Announcement • Jun 02
Atacadão S.A.(BOVESPA:CRFB3) dropped from FTSE All-World Index (USD) Atacadão S.A.(BOVESPA:CRFB3) dropped from FTSE All-World Index (USD) Announcement • Apr 14
Atacadão S.A. to Report Q1, 2025 Results on May 06, 2025 Atacadão S.A. announced that they will report Q1, 2025 results After-Market on May 06, 2025 Announcement • Mar 19
Atacadão S.A., Annual General Meeting, Apr 17, 2025 Atacadão S.A., Annual General Meeting, Apr 17, 2025. Announcement • Feb 19
Atacadão S.A. to Report Q4, 2024 Results on Feb 18, 2025 Atacadão S.A. announced that they will report Q4, 2024 results After-Market on Feb 18, 2025 Price Target Changed • Jan 30
Price target decreased by 9.3% to R$9.09 Down from R$10.02, the current price target is an average from 14 analysts. New target price is 45% above last closing price of R$6.28. Stock is down 42% over the past year. The company is forecast to post earnings per share of R$0.48 next year compared to a net loss per share of R$0.38 last year. New Risk • Nov 04
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Brazilian stocks, typically moving 6.5% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.7x net interest cover). Minor Risks Dividend is not well covered by earnings (dividend per share is over 5x earnings per share). Share price has been volatile over the past 3 months (6.5% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.02% net profit margin). Reported Earnings • Nov 02
Third quarter 2024 earnings released: EPS: R$0.10 (vs R$0.063 in 3Q 2023) Third quarter 2024 results: EPS: R$0.10 (up from R$0.063 in 3Q 2023). Revenue: R$28.4b (up 5.1% from 3Q 2023). Net income: R$221.0m (up 67% from 3Q 2023). Profit margin: 0.8% (up from 0.5% in 3Q 2023). Revenue is forecast to grow 6.0% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Consumer Retailing industry in Brazil. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 73 percentage points per year, which is a significant difference in performance. Announcement • Oct 23
Atacadão S.A. to Report Q3, 2024 Results on Oct 31, 2024 Atacadão S.A. announced that they will report Q3, 2024 results After-Market on Oct 31, 2024 Price Target Changed • Oct 16
Price target decreased by 8.2% to R$11.52 Down from R$12.56, the current price target is an average from 14 analysts. New target price is 55% above last closing price of R$7.41. Stock is down 18% over the past year. The company is forecast to post earnings per share of R$0.52 next year compared to a net loss per share of R$0.38 last year. Price Target Changed • Oct 10
Price target decreased by 7.7% to R$12.25 Down from R$13.28, the current price target is an average from 13 analysts. New target price is 63% above last closing price of R$7.53. Stock is down 23% over the past year. The company is forecast to post earnings per share of R$0.53 next year compared to a net loss per share of R$0.38 last year. Reported Earnings • Jul 23
Second quarter 2024 earnings: EPS and revenues exceed analyst expectations Second quarter 2024 results: EPS: R$0.16 (up from R$0.12 loss in 2Q 2023). Revenue: R$29.6b (up 7.8% from 2Q 2023). Net income: R$330.0m (up R$579.0m from 2Q 2023). Profit margin: 1.1% (up from net loss in 2Q 2023). Revenue exceeded analyst estimates by 4.7%. Earnings per share (EPS) also surpassed analyst estimates by 82%. Revenue is forecast to grow 6.9% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Consumer Retailing industry in Brazil. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 68 percentage points per year, which is a significant difference in performance. Announcement • Jul 23
Atacadão S.A. to Report Q2, 2024 Results on Jul 22, 2024 Atacadão S.A. announced that they will report Q2, 2024 results After-Market on Jul 22, 2024 Announcement • May 09
Atacadão S.A. to Report Q1, 2024 Results on May 07, 2024 Atacadão S.A. announced that they will report Q1, 2024 results After-Market on May 07, 2024 Reported Earnings • May 08
First quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2024 results: R$0.02 loss per share (improved from R$0.054 loss in 1Q 2023). Revenue: R$26.4b (up 2.2% from 1Q 2023). Net income: R$39.0m (up R$152.0m from 1Q 2023). Profit margin: 0.1% (up from net loss in 1Q 2023). Revenue exceeded analyst estimates by 2.1%. Earnings per share (EPS) missed analyst estimates. Revenue is forecast to grow 6.7% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Consumer Retailing industry in Brazil. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 55 percentage points per year, which is a significant difference in performance. Buy Or Sell Opportunity • Mar 12
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 2.7% to R$12.00. The fair value is estimated to be R$9.98, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last 3 years. Meanwhile, the company became loss making. Buy Or Sell Opportunity • Feb 22
Now 24% overvalued after recent price rise Over the last 90 days, the stock has risen 9.5% to R$12.54. The fair value is estimated to be R$10.10, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last 3 years. Meanwhile, the company became loss making. New Risk • Feb 21
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Brazilian stocks, typically moving 6.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by earnings (418% payout ratio). Share price has been volatile over the past 3 months (6.1% average weekly change). Reported Earnings • Feb 20
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: R$0.38 loss per share (down from R$0.85 profit in FY 2022). Revenue: R$109.9b (up 6.8% from FY 2022). Net loss: R$795.0m (down 146% from profit in FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates. Revenue is forecast to grow 7.2% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Consumer Retailing industry in Brazil. Over the last 3 years on average, earnings per share has fallen by 59% per year but the company’s share price has only fallen by 16% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Feb 19
Consensus EPS estimates fall by 22% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate fell from R$0.161 to R$0.127 per share. Revenue forecast steady at R$109.9b. Net income forecast to grow 470% next year vs 28% growth forecast for Consumer Retailing industry in Brazil. Consensus price target reaffirmed at R$14.16. Share price fell 7.9% to R$10.84 over the past week. Major Estimate Revision • Feb 14
Consensus EPS estimates fall by 17% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate fell from R$0.161 to R$0.134 per share. Revenue forecast steady at R$110.0b. Net income forecast to grow 483% next year vs 31% growth forecast for Consumer Retailing industry in Brazil. Consensus price target broadly unchanged at R$14.13. Share price fell 2.9% to R$11.54 over the past week. Buy Or Sell Opportunity • Feb 06
Now 23% overvalued after recent price rise Over the last 90 days, the stock has risen 4.1% to R$11.39. The fair value is estimated to be R$9.28, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 18% over the last 3 years. Earnings per share has declined by 39%. For the next 3 years, revenue is forecast to grow by 7.6% per annum. Earnings are also forecast to grow by 49% per annum over the same time period. Announcement • Jan 13
Atacadão S.A., Annual General Meeting, Apr 16, 2024 Atacadão S.A., Annual General Meeting, Apr 16, 2024. Valuation Update With 7 Day Price Move • Nov 06
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to R$10.15, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 13x in the Consumer Retailing industry in Brazil. Total loss to shareholders of 45% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at R$9.38 per share. Major Estimate Revision • Oct 26
Consensus EPS estimates fall by 32% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate fell from R$0.256 to R$0.174 per share. Revenue forecast steady at R$112.9b. Net income forecast to grow 181% next year vs 33% growth forecast for Consumer Retailing industry in Brazil. Consensus price target down from R$13.77 to R$13.32. Share price fell 4.5% to R$8.62 over the past week. Major Estimate Revision • Oct 10
Consensus EPS estimates fall by 17% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from R$115.4b to R$113.5b. EPS estimate also fell from R$0.318 per share to R$0.264 per share. Net income forecast to grow 217% next year vs 31% growth forecast for Consumer Retailing industry in Brazil. Consensus price target down from R$14.35 to R$14.04. Share price rose 8.5% to R$9.22 over the past week. Valuation Update With 7 Day Price Move • Sep 21
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to R$8.90, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 14x in the Consumer Retailing industry in Brazil. Total loss to shareholders of 54% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at R$12.58 per share. Major Estimate Revision • Sep 17
Consensus EPS estimates fall by 14% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate fell from R$0.526 to R$0.45 per share. Revenue forecast steady at R$117.9b. Net income forecast to grow 288% next year vs 38% growth forecast for Consumer Retailing industry in Brazil. Consensus price target broadly unchanged at R$14.85. Share price fell 2.6% to R$9.91 over the past week. Announcement • Aug 18
Barzel Properties completed the acquisition of Four distribution centres and five stores from Atacadão S.A. (BOVESPA:CRFB3). Barzel Properties agreed to acquire Four distribution centres and five stores from Atacadão S.A. (BOVESPA:CRFB3) for valuation of BRL 1.2 billion in May 2023. The assets will be leased back to Carrefour for 20 years, with the option to renew for additional five-year periods.
Barzel Properties completed the acquisition of Four distribution centres and five stores from Atacadão S.A. (BOVESPA:CRFB3) on August 17, 2023. Reported Earnings • Jul 28
Second quarter 2023 earnings released Second quarter 2023 results: Revenue: R$27.5b (up 8.7% from 2Q 2022). Net loss: R$249.0m (down 140% from profit in 2Q 2022). Revenue is forecast to grow 9.5% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Consumer Retailing industry in Brazil. Over the last 3 years on average, earnings per share has fallen by 13% per year whereas the company’s share price has fallen by 18% per year. Major Estimate Revision • Jul 26
Consensus EPS estimates fall by 22% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate fell from R$0.639 to R$0.496 per share. Revenue forecast steady at R$117.4b. Net income forecast to grow 3.3% next year vs 20% growth forecast for Consumer Retailing industry in Brazil. Consensus price target down from R$15.62 to R$14.74. Share price rose 16% to R$12.43 over the past week. Valuation Update With 7 Day Price Move • Jun 07
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to R$10.98, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 12x in the Consumer Retailing industry in Brazil. Total loss to shareholders of 34% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at R$18.14 per share. Major Estimate Revision • May 19
Consensus EPS estimates fall by 12% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate fell from R$0.821 to R$0.725 per share. Revenue forecast steady at R$121.0b. Net income forecast to grow 63% next year vs 41% growth forecast for Consumer Retailing industry in Brazil. Consensus price target down from R$17.00 to R$16.36. Share price was steady at R$9.91 over the past week. Price Target Changed • May 11
Price target decreased by 7.2% to R$17.00 Down from R$18.32, the current price target is an average from 14 analysts. New target price is 74% above last closing price of R$9.78. Stock is down 50% over the past year. The company is forecast to post earnings per share of R$1.06 for next year compared to R$0.85 last year. Price Target Changed • May 03
Price target decreased by 7.2% to R$17.71 Down from R$19.09, the current price target is an average from 14 analysts. New target price is 87% above last closing price of R$9.46. Stock is down 54% over the past year. The company is forecast to post earnings per share of R$0.88 for next year compared to R$0.85 last year. Reported Earnings • May 03
First quarter 2023 earnings released: R$0.05 loss per share (vs R$0.19 profit in 1Q 2022) First quarter 2023 results: R$0.05 loss per share (down from R$0.19 profit in 1Q 2022). Revenue: R$25.8b (up 29% from 1Q 2022). Net loss: R$113.0m (down 131% from profit in 1Q 2022). Revenue is forecast to grow 9.6% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Consumer Retailing industry in Brazil. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has fallen by 22% per year, which means it is performing significantly worse than earnings. Reported Earnings • Feb 14
Full year 2022 earnings released Full year 2022 results: Revenue: R$102.9b (up 32% from FY 2021). Net income: R$1.74b (down 45% from FY 2021). Profit margin: 1.7% (down from 4.0% in FY 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Consumer Retailing industry in Brazil. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. Announcement • Feb 14
Atacadão S.A. to Report Q2, 2023 Results on Jul 25, 2023 Atacadão S.A. announced that they will report Q2, 2023 results on Jul 25, 2023 Announcement • Feb 07
Atacadão S.A. to Report Q1, 2023 Results on May 10, 2023 Atacadão S.A. announced that they will report Q1, 2023 results on May 10, 2023 Announcement • Jan 17
Atacadão S.A. to Report Q4, 2022 Results on Feb 07, 2023 Atacadão S.A. announced that they will report Q4, 2022 results on Feb 07, 2023 Announcement • Jan 14
Atacadão S.A., Annual General Meeting, Apr 13, 2023 Atacadão S.A., Annual General Meeting, Apr 13, 2023. Board Change • Nov 16
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 10 experienced directors. No highly experienced directors. 3 independent directors (7 non-independent directors). Effective Independent Member of the Board of Directors Luiz Fernando Fleury was the last independent director to join the board, commencing their role in 2017. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Nov 12
Third quarter 2022 earnings released Third quarter 2022 results: Revenue: R$27.7b (up 40% from 3Q 2021). Net income: R$323.0m (down 49% from 3Q 2021). Profit margin: 1.2% (down from 3.2% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Consumer Retailing industry in Brazil. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Nov 11
Investor sentiment deteriorated over the past week After last week's 17% share price decline to R$15.90, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 16x in the Consumer Retailing industry in Brazil. Total loss to shareholders of 5.8% over the past three years. Announcement • Oct 29
Atacadão S.A. to Report Q3, 2022 Results on Nov 09, 2022 Atacadão S.A. announced that they will report Q3, 2022 results After-Market on Nov 09, 2022 Reported Earnings • Jul 28
Second quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2022 results: EPS: R$0.31 (up from R$0.29 in 2Q 2021). Revenue: R$25.3b (up 35% from 2Q 2021). Net income: R$620.0m (up 9.5% from 2Q 2021). Profit margin: 2.5% (down from 3.0% in 2Q 2021). Revenue exceeded analyst estimates by 8.4%. Earnings per share (EPS) missed analyst estimates by 100%. Over the next year, revenue is forecast to grow 27%, compared to a 27% growth forecast for the industry in Brazil. Over the last 3 years on average, earnings per share has increased by 34% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Price Target Changed • Jun 29
Price target decreased to R$22.75 Down from R$24.70, the current price target is an average from 4 analysts. New target price is 37% above last closing price of R$16.55. Stock is down 21% over the past year. The company is forecast to post earnings per share of R$1.04 for next year compared to R$1.58 last year. Major Estimate Revision • Jun 17
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast increased from R$86.9b to R$96.4b. EPS estimate fell from R$1.10 to R$1.02. Net income forecast to shrink 13% next year vs 34% growth forecast for Consumer Retailing industry in Brazil . Consensus price target broadly unchanged at R$24.55. Share price fell 7.8% to R$16.79 over the past week. Announcement • Jun 09
Atacadão S.A. (BOVESPA:CRFB3) completed the acquisition of Grupo Big Brasil S.A. from Advent International Corporation and Walmart Inc. (NYSE:WMT). Atacadão S.A. (BOVESPA:CRFB3) entered into an agreement to acquire Grupo Big Brasil S.A. from Advent International Corporation and Walmart Inc. (NYSE:WMT) for BRL 7.5 billion on March 24, 2021. The consideration will comprise of a cash payment of BRL 5.25 billion wherein BRL 900 million will be paid upfront and BRL 4.35 billion at closing; BRL 2.25 billion in shares with a 6-month lock-up wherein approximately 117 million shares will be issued at BRL 19.26 per share; and an additional cash payment will be made based on share appreciation. Upon completion of the transaction, Carrefour Group will own around 67.7% of Atacadão, Península Participações will own 7.2%, and Advent International and Walmart, through affiliates, will own 5.6% combined. The cash portion of BRL 5.25 billion will be financed through a combination of available cash & debt to be raised before closing. Atacadão and Grupo Big Brasil will be combined and will have gross sales of about BRL 100 billion, operate 876 stores, and employ around 137,000 people. The transaction remains subject to the authorization of the Brazilian antitrust authority (CADE), to the approval of Atacadão’s shareholders, as well as other customary closing conditions. As of January 25, 2022, Brazilian antitrust watchdog CADE has initially recommended approval of acquisition of Grupo BIG Brasil, but conditioned the deal to the divestment of some retail units. As of May 20, 2022, Atacadão’s shareholders has approved the acquisition. As of May 25, 2022, the transaction has been approved by Brazil's anti trust coincil Conselho Administrativo de Defesa Economica (CADE). The completion of the transaction is expected in 2022. The transaction is expected to generate very significant annual synergies of approximately BRL 1.7 billion in 3 years for Carrefour shareholders. EPS accretion is expected from year 1 after closing.
Sergio J. Galvis, Werner Federico Ahlers and Mehdi Ansari of Sullivan & Cromwell LLP acted as legal advisors to Atacadão S.A. Credit Suisse acted as exclusive financial advisor to Grupo BIG.
Atacadão S.A. (BOVESPA:CRFB3) completed the acquisition of Grupo Big Brasil S.A. from Advent International Corporation and Walmart Inc. (NYSE:WMT) on June 7, 2022. Major Estimate Revision • May 24
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast increased from R$82.9b to R$85.0b. EPS estimate fell from R$1.19 to R$1.00 per share. Net income forecast to shrink 15% next year vs 32% growth forecast for Consumer Retailing industry in Brazil . Consensus price target broadly unchanged at R$24.36. Share price was steady at R$19.49 over the past week. Reported Earnings • May 06
First quarter 2022 earnings: EPS exceeds analyst expectations First quarter 2022 results: EPS: R$0.19 (down from R$0.47 in 1Q 2021). Revenue: R$20.0b (up 16% from 1Q 2021). Net income: R$370.0m (down 60% from 1Q 2021). Profit margin: 1.8% (down from 5.3% in 1Q 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 8.4%. Over the next year, revenue is forecast to grow 9.6%, compared to a 18% growth forecast for the industry in Brazil. Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Board Change • Apr 27
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 10 experienced directors. No highly experienced directors. 3 independent directors (7 non-independent directors). Effective Independent Member of the Board of Directors Luiz Fernando Fleury was the last independent director to join the board, commencing their role in 2017. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Announcement • Apr 20
Atacadão S.A. to Report Q1, 2022 Results on May 05, 2022 Atacadão S.A. announced that they will report Q1, 2022 results After-Market on May 05, 2022 Announcement • Feb 17
Atacadão S.A. to Report Q4, 2021 Results on Feb 15, 2022 Atacadão S.A. announced that they will report Q4, 2021 results on Feb 15, 2022 Announcement • Jan 01
Atacadão S.A.(BOVESPA:CRFB3) dropped from Brazil Valor BM&FBOVESPA Index Atacadão S.A. has been removed from Brazil Valor BM&FBOVESPA Index. Reported Earnings • Nov 12
Third quarter 2021 earnings released The company reported a soft third quarter result with weaker earnings and profit margins, although revenues improved. Third quarter 2021 results: Revenue: R$19.9b (up 9.0% from 3Q 2020). Net income: R$638.0m (down 7.1% from 3Q 2020). Profit margin: 3.2% (down from 3.8% in 3Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Reported Earnings • Jul 31
Second quarter 2021 earnings released: EPS R$0.28 (vs R$0.35 in 2Q 2020) The company reported a soft second quarter result with weaker earnings and profit margins, although revenues improved. Second quarter 2021 results: Revenue: R$18.7b (up 12% from 2Q 2020). Net income: R$566.0m (down 18% from 2Q 2020). Profit margin: 3.0% (down from 4.1% in 2Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Announcement • Jun 10
CSHG Renda Urbana Fundo Investimento Imobilirio - FII (BOVESPA:HGRU11) a fund managed by Credit Suisse Hedging-Griffo Corretora de Valores S/A, Investment Arm agreed to acquire Ten Makro stores in Brazil from Atacadão S.A. for approximately BRL 200 million. CSHG Renda Urbana Fundo Investimento Imobilirio - FII (BOVESPA:HGRU11) a fund managed by Credit Suisse Hedging-Griffo Corretora de Valores S/A, Investment Arm agreed to acquire Ten Makro stores in Brazil from Atacadão S.A. for approximately BRL 200 million on June 8, 2021. In May 2021 the CSHG fund paid an initial BRL 14.5 million to Atacadão. The conclusion of the operation depends on technical diligence and compliance matters, and approval from antitrust body Cade. Reported Earnings • May 15
First quarter 2021 earnings released: EPS R$0.47 (vs R$0.18 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: R$17.3b (up 13% from 1Q 2020). Net income: R$923.0m (up 154% from 1Q 2020). Profit margin: 5.3% (up from 2.4% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Mar 26
Investor sentiment improved over the past week After last week's 18% share price gain to R$22.14, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 21x in the Consumer Retailing industry in Brazil. Total returns to shareholders of 55% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at R$18.31 per share. Reported Earnings • Feb 20
Full year 2020 earnings released The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: R$71.2b (up 19% from FY 2019). Net income: R$2.67b (up 164% from FY 2019). Profit margin: 3.8% (up from 1.7% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has increased by 12% per year, which means it is well ahead of earnings. 