Iguatemi (IGTA3) reversed profit and lost R$58 million in the third quarter, due to lower financial income

Sao Paulo – Iguatemi (IGTA3) reported a loss of R$57.957 million in the third quarter of 2021, reflecting a gain of R$61,566 million in the same period in 2020.

In explaining the net result, the company highlights the line of financial results, which showed losses of 211,533 million Brazilian reais, an increase of 913% over the figure announced in the previous year, which was negative by 20.869 million Brazilian reais.

He wrote that “a large part of the negative result is due to the marketing of Infracommerce shares,” noting that these shares decreased in value by 28.5%, resulting in a negative result of 143.0 million Rls in financial terms.

He added, “If we exclude the impact of trade in infrastructure, the financial result will be negative 75.2 million Brazilian reais.” Moreover, financial expenses increased by 43.1%, as a result of the higher level of the company’s total indebtedness and the increase in SELIC compared to the same period in 2019.

Without the impact of the variance in Infracommerce’s share price, the result would have been a net profit of R$32 million in the third quarter, 48% lower than the profit for the same period last year, the company added.

Igwatami working on the rise

Despite the deteriorating net result, the company highlighted the operational performance as vaccination progressed and circulation restrictions eased, to contain the progress of Covid-19, which had a positive impact on several items on the balance sheet.

Earnings before interest, taxes, depreciation and amortization (Ebitda, its English acronym) grew 14.2% in the third quarter, to R$151.453 million. Ebitda’s margin in turn lost 1.6 percentage points to 72.2%.

Net revenue also grew, reaching R$ 209.644 million, which is an increase of 16.6% over R$ 179.792 million in the previous year..

Gross leasable area (GLA) was nearly stable with a slight 0.2% decrease in any variable.

Total sales were R$3.326 billion, up 82.7% over what was measured in 3TRI20, which was R$1.820 billion in sales.

Same-store sales (SSS) grew 7.8% and same-area sales (SAS) 4.4% in the quarter compared to the third quarter of 2019, with 10 of the 16 malls growing during 2019.”

Same-store rent grew by 22.9% and same-area rent (SAR) grew by 11.9% in Q3 of 21 compared to Q3 of 2019.

Better performance chips

The company explains that “the sectors with the best sales performance in the quarter were fashion, footwear, leather and food operations, which were impacted by operations that operate 100% of the time and also the largest allowed flow capacity in malls.”

Resilience and trade resumption also contributed to a net lag of 2.1%, which is 11.4 percentage points below 3TRI20, “although still above pre-pandemic levels.”

A downward trend “shows that we have been successful in receiving overdue payments in recent months, as well as demonstrating an ability to receive current rents.”

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