to better illustrate the debt profile. It can be observed that there is R$ 4.3 billionreduction in disbursement with debts for the next 4 years, with R$ 1.5 billion already in 2024.
Q1'24 Scenario
R$ mm
R$ mm
CASH DISBURSEMENT UNTIL 2027: R$4.8 bi
1.384
1.237 | |||||||||||
721 | |||||||||||
536 | |||||||||||
313 | 292 | 207 | |||||||||
139 | |||||||||||
21 | 4 | 21 | 16 | ||||||||
0 | 0 | ||||||||||
2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | |||||
AmortizationAmort zação JurosInterestda Dívida | |||||||||||
Debts Covered | Cost | Average Term | |||||||||
CDI + 2.70% | 22 months | ||||||||||
debentures and | |||||||||||
6th, 7th, 8th and 9th | |||||||||||
Bank Credit Notes (CCBs) |
After liability management
R$ mm
CASH DISBURSEMENT UNTIL 2027: R$0.5 bi | 2.579 |
1.886 | |
900 | |||||||||||
300 | 200 | ||||||||||
150 | 103 | 150 | 95 | 113 | |||||||
0 | 0 | 0 | 0 | ||||||||
2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | |||||
AmortizationAmortização | JurosInterestda Dívida | ||||||||||
Debts Covered | Cost | Average Term | |||||||||
CDI + 1.20% | 72 months | ||||||||||
New debenture instrument |
Savings of R$60mm p.a. in debt interest
6
RESULTS
Q1'24GROUP
Management Cash Flow
Q1'24: despite R$261 million net Inventories, compared to Q4'23,
Net income (loss)
Adjusted net income (loss)
loss, cash profit was positive at R$689 million.
remained flat, while we had a negative effect in terms of suppliers due to anticipations causing a variation of R$206 million. The
Q1'20 | Q1'21 | Q1'22 | Q1'23 | Q1'24 | period ended with 78 days of inventory |
13 | 180 | 18 | (297) | (261) | |
and 114 days of suppliers. | |||||
613 | 816 | 1.069 | 986 | 689 | |
Working Capital Variation | (1.410) | (1.814) | (539) |
Inventory | (682) | (1.709) | 243 |
Suppliers | (728) | (105) | (782) |
Losses | (127) | (11) | (254) |
Lawsuits | (148) | (306) | (408) |
Onlending of third parties | (73) | (213) | (163) |
Taxes to Recover/Obligations | (279) | (245) | (135) |
Other assets and liabilities | (207) | (579) | (547) |
Net Cash (used) in Operating Activities | (1.631) | (2.352) | (977) |
Net Cash (used) in Leasing Activities | (228) | (221) | (279) |
Net Cash (used) in Investments Activities | (83) | (184) | (453) |
Free Cash Flow | (1.942) | (2.757) | (1.709) |
Net proceeds | 633 | 922 | 529 |
Payments of Interest | (174) | (124) | (297) |
Follow-on, net of costs | 1 | - | (28) |
In the Losses line, we had an improvement of 18% YoY, in Lawsuits the improvement was 17% in the same period. Taxes, at R$203 million, was another positive highlight in view of the level of monetization in the period.
Therefore, we ended Q1'24 with free cash flow of (182) million, still not enough to pay interest of R$ 625 million, but within the retail seasonality, this is already the best performance in the last 5 years. Thus, implementation of the Transformation Plan was essential to improve the Company's cash flow performance.
Cash Flow from Financing Activities | 460 | 798 | 204 |
Cash and cash equivalents of the Opening balance | 4.802 | 9.047 | 6.703 |
Cash and Cash equivalents at the End of the Period | 3.320 | 7.088 | 5.198 |
Variation Opening Balance - End of the Period | (1.482) | (1.959) | (1.505) |
Free Cash Flow over the last 5 years
(176)
(644)
(1.709)
(1.942)
(2.757)
Q1'20 Q1'21 Q1'22 Q1'23 Q1'24
On the left side we see the free cash flow of (176) million in Q1'24 and the other 1st quarters of the last 4 years, which within the seasonality of retail, is already the best performance of the last 5 years.
Variation in cash balance over the last 5 years
On the right side we see the variation in the cash balance of (678) | (678) | |||
million in Q1'24 and the other 1st quarters of the last 4 years, | ||||
which within the seasonality of retail, is also the best | ||||
(1.482) | (1.505) | |||
performance of the last 5 years. | ||||
(1.959) | ||||
(2.605) | ||||
Q1'20 | Q1'21 | Q1'22 | Q1'23 | Q1'24 |
7
RESULTS
Q1'24GROUP
CAPEX
In the quarter, Casas Bahia Group's investments totaled R$34 million, with 90% of the total addressed to technology-related projects to support the Company's growth, digitalization and customer experience. In Q1'23, Capex was 68% lower vs. Q1'22.
R$ million
Logistics
New Stores
Stores Renovation
Technology
Total
Q1'24 | Q1'23 | % |
3 | 5 | (41%) |
1 | 7 | (82%) |
2 | 6 | (56%) |
27 | 90 | (70%) |
34 | 108 | (68%) |
Store Footprint by Format and Brand
Casas Bahia | Q1'23 | Q4'23 | Closure | Q1'24 |
Street | 788 | 765 | - | 765 |
Shopping Malls | 186 | 178 | 1 | 177 |
Consolidated (total) | 974 | 943 | 1 | 942 |
Sales Area ('000 m2) | 898 | 879 | 0 | 878 |
Total Area ('000 m2) | 1.415 | 1.385 | 1 | 1.384 |
In the quarter, 2 stores were closed, 1 under Casas Bahia brand and 1 under Ponto brand, totaling 1,076 brick and mortar stores at the end of the period. Our Transformation Plan is still in progress, which includes rigorous monitoring of each store's performance, directing corrective actions and, if necessary, closing stores that don't generate value.
Pontofrio | Q1'23 | Q4'23 | Closure | Q1'24 |
Street | 88 | 84 | - | 84 |
Shopping Malls | 67 | 51 | 1 | 50 |
Consolidated (total) | 155 | 135 | 1 | 134 |
Sales Area ('000 m2) | 86 | 76 | 1 | 75 |
Total Area ('000 m2) | 140 | 123 | 1 | 122 |
Consolidated | Q1'23 | Q4'23 | Closure | Q1'24 |
Street | 876 | 849 | - | 849 |
Shopping Malls | 253 | 229 | 2 | 227 |
Consolidated (total) | 1.129 | 1.078 | 2 | 1.076 |
Sales Area ('000 m2) | 984 | 955 | 1 | 954 |
Total Area ('000 m2) | 1.555 | 1.508 | 2 | 1.506 |
Distribution Centers | Q1'23 | Q4'23 | Closure | Q1'24 |
DCs | 29 | 29 | - | 29 |
Total Area ('000 m2) | 1.263 | 1.178 | - | 1.178 |
Consolidated (Total) | Q1'23 | Q4'23 | Closure | Q1'24 |
Total Area ('000 m2) | 2.818 | 2.686 | 2 | 2.684 |
Logistics Ecosystem
Focus remains on advancing the revenue from logistics as a service, reducing the cost of serving and improving the level of service (including marketplace sellers and partners).
1P, 3P and Casas Bahia Group Fulfillment
- 1P improved 21% YoY and 4% sequentially
- 3P improved 16% YoY and 14% sequentially
- Casas Bahia Group Fulfillment improved 20% YoY and 35% sequentially
- Customers and revenue in fulfillment advanced +12% and +21% YoY, respectively
Logistics - Open Sea
Casas Bahia Group's logistics is also a business. We are advancing in various sectors (clothing, home centers, tools, etc.). Hence, we not only add density and volume to our logistics, thereby reducing costs, but also generate profitable incremental revenue for Casas Bahia Group.
- Growth of +84% in freight revenue YoY
- Open sea customers and number of orders increased +53% and +74%, respectively
8
RESULTS
Q1'24
Financial Solutions
Main Figures Q4'23
- R$ 10.5 billion total TPV, 12% lower than Q4'22
- Installment plan portfolio totaled R$ 5.3 billion
- Over 90 came at 9.0% and portfolio loss of 3.6%
- Co-brandedcard TPV came to R$5.4 billion, 13% lower YoY, and, reaching 3.8 million customers
- banQi reached +7.4 million open accounts, +12% increase YoY
GROUP
TPV
(R$ million)
11.256 | 11.904 | ||
10.526 | |||
1.003 | |||
970 | |||
8.915 | 346 | ||
214 | 5.520 | ||
5.170 | 4.880 | ||
4.090 | |||
4.611 | 5.116 | 5.381 | 5.300 |
Q1'21 | Q1'22 | Q1'23 | Q1'24 |
BNPL | Cards | banQi + banQi Payments |
TPV Card: On and Off us
Installment Plan - Buy Now, Pay Later
In Q1'24, the installment plan active portfolio slowed down (1.5%) YoY, reaching R$5.3 billion. Installment Plan is a profitable tool in the brick and mortar and online channel (1P and 3P) and a purchase opportunity for a population that does not have access to credit or has low card limit. In brick-and-mortar stores, penetration reached 25.5% vs. 21.5% YoY. In 1P online, the share of sales in digital installment plan was 6.3% vs. 4.6% YoY, while in 3P it accounted for 5.3% of sales vs. 2.9% YoY and it is available for +2.7 million SKUs. In addition, through the capillarity of our digital installment plan, we have already sold in +4,400 municipalities without our brick-and-mortar stores, reiterating that the installment plan in digital channels means a profitable growth lever built on Casas Bahia Group's strength. In addition, 20% of installment plan receipts are paid through banQi app.
Share of the CDC in Brick and
Mortar Stores (%)
31,1
29,2 | 29,0 | ||||
25,4 | 26,6 | 25,5 | |||
24,9 | |||||
21,8 | 21,5 | 22,8 | 22,3 | ||
19,8 |
Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24
Installment Plan Production - Total
(R$ billion)
2,1 | |||||||||||
1,7 | 1,8 | 1,7 | 1,7 | 1,9 | 1,7 | 1,7 | 1,7 | 1,8 | 1,8 | 1,8 | |
1,5 | |||||||||||
Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24
Share of the Digital CDC (%)
1P Online | ||||||||
3P Online | 6,3 | 7,0 | 6,4 | 6,3 | ||||
6,1 | 5,9 | |||||||
5,4 | 5,6 | |||||||
5,6 | 5,3 | |||||||
4,1 | 4,0 | 4,6 | ||||||
3,5 | 4,0 | 3,6 | 5,0 | |||||
2,8 | 2,9 |
2,2 2,0
1,4
Digital Installment Plan Production
(R$ million)
3P | 1P | ||||||||||
242 | 254 | 254 | |||||||||
229 | 226 | ||||||||||
215 | |||||||||||
208 | |||||||||||
198 | |||||||||||
167 | 181 | ||||||||||
140 | 183 | 187 | 187 | ||||||||
182 | |||||||||||
99 | 192 | 199 | |||||||||
89 | 208 | 187 | 147 | ||||||||
140 | |||||||||||
140 | |||||||||||
99 | 89 | 67 | 67 | ||||||||
59 | |||||||||||
30 | 27 | 34 | 44 | ||||||||
11 | 23 | ||||||||||
Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24
9
RESULTS
Q1'24GROUP
Aging of the BNPL Portfolio
(R$ million)
BNPL | Q1'23 | % total | Q1'24 | % total | Var(%) | |
Not Yet Due | 3.842 | 71,8% | 3.837 | 72,9% | -0,1% | |
Past due | ||||||
Past due from 6 to 30 days | 533 | 10,0% | 492 | 9,4% | -7,8% | |
Past due from 31 to | 60 days | 301 | 5,6% | 267 | 5,1% | -11,3% |
Past due from 61 to | 90 days | 190 | 3,6% | 185 | 3,5% | -2,8% |
Past due from 91 to | 120 days | 163 | 3,0% | 159 | 3,0% | -2,3% |
Past due from 121 to 150 days | 161 | 3,0% | 170 | 3,2% | 5,4% | |
Past due from 151 to 180 days | 159 | 3,0% | 150 | 2,9% | -5,9% | |
Total | 5.352 | 100,0% | 5.260 | 100,0% | -1,7% |
Evolution of the Active Portfolio *
(R$ billion)
5,6 | 5,7 | 5,5 | 5,4 | 5,3 | 5,3 | 5,3 | 5,3 | |||||
5,2 | ||||||||||||
5,0 | ||||||||||||
4,9 | ||||||||||||
4,7 | ||||||||||||
4,6 | ||||||||||||
7,9% | 7,4% | 7,4% | 8,7% | 9,0% | 8,5% | 8,4% | 9,5% | 9,0% | 9,1% | 9,3% | 9,4% | 9,0% |
Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 | ||||||||||||
Active portfolio* | 90+ overdue |
*Active portfolio = basis of the installment plan without effect of the interest to be incurred.
ADA
(R$ million)
610 | 643 | 621 | 656 | 626 | 624 | 658 | 627 | 611 | 601 | 601 | 595 | |
587 | ||||||||||||
13,2% 13,6% 12,8% 13,1% 12,2% 11,3% 11,7% 11,4% 11,3% 11,4% 11,4% 11,2% 11,1%
Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24
ADA Balance | ADA Balance/Active Portfolio |
Loss on Portfolio
(R$ million)
328 | ||||||||||||
256 | 252 | 261 | 249 | |||||||||
241 | 239 | |||||||||||
224 | ||||||||||||
199 | 183 | 191 | ||||||||||
170 | ||||||||||||
110 | ||||||||||||
4,7% | 4,0% | 4,7% | 5,8% | 4,6% | 4,5% | 4,9% | 4,7% | 4,5% | ||||
2,4% | 3,5% | 3,6% | 3,6% | |||||||||
Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 | ||||||||||||
Loss | Loss/Active Portfolio |
Reduction in PDD expenses was observed, and coverage more than surpasses the losses. The over 90 rate was 9.0%, flat YoY, reflecting the portfolio quality trend. The level of losses on the active portfolio was 3.6%, in a sequence of drops, below the historical average, confirming the other indicators in the credit business (BNPL).
banQi
banQi will focus on generating value for the Company, using the current ecosystem. App downloads total 19.5 million, with 7.5 million accounts. The app is increasingly part of customers' daily lives, and we highlight: (i) R$19 billion in transactions YoY; (ii) YoY TPV reaching R$9.5 billion; and (iii) the frequency of use continues to improve quarter after quarter, reaching 48x in the last 360 days.
Apps Downloads | ||||||||||||||||||
Q1'20 | Q2'20 | Q3'20 | Q4'20 | Q1'21 | Q2'21 | Q3'21 | Q4'21 | Q1'22 | Q2'22 | Q3'22 | Q4'22 | Q1'23 | Q2'23 | Q3'23 | Q4'23 | Q1'24 | CAGR | |
Quarter | 205 | 308 | 673 | 1.088 | 1.205 | 1.246 | 2.660 | 2.847 | 1.160 | 1.282 | 1.359 | 1.347 | 816 | 793 | 819 | 703 | 650 | 2021-2024 |
Accumulated | 557 | 864 | 1.538 | 2.626 | 3.831 | 5.077 | 7.737 | 10.584 | 11.744 | 13.026 | 14.385 | 15.732 | 16.548 | 17.341 | 18.160 | 18.863 | 19.513 | 172% |
New Accounts | ||||||||||||||||||
Q1'20 | Q2'20 | Q3'20 | Q4'20 | Q1'21 | Q2'21 | Q3'21 | Q4'21 | Q1'22 | Q2'22 | Q3'22 | Q4'22 | Q1'23 | Q2'23 | Q3'23 | Q4'23 | Q1'24 | CAGR | |
Quarter | 101 | 175 | 407 | 596 | 653 | 596 | 979 | 712 | 518 | 547 | 575 | 598 | 263 | 222 | 181 | 152 | 99 | 2021-2024 |
Accumulated | 212 | 387 | 794 | 1.391 | 2.044 | 2.640 | 3.619 | 4.331 | 4.849 | 5.396 | 5.971 | 6.569 | 6.832 | 7.054 | 7.235 | 7.387 | 7.486 | 154% |
Total Transactions | ||||||||||||||||||
Q1'20 | Q2'20 | Q3'20 | Q4'20 | Q1'21 | Q2'21 | Q3'21 | Q4'21 | Q1'22 | Q2'22 | Q3'22 | Q4'22 | Q1'23 | Q2'23 | Q3'23 | Q4'23 | Q1'24 | CAGR | |
Quarter | 13 | 32 | 143 | 288 | 402 | 784 | 1.238 | 1.351 | 1.501 | 1.750 | 1.904 | 2.061 | 1.839 | 1.876 | 1.868 | 1.834 | 591 | 2021-2024 |
Accumulated | 23 | 55 | 196 | 484 | 887 | 1.671 | 2.909 | 4.260 | 5.761 | 7.511 | 9.415 | 11.476 | 13.315 | 15.191 | 17.059 | 18.893 | 19.484 | 280% |
Total TPV | ||||||||||||||||||
Q1'20 | Q2'20 | Q3'20 | Q4'20 | Q1'21 | Q2'21 | Q3'21 | Q4'21 | Q1'22 | Q2'22 | Q3'22 | Q4'22 | Q1'23 | Q2'23 | Q3'23 | Q4'23 | Q1'24 | CAGR | |
Quarter | 6 | 14 | 53 | 130 | 214 | 399 | 595 | 656 | 742 | 866 | 936 | 1.023 | 909 | 923 | 919 | 903 | 293 | 2021-2024 |
Accumulated | 10 | 23 | 76 | 206 | 420 | 820 | 1.415 | 2.071 | 2.813 | 3.679 | 4.615 | 5.638 | 6.547 | 7.470 | 8.389 | 9.292 | 9.584 | 284% |
Store Transactions | ||||||||||||||||||
Q1'20 | Q2'20 | Q3'20 | Q4'20 | Q1'21 | Q2'21 | Q3'21 | Q4'21 | Q1'22 | Q2'22 | Q3'22 | Q4'22 | Q1'23 | Q2'23 | Q3'23 | Q4'23 | Q1'24 | CAGR | |
Quarter | 4 | 5 | 39 | 80 | 86 | 138 | 180 | 171 | 163 | 184 | 173 | 175 | 138 | 136 | 130 | 122 | 38 | 2021-2024 |
Accumulated | 7 | 12 | 50 | 131 | 217 | 354 | 534 | 705 | 868 | 1.052 | 1.225 | 1.400 | 1.538 | 1.674 | 1.804 | 1.926 | 1.964 | 208% |
Average frequency use of the banQi app (# of times over 360 days) | CAGR | |||||||||||||||||
Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 | Q3'21 | Q4'21 | Q1'22 | Q2'22 | Q3'22 | Q4'22 | Q1'23 | Q2'23 | Q3'23 | Q4'23 | Q1'24 | 2021-2024 | ||||||
Average frequency | 5 | 5 | 6 | 7 | 10 | 12 | 14 | 17 | 19 | 21 | 23 | 25 | 29 | 33 | 42 | 48 | 188% |
10
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Grupo Casas Bahia SA published this content on 08 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 May 2024 22:50:07 UTC.
