Magazine Luiza has better Q1

The network command Magazine Luiza said yesterday, in a teleconference with analysts, that the balance of results for the first quarter of 2014 was the best for the period in the history of the company, according to Marcelo Silva, Chief Executive Officer of the retailer. Is a change of tone from the command after period of adjustment.
In the past two years, the company faced a process of restructuring, after acquisitions affecting numbers, and also with the increase in bad debt losses. From 2011, the company decreased expenses, credit granting policy changed, improved ways to set prices, among other actions.
The network's net profit rose from R $ 800 thousand to R $ 20,5 million from the first quarter of 2013 for the first quarter of this year. Gross margin increased from 28.2% to 27.3% in the same range. The profit margin before interest taxes, depreciation and amortization (Ebitda, the acronym in English) rose from 3.6% to 5.3%. The actions of the network had appreciation of 9.61% in trading yesterday.
In relation to Ebitda margin, Silva stated that the search company "for years very close" the rate attained in 2010, when the index peaked at 7%, but this is not an estimate. "This is only one level to achieve at some point reasonable".
In yesterday's conference call, analysts questioned whether the network would be lowering prices to win market. The company has denied. "The Magazine Luiza is a competitive network, but does not have the low price model every day," said Silva.