Via Varejo reverses loss and has profit of R$ 65 million in the second quarter

Via Varejo had net accounting income of R$ 65 million in the second quarter, reversing a loss of R$ 162 million a year earlier, with strong e-commerce performance, as isolation measures due to the Covid-19 pandemic increased online sales.
"We started to explore e-commerce to the fullest, with great success, achieving significant results," said the owner of the Ponto Frio and Casas Bahia networks, among others, in a document on the balance sheet released on Wednesday night.
Still, the company had an operating loss of R$ 176 million, due to falling revenue, fixed costs linked to the closing of stores in the pandemic and increased financial expenses. But the loss was less than a year earlier (R$ 296 million).
The result also includes final credit of ICMS in the PIS/Cofins database totaling R$ 364 million in the second quarter.
Net revenue fell 12.4% to R$ 5.28 billion, while gross revenue fell 7.8% to R$ 6.46 billion, but with a gross margin increase from 27.9% to 35.3%. Gross revenue in physical stores fell 63%, to R$ 2.18 billion, while online revenue jumped almost 300%, to R$ 4.28 billion.
Total ecommerce sales, including marketplace, and stores (GMV - Gross Merchandise Volume) were almost stable (+0.5%) in the second quarter, at R$ 7.26 billion, while gmv only from online commerce, including marketplace, jumped to R$ 5 billion, from R$ 1.3 billion a year earlier.
In the second quarter, sales, general and administrative expenses increased 0.7% to R$ 1.365 billion, also increasing the percentage in relation to revenue to 25.9%, from 22.5% a year earlier. Excluding non-recurring factors, these expenses fell 9.7%.
Delinquency over 90 days reached 13.5% at the end of the quarter, but the company said it saw a strong improvement in receipts during May and June, and that July and August remain strong. "We expect during the third quarter to catch up with store closures." In July, this rate stood at 9%.
Earnings before interest, taxes, depreciation and amortization (Ebitda) increased 71.7% in the second quarter compared to the same period a year earlier, to R$ 532 million, with Ebitda margin advancing from 5.1% to 10.1%. In adjusted terms, totaled R$ 555 million (+45.7%), with the margin rising to 10.5%.
Adjusted operating Ebitda increased 76%, to R$ 314 million, with an increase of 2.9 percentage points in adjusted operating Ebitda margin, at 5.9%.
The company attributed the result to factors such as "the exceptional sale of the online channel, the evolution of product margin and the actions of reduction of fixed and variable expenses".
The net financial result of non-recurring effects was negative at R$ 323 million, an increase of 18% year-on-year, representing 6.1% of net revenue, compared to 4.6% a year earlier, affected by CCB (bank credit note) and debt extension.
Via Varejo said it ended the second quarter with a total cash position of R$ 7.4 billion and adjusted net cash of R$ 2.9 billion, including the portfolio of un discounted receivables and stretching via debt financial instrument.