Magazine Luiza says investigating operations with suppliers – 03/10/2023 – Market

Retailer Magazine Luiza said in a statement that its conduct and ethics committee was aware of an anonymous complaint citing irregularities involving bonus operations related to purchases from suppliers and distributors.

The complaint mentioned three distributors who represented, in 2022, around 3.5% of the total value of product purchases made by the company.

According to Magalu, the audit, risk and compliance committee has already started investigating the facts narrated and will report its conclusions to the board of directors at the end of the work.

The company also disclosed, this Friday (10), net loss for the fourth quarter – the busiest period for retail -, reversing the positive result of a year earlier.

Magalu had a net loss of BRL 35.9 million in the last three months of last year, compared to a profit of BRL 93 million in the same period of 2021. Performance, however, improved in the quarterly comparison, supported by sales growth.

Total revenue rose 15.5% to R$17.96 billion, helping to raise Ebitda (earnings before interest, taxes, depreciation and amortization) and operating margin.

Ebitda reached R$ 642.3 million against a negative performance of R$ 7.9 million a year earlier. The margin rose 5.9 percentage points in the period, to 5.8%.