2023-11-17 00:49:02
Americanas today disclosed the extent of the damage caused by the fraud – and tried to sell a vision of the future following its recovery plan is approved.
The highlights of the 2022 balance sheet – presented for the first time today – and the re-presentation of the 2021 results are:
Net worth: – R$ 26,7 bi
Recurring EBITDA*: – R$ 2.4 billion (2021) and – R$ 4.1 billion (2022)
Guidance EBITDA 2025*: R$1,5 bi
Net loss: R$ 6.2 billion (2021) to R$ 12.9 billion (2022)
Net debt: R$ 13.9 billion (2021) to R$ 26.3 billion (2022)
Gross debt: R$ 27.6 billion (2021) to R$ 37.3 billion (2022)
Guidance gross debt 2025: R$ 1 billion to R$ 1.5 billion
*Ex-IFRS (following rental costs)
The numbers are horrifying, but they are not shocking.
“We finally have a balance sheet, which makes room for the RJ plan to be voted on,” says a creditor.
The expectation of Americanas and some of the creditors is to be able to convene the meeting of creditors and vote on the plan later this year.
If the plan is approved, the debt might fall to the range between R$1 billion and R$1.5 billion – which equates to the company’s capital structure (without considering the sales of assets such as Hortifruti Natural da Terra).
The biggest question is whether the company is operationally viable. Management presented a guidance positive for 2025 EBITDA, but creditors, managers and analysts reacted with skepticism – due to the projection itself and the willingness to make estimates in the midst of so much uncertainty.
“I think the company got ahead of itself. It is already difficult to make projections for retailers who have a greater level of certainty. Imagine for Americanas,” said a manager.
“The company only had this level of EBITDA when it was manipulating results,” says another manager.
CEO Leonardo Coelho admits that the goal is aggressive, but explained why he thinks it is viable to deliver it.
“Americanas has a difference from other companies, which is great execution discipline. Once the direction is given, there is an ability to implement quickly,” Coelho told Brazil Journal.
This direction provides for a more rational operation than in the past. The focus is no longer on increasing GMV but on selling products with a margin and in categories in which Americanas is a reference.
Physical stores, which do not have salespeople, must stop offering products that generally depend on a salesperson to assist the consumer, such as household appliances, notebooks and large TVs.
Offering these products in stores implies high logistical costs and, when they were not sold and became obsolete, they had to be sold on clearance, with a low or negative margin.
These products must be offered online, but preferably via 3P. “1P is being discussed on a case-by-case basis with some industries where it makes sense,” said Coelho on the call with analysts this morning.
Online, the big discounts also end, and installments and shipping need to pay off.
Furthermore, when selling products for which Americanas is a reference in physical stores, the company becomes less dependent on VPC contracts, funds. “VPC needs to be used, but it cannot be the star of the operation, as it was in the past,” Coelho told Brazil Journal.
The company’s expectation is that online will reach the breakeven in 2025, and will be, according to the CEO, “much smaller” than it was in the past and smaller than the physical operation.
“The company is selling dreams,” says a manager.
Another market doubt concerns the positioning of the external audit, BDO RCS. The audit refrained from giving an opinion on the financial statements, reported that it did not have “appropriate and sufficient” evidence and said that it was unable to confirm data on inventories and costs of goods sold.
According to Coelho, part of the reservations is due to the fact that the 2021 balance sheet suffers the effects of the union of B2W and Lojas Americanas operations, and the information is not complete, but it is what is available.
Regarding stocks, Coelho informed that he will present his inventory by December and, if there are adjustments to stocks, they will be made in the 2023 balance sheet.
Regarding abstention, CFO Camille Faria stated that it is linked to the lack of an RJ plan. “Without this, there are doubts regarding the company’s continuity.”
The RJ plan that was presented by management in the earnings call foresees a capitalization of R$12 billion by reference shareholders, the conversion of another R$12 billion of debt into equity and a series of discounts on debt payments.
It also foresees that some of the creditors will once once more finance the company via anticipation of performed receivables and will once once more provide guarantees.
Giuliana Napolitano
1700288656
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