Marisa closes 88 stores under restructuring; share rises 7% – 07/17/2023 – Market

Marisa Lojas shares rose on Monday morning (17th), after the company announced the conclusion of its restructuring plan, with the closing of physical stores, cutting expenses and renegotiating debts with suppliers, resale partners and landlords.

Around 11:20 am, Marisa’s shares were up 7.59% on B3, at R$ 0.85. In the year, the paper accumulates a drop of almost 33%.

According to a material fact attached to the CVM (Securities and Exchange Commission), Marisa said that the company’s restructuring program, called the operational optimization plan, resulted in the closure of 88 physical stores – a lower number than initially projected, with the closure of 92 units .

The retailer had to spend BRL 44.5 million to close the stores, a cost that was also lower (16% lower) than previously estimated.

With this, Marisa expects a potential capture of R$ 40 million in Ebitda (operating profit, before discount with interest, taxes, depreciation and amortization) this year. From 2024, the company projects around BRL 60 million a year in Ebitda. In 2022, the company’s unadjusted operating profit was BRL 28 million.

With the closure of physical stores, Marisa now has 246 units, with a presence in all Brazilian states. According to the company, the focus now is to increase productivity and operating results, “with support from the digital arm and innovations in the operating model”.

Marisa also announced the completion of the first part of the process to reduce general expenses, with sales and the administrative sector, enabling an extra cash generation of R$ 35 million per year.

“Throughout the second half, third-party services and other expenses will be optimized, which should generate additional savings of at least R$ 10 million per year”, said Marisa in the material fact.

Finally, the company reported that it renegotiated 90% of its debts with suppliers, and 97% of the total debts with resale partners. In addition, the company reached settlements with landlords for 80% of the company’s rent debt.