VIIA3 net income should be worse and Ebitda stabilizes in the fourth quarter

method (VIIA3) should post a positive net result of R$17 million in the fourth quarter of 2021, which will be worse compared to the R$336 million profit reported in the same period of 2020.

Meanwhile, EBITDA should be R$557.33 million, which is practically stable compared to R$545 million in the same range from the previous year.

Forecasts are part of the Refinitiv consensus. It is expected among analysts that the outcome will continue to be affected by the work items, which, along with the rising cost of debt, will exacerbate the situation.

XP Investimentos indicates a similar dynamic to the immediate prior quarter, with weaker numbers likely.

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In the third quarter of last year, The company’s adjusted net income was 101 million Brazilian riyalsBut in the accounting result, the retailer’s loss was R$638 million.

According to the company, the result was affected by the work claims provisions of R$810 million. This did not sit well with the investors, Led Via’s (VIIA3) stock to fall 12.3% in the after-balance trading session.

Via .’s GMV (VIIA3) must recede

According to XP, the estimate is that total GMV will decrease by 5% in 2021 compared to 2020, due to poor performance of physical stores, as a result of reduced customer traffic, with a deteriorating macroeconomic scenario.

On the other hand, XP estimates that the online channel should show a GMV growth of +21% YoY.

For the corporation, in terms of profitability, “We expect gross margin to represent a sequential contraction in the quarterly comparison (-1.5 percentage points), while Ebitda margin should decline by 1.3 percentage points annually, under pressure from general and administrative expenses.”

Inflation creates challenges for the sector

Among the macroeconomic factors that are detrimental to the actions of the retail sector is the inflationary scenario, which is associated with a relatively high unemployment rate.

The impact of food inflation and high electricity and fuel prices on the monthly income of low-income families.

This year, VIIA3 shares are down 35%, while in the 12-month period, total equity losses are 70.5%.

Other retailers are also experiencing significant drops in the value of their shares, as reported by Magazine Luiza.MGLU3), whose shares are down 16% in the year and 73% in 12 months.

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