With $ 4 billion, B2W tries to turn the game

About three years ago, B2W lived the worst phase of its history. The owner of the websites Americanas.com and Submarino was facing the failure of a blackout in the middle of Christmas 2010 logistics. The index of complaints in all their sites hit record. The image of its brands was heavily affected. In 2011, B2W lost 70% of its market value, there was suspicion in the industry as to the reaction capacity of the company, which came to an end in 2012 at a loss record of r $ 170 million.
The current B2W has been trying to distance himself from that. With loans and debentures, among other sources, were invested R $ 700 million operation in 2013 and analysts estimate that ears will be more $ 600 million to $ 700 million in 2014. Is double paid three years ago. Between April and June 2013 2014, spent $ 260 million on five acquisitions-came to buy at least two businesses that provided services to rivals. In just one month (October 2013), opened three storage centres and in the last 12 months, hired 600 engineers.
The value found with source close to B2W controllers, the same partners of Lojas Americanas, projected back into quarterly profit by the end of 2015 (she loses money since the third quarter of 2010) and expansion in net revenue of 25% to 35% over the next three years. Is a rate above the industry forecast of 20% on average. "One of the efforts is to grow at this rate without costs climb through the roof, two to three times [high on]
recipe, as in other years. Is to gain scale work for the company, "said a close adviser to the company. Sought, the company gave no interview.
A new fact has weight in these projections: B2W never had so much money available to try to get back on track. Are almost r $ 4 billion expected (were $ 110 million in cash at the beginning of the year), with r $ 2.38 billion in capital increase to be completed this month and $ 1.46 billion in loan from BNDES (the resources are released as the projects move forward). With the capitalization, the Global Tiger Fund becomes a junior partner in the company.
Since the announcement of credit from BNDES, on Monday, shares of B2W climbed 7%, reaching R $ 30.66 yesterday. With the Tiger giving clear signs of stake in company, the paper fired 123% in 2014, the year high (Brazil Index 100), with subsequent adjustment of brokerages in the target price of the paper. "They came out of the choke and now this gives extra breath. The owners are telling the market: ' we're in the game, "said Sergio Nóia, Executive Director of the Brazilian Institute of retail Executives.
In its latest report, the team at UBS predicts profit ever in the fourth quarter of 2014. "Financial pressures should be greatly reduced [with casing] at a time when the operations gain strong momentum," said Gustavo Oliveira, of UBS. "Operating expenses at the company grow at a lower pace in function of operational improvement. In the medium term, [B2W] should initiate a cycle of positive results, "wrote Maria Paula Cantusio, an analyst at BB Investments.
The balance sheet figures from January to March show 33.2% high in revenue, with operating expenses rising 25.9% and net loss in fall of 5.7%.
Even within this change of perception, analysts have made reservations. B2W is dependent on capital for investments, because it is a sector that demand resources. And the company, created eight years ago, is still seen as a company under construction. This need of resources should remain high in the coming years. The sum of investments hit almost 12% of sales in 2013-the market considers it appropriate a percentage of 3%.
"It's not just investments in technology or distribution that have grown so much. Marketing costs have risen alarmingly for companies like B2W, "said Mariano de Faria, CEO of Vtex, company that provides services to companies in the area. "Great online retailers consume high volumes of case, because of the cost and financial outsourcing areas. Even with the strong investments, I find it hard to wait the turn of results so quickly, "said Roberto Wajnsztok, co-foundador of OriginV consulting. In the analysis of Oliveira, from UBS, one has to take into account that some investment decisions, such as acquisitions, made by B2W in 2013, are not "transformative effect" in the short term.
Still experts point out that the company plans to open seven more distribution centers by the end of 2015-and were three new in 2013. "The balance of stocks on the basis of this increase is expected to be a challenge for the company in the medium term," says Maria Paula, of BB. As more centres, the greater the risk of unwanted increase of inventories.
A worsening level of competition in the sector in the short term has also been considered by the meraco, since it can put pressure on profitability (gross margin fell from 24.4% of B2W from January to March 2013 to 24.2% this year). B2W wasn't the only one who resorted to new ways to capitalize on to win market. New dot com, the Pão de Açúcar group, announced in May the Union of its operations with CDiscount, retail company's Online Casino. The resulting company will receive about $ 2.5 billion on the Nasdaq Stock Exchange, technology groups in the us. The Free Market will issue $ 300 million in bonds abroad and more than half of the funds will be applied in Brazil.