Grupo Casas Bahia SA (BSP:BHIA3) Q1 2025 Earnings Call Highlights: Strong Physical Store Growth ...

GuruFocus News

Fri, May 16, 2025, 12:17 AM 3 min read

Release Date: May 15, 2025

For the implicit transcript of the net call, delight notation to the afloat net telephone transcript.

• Grupo Casas Bahia SA (BSP:BHIA3) reported a 10% maturation successful consolidated GMV, with carnal stores showing a important 17.7% increase.

• The institution maintained enactment and expanded marketplace stock successful each halfway categories.

• Profitability improved with a 47% summation successful EBITDA, reaching a borderline of 8.2%, marking the sixth consecutive 4th of improvement.

• The 'buy now, wage later' programme saw important growth, contributing positively to the company's profitability.

• Operational leverage and outgo absorption led to a simplification successful SG&A expenses by 1.7 percent points, demonstrating effectual outgo control.

• Despite improvements, nett losses remain, indicating ongoing fiscal challenges.

• High involvement rates proceed to unit user capableness and demand, impacting income potential.

• The company's currency travel was negative, with a escaped currency travel shortage of 322 cardinal BRL owed to moving superior consumption.

• There is simply a request for further betterment successful the superior operation to trim fiscal expenses and leverage.

• The macroeconomic situation remains challenging, with precocious involvement rates affecting installment values and user spending.

• Warning! GuruFocus has detected 4 Warning Signs with BSP:BHIA3.

Q: Can you supply insights connected the maturation improvement and request astatine carnal stores, particularly considering the weaker show successful February and March? Also, however is the recognition appetite being managed fixed the macroeconomic context? A: The maturation improvement is challenging to foretell owed to the macroeconomic environment. We person adopted a blimpish attack to recognition since October past year, considering imaginable recession risks. Despite a weaker request successful February and March, May has shown beardown performance, and we expect to proceed gaining marketplace share. We are cautious with credit, focusing connected maintaining steadfast delinquency rates portion being prepared for imaginable macroeconomic changes. (Respondent: CEO)

Q: What is the strategy for ramping up integer sales, and however are you addressing NPL and different fiscal metrics? A: We are focusing connected expanding integer penetration and improving CRM to interact with our 116 cardinal customers effectively. Our strategy includes enhancing the bargain now, wage aboriginal exemplary and maintaining a blimpish attack to credit. We purpose to support nett nonaccomplishment beneath 5.4% and amended profitability done operational leverage. (Respondent: CEO)