GROUP
Casas Bahia Group completes the first year of the Transformation Plan with consistent deliveries, and presents results for Q2'24, with the best half- yearly free cash flow in the last 5 years, sequential improvement in profitability and completion of debt reprofiling
Q2'24 Earnings Highlights
- Free cash flow of R$ 92 million in Q2'24, and R$ (84) million in 6M24 vs. R$ (307) million in 6M23
- Cash variation of R$ (21) million in Q2'24 vs. R$ (760) million in Q2'23
- Liquidity, including receivables, totaled R$ 2.9 billion in Q2'24, stable vs. Q1'24
- Inventory reduction of R$ 1.4 billion (reduction of 15 days) in Q2'24 vs. Q2'23 and stable vs. Q1'24
- Reduction of 9.1% in SG&A, of which 12.7% in sales expenses vs. Q2'23
- Gross margin of 30.7% in Q2'24 vs. 29.2% in Q2'23, an improvement of +150 bps
- Adjusted EBITDA margin of 7.0% vs. 6.3% in Q2'23, an improvement of 70 bps
- Positive EBT of R$43 million vs. R$(843) million in Q2'23
- Net Income of R$37 million vs. R$(492) million in Q2'23
- Net tax monetization of R$357 million in Q2'24 vs. R$218 million in Q2'23, up +64%
- CDCI reaches record share in online channel of 7.9% and 17.8% consolidated
- Delinquency (over 90 days) was 8.5%, better 50 bps vs. Q1'24 and 60 bps vs. Q2'23
Income Statement Q2'24 x Q2'23 and Cash Flow Q2'24 and 6M24
(R$ Million) | Q1'24 | Q2'24 | 6M24 |
Profit (loss) for the period | (261) | 37 | (224) |
Cash profit after adjustments | 689 | 725 | 1.414 |
Net cash generated from operating activities | 124 | 424 | 548 |
Net cash generated from leasing activities | (252) | (255) | (507) |
Net cash generated from investing activities | (48) | (77) | (125) |
Free cash flow | (176) | 92 | (84) |
Net borrowings | 23 | 338 | 361 |
Interest payments | (525) | (451) | (976) |
Net cash generated from financing activities | (502) | (113) | (615) |
Beginning balance of cash and cash equivalents | 3.578 | 2.900 | 3.578 |
Ending balance of cash and cash equivalents | 2.900 | 2.879 | 2.879 |
Cash variation | (678) | (21) | (699) |
Free Cash Flow
(R$ million)
-307-84
-1.493
-3.269-3.271
6M20 | 6M21 | 6M22 | 6M23 | 6M24 |
1
GROUP
The first year of the Transformation Plan has consistent deliveries of cost reduction, expenses and operational efficiency, and begins the 2nd phase with selective investments to grow and strengthen key categories
Operation stabilization: cash generation and profitability for sustainable growth after 2025
Focus on the core, on profitable categories and channels and reduction of costs and expenses Strict discipline in capital allocation and return
From the two fronts that make up the plan, operational levers and optimization of the capital structure, the main deliverables after the 1st year are as follows:
• Inventories: inventory level at 82 days vs. 112 days in Q1'23 and vs. 97 days in Q2'23 (R$1.4 billion lower), with better inventory quality. Inventory aging up to 90 days was 92% vs. 77% in Q2'23.
• Assortment Migration: there was migration of 23 subcategories from the 1P channel to the 3P channel, which has already shown a reaction, with GMV growing 5.1% and revenue 7.6% vs. 6M23.
• Gross Margin: reached 30.7% in Q2'23, 150 bps higher than Q2'23.
- Penetration of services: the penetration of revenue from financial services and solutions in relation to net revenue
increased to 16% in Q2'23 vs. 12% in Q1'23, a gain of 400 bps
• Personnel expenses: reduction of 9.5% in 6M24 vs. 6M23, equivalent to +R$ 141 million. 20% reduction in the workforce (+10 thousand positions) and 40% reduction in leadership.
• Footprint optimization: we closed a total of 60 stores within the scope of the Plan, 9 DCs were restructured, and 4 were closed.
• Capital Structure and Liability Management: (i) reprofiling of total debt of R$4.1 billion, increasing the average term from 22 months to 72 months and reducing the average cost by (150 bps)
• Monetization of tax credits: net monetization of R$560 million in 6M24 vs. R$206 million in 6M23. Reduction of R$1.2 billion in the stock of recoverable taxes yoy.
• Bartira's profit and banQi's breakeven: within the scope of the Transformation Plan, in 6M24 Bartira, our furniture factory, reported a profit and banQi, our Fintech, maintained a result close to breakeven.
Execution of the Plan advances with progress on initiatives, which total R$1.6-1.8billion in opportunities:
Transformation Plan - stages:
June/23 - March/24: focus on short-term cash generation and changes in the management model - prioritization of margins vs. GMV and stabilization
April/24 - May/25: selective investments focused on strengthening the core and bringing in revenue - selective bets
Second semester of 2025+: strategic review with a focus on expanding and improving the experience of physical and online channels and investing in critical skills - acceleration and new momentum
2
GROUP | |||||||
Omnichannel | |||||||
R$ million | Q2'24 | Q2'23 | % | 6M24 | 6M23 | % | |
Total GMV | 9.715 | 11.008 | (11,8%) | 19.402 | 21.959 | (11,6%) | |
GMV Omnichannel (1P) | 8.238 | 9.542 | (13,7%) | 16.323 | 19.030 | (14,2%) | |
GVM Physical Stores | 5.941 | 6.044 | (1,7%) | 11.356 | 12.111 | (6,2%) | |
GMV (1P Online) | 2.296 | 3.498 | (34,3%) | 4.967 | 6.919 | (28,2%) | |
GMV Omnichannel (3P) | 1.477 | 1.467 | 0,7% | 3.079 | 2.929 | 5,1% |
Total GMV in relation to Q2'23 decreased by (11.8%). Omnichannel GMV in 1P was lower by (13.7%), made up of a reduction of (1.7%) in brick-and-mortar stores and (34.3%) in online. On the other hand, 3P GMV grew by 0.7% in the period and by 5.1% in 6M24. E-commerce, 1P online + 3P totaled R$ 3.8 billion and was lower by 24.0% vs. Q2'23.
Gross Revenue Performance by Channel
In Q1'24, consolidated gross revenue fell by (14.1%) compared to Q2'23, to R$ 7.7 billion. The variation is mainly explained by the reduction in online sales revenue, despite the 2.2% growth in marketplace revenue.
Brick-and-mortar stores - GMV and Gross Revenue
The gross GMV of brick-and-mortar stores was R$ 5.9 billion, stable despite the reduction in categories, and gross revenue was R$ 5.4 billion (a reduction of 2.5%). The month-on-month performance of the stores still has a different basis of comparison and therefore reflects the change in mix with a focus on profitability, a more restrictive demand scenario, lower availability of credit for consumers and store closures.
Same-store performance (GMV) was (0.1%) in Q2'24, positive in June, and grew by a high single digit in July, following a clear recovery trend (1st graph)
The margin (profitability) initiatives, despite the drop in revenue, enabled our brick-and-mortar stores to keep same-store sales practically stable, despite the reduction in categories, and to achieve better profitability ratios. An example of this is that more than 50% of the total number of stores showed an increase in margin, with 12% growing by more than 5 bps (2nd graph).
Throughout the quarter, in line with the Transformation Plan, we closed 3 stores for underperforming, closing Q2'24 with 1,073 stores. In the Plan, we closed a total of 60 stores.
Monthly SSS - 2024
an | feb | mar | apr | may | un | ul |
ric -and-mortar stores margin
12 | |
100 | 42 |
4 | |
Q2 23 | Q2 24 |
Stable Improvement | Improvement above 5p.p. |
1P and 3P ONLINE - GMV and Gross Revenue
1P online GMV fell by (34.3%) compared to Q2'23, reaching R$ 2.3 billion, as a result of: (i) lower investment in the B2B channel (from 35% of 1P online GMV to 24%) and other media (we prioritized more profitable partnerships, focusing on results), (ii) adjustment of the product mix on a non-comparable basis and (iii) a more restrictive scenario for online purchases. Even in this context, we maintained our strength in the core categories, in line with our strategic positioning.
3P omnichannel GMV grew 0.7% in Q224 (R$ 1.5 billion) and revenue gains of +2.0% to R$ 186 million, GMV growth of 5.1% in 6M24 with revenue growing 7.6%, the result of the search for greater profitability and a better experience for customers and sellers through the greater number of services offered on our platforms, such as logistics and credit. We ended the quarter with a take rate of 12.6%, +20 bps vs. Q2'23.
3
GROUP
Opening of Gross Revenue
Gross merchandise revenue, whose performance was pressured mainly by the drop in GMV in 1P online, showed a variation of (17%). Revenue from services grew by 20%, as a result of better sales penetration in insurance, extended warranty, assembly and freight. Revenue from financial solutions remained stable. However, the penetration of financial services and solutions in relation to net revenue increased to 16% in Q2'24 vs. 12% in Q1'23 (an increase of 400 bps), reflecting the initiatives to increase revenue under the Transformation Plan.
Our installment plan continues to be an important tool for customer loyalty and a competitive advantage, with a 17.8% share of consolidated gross revenue (an increase of 520bps). We also highlight the growth in cash payments, mainly due to the greater attractiveness of payments via PIX. Along with the installment plan, we had a 6.5 bps increase in payment methods that most favor the Company's results. Additionally, there was a 40 bps increase in the share of Co-branded cards.
Gross Profit
R$ million | Q2'24 | Q2'23 | % | 6M24 | 6M23 | % |
Gross Profit | 1.992 | 2.184 | (8,8%) | 3.894 | 4.497 | (13,4%) |
% Gross Margin | 30,7% | 29,2% | 150bps | 30,4% | 30,3% | 10bps |
In Q2'24, gross profit was R$ 2.0 billion, with a gross margin of 30.7%, a gain of 150 bps vs. Q2'23 and sequential improvement of 70 bps vs. Q1'24. Despite the drop in net sales, the healthy margin, already at historic levels, is explained by the better combination of the product and service mix and the quality of inventories (aging), the result of more accurate purchases and profitable sales, especially after the reduction of older, non-core inventories, in line with the Transformation Plan initiative.
Selling, General and Administrative Expenses
R$ million | Q2'24 | Q2'23 | % | 6M24 | 6M23 | % |
SG&A | (1.612) | (1.773) | (9,1%) | (3.187) | (3.476) | (8,3%) |
% Net Revenue | (24,9%) | (23,7%) | (120bps) | (24,8%) | (23,4%) | (140bps) |
Selling, general and administrative expenses in Q2'24 fell by (9.1%) y/y and increased in relation to net revenue (24.9%) by 120 bps given the fall in revenue. The lower expenses are explained by the (12.7%) reduction in sales expenses, with the emphasis on the reduction in personnel (4.0%), the reduction in third-party services expenses (15.0%), as well as an improvement in the containment of labor expenses by (17.4%).
Adjusted EBITDA
R$ million | Q2'24 | Q2'23 | % | 6M24 | 6M23 | % |
Adjusted EBITDA | 452 | 469 | (3,5%) | 839 | 1.143 | (38,6%) |
% Adjusted Margin EBITDA | 7,0% | 6,3% | 70bps | 6,5% | 7,7% | (120bps) |
Adjusted EBITDA reached R$452 million in Q2'24 and a margin of 7.0%, 70 bps higher than in Q2'23, despite a very challenging market scenario. Sequentially, the margin in Q2'24 is the highest in 12 months and is on track for gradual, continuous growth with the prospect of improved growth in sales channels.
4
GROUP
Financial Result
In Q2'24, the net financial result was R$ (42) million, (95%) lower than in Q2'23 and 1,010 bps better as a percentage of Net Revenue (0.6%). The main positive factor in the financial result was a non-recurring positive R$ 637 million, arising from the effect of debt reprofiling, according to the rules of CPC 48. There is no cash gain and this accounting gain will be reversed over the term of the new debenture issue. On a recurring basis, in the period there was a reduction in debt interest expenses and a substantial reduction in expenses with discounting receivables. In 6M24, compared to 6M23, financial expenses reduced by (67.5%).
Net Profit
R$ million | Q2'24 | Q2'23 | % | 6M24 | 6M23 | % |
EBT | 43 | (843) | n/a | (459) | (1.396) | (67,1%) |
% Net Revenue | 0,7% | (11,3%) | 1200bps | (3,6%) | (9,4%) | 580bps |
Income Tax & Social Contribution | (6) | 351 | n/a | 235 | 607 | (61,3%) |
Net Income (Loss) | 37 | (492) | n/a | (224) | (789) | (71,6%) |
% Net Margin | 0,6% | (6,6%) | 720bps | (1,7%) | (5,3%) | 360bps |
EBIT was R$43 million in the quarter due to the efficiency initiatives of the Transformation Plan and the effect of the debt modification within the scope of the reprofiling, despite the market performance and the decline in sales, evolving vs. Q2'23. Net income was R$37 million vs. R$(492) million in Q2'23, with a net margin of 0.6% in the quarter, evolving 720 bps. compared to Q2'23. Excluding the amount of the debt modification, EBIT and Net Income (Loss) would be R$(594) million and R$(384) million, respectively, still 30% and 22% better vs. Q2'23, respectively.
Financial Cycle
We closed the inventory in Q2'24 with a reduction of R$ 1.4 billion (15 days) in relation to Q2'23 and stable vs. Q1'24. The variation is the result of the reduction of older stocks addressed in the Transformation Plan and not the recovery, which brought the Company a higher quality inventory.
5
GROUP
Capital Structure
Our gross debt was R$ 3.9 billion term (excluding CDCI and supplier agreement liabilities) 90% of which was long-term and with a reducing effect of the debt reprofiling, in accordance with the rules of CPC 48. There is no cash gain and this accounting gain will be reversed over the term of the new debenture issue. To understand the capital structure, CDCI liabilities have a corresponding asset in CDCI accounts receivable, both of which are shown in the table above and in the Financial Statements in Notes 6.1 and 14.
The Company had adjusted net debt of R$ (1.0) billion and shareholders' equity of R$ 3.2 billion. In Q2'24, cash including uncashed receivables totaled R$ 2.9 billion. The financial leverage indicator, measured by net cash/adjusted EBITDA over the last 12 months, was (1.1x). Considering the supplier agreement balance and the CDCI balance, the same indicator was (2.6x).
Debt maturity schedule - Q2'24 (after re-profiling)
Liquidity including uncashed receivables totaled R$ 2.9 billion. After the new re-profiling, of the R$ 3.9 billion in debt, 90% matures in the long term. The average cost of loans and financing is CDI + 1.95% y/y. Below is the maturity schedule to better illustrate the debt profile.
2.8 9
Cash | |||||||
Cards | |||||||
Other accounts receivable | 2.161 | ||||||
1.858 | Total debt | ||||||
829 | |||||||
395 | |||||||
446 | |||||||
626 | 245 | ||||||
99 | 99 | ||||||
- | |||||||
Posi o | 2S 24 | 2025 | 2026 | 202 | 2028 | 2029 | 2030 |
Cash Position |
caixaQ2 24T24
6
GROUP
Managerial Cash Flow
Var. Q2'24 | Var. 6M24 | |||||||||
Q2'24 | Q1'24 | Q4'23 | Q3'23 | Q2'23 | Q1'23 | vs Q2'23 | 6M24 | 6M23 | vs 6M23 | |
Profit (loss) for the period | 37 | (261) | (1.000) | (836) | (492) | (297) | 529 | (224) | (789) | 565 |
Cash profit after adjustments | 725 | 689 | 609 | 606 | 902 | 986 | (177) | 1.414 | 1.888 | (474) |
Change in working capital | 148 | (237) | 434 | 179 | 365 | (477) | (217) | (89) | (112) | 23 |
Inventories | (22) | (31) | 544 | 759 | 716 | (931) | (738) | (53) | (215) | 162 |
Suppliers | 170 | (206) | (110) | (580) | (351) | 454 | 521 | (36) | 103 | (139) |
Losses | (254) | (212) | (365) | (252) | (278) | (259) | 24 | (466) | (537) | 71 |
Legal claims | (219) | (216) | (242) | (367) | (359) | (260) | 140 | (435) | (619) | 184 |
Pass-through to third parties | (5) | (38) | 21 | (46) | (136) | (103) | 131 | (43) | (239) | 196 |
Taxes to be recovered/paid | 357 | 203 | 682 | 409 | 218 | (12) | 139 | 560 | 206 | 354 |
Other Assets and Liabilities | (328) | (65) | (66) | 31 | (8) | 5 | (320) | (393) | (3) | (390) |
Net cash generated (applied) in operating activities | 424 | 124 | 1.073 | 560 | 704 | (120) | (280) | 548 | 584 | (36) |
Net cash generated (applied) in leasing activities | (255) | (252) | (261) | (263) | (267) | (273) | 12 | (507) | (540) | 33 |
Net cash generated (applied) in investing activities | (77) | (48) | (91) | (63) | (100) | (251) | 23 | (125) | (351) | 226 |
Free cash flow | 92 | (176) | 721 | 234 | 337 | (644) | (245) | (84) | (307) | 223 |
Net borrowings | 338 | 23 | 682 | (189) | (308) | (1.262) | 646 | 361 | (1.570) | 1.931 |
Interest payments | (451) | (525) | (625) | (635) | (789) | (699) | 338 | (976) | (1.488) | 512 |
Follow-on, net of borrowing costs | - | - | - | 602 | - | - | - | - | - | - |
Others | - | - | - | - | - | - | - | - | - | - |
Net cash generated (applied) in financing activities | (113) | (502) | 57 | (222) | (1.097) | (1.961) | 984 | (615) | (3.058) | 2.443 |
Beginning balance of cash and cash equivalents | 2.900 | 3.578 | 2.800 | 2.788 | 3.548 | 6.153 | (648) | 3.578 | 6.153 | (2.575) |
Final balance of cash and cash equivalents | 2.879 | 2.900 | 3.578 | 2.800 | 2.788 | 3.548 | 91 | 2.879 | 2.788 | 91 |
Cash change | (21) | (678) | 778 | 12 | (760) | (2.605) | 739 | (699) | (3.365) | 2.666 |
Q2'24: Net profit of R$37 million, cash profit was positive at R$725 million.
The change in wor ing capital, made up of suppliers and inventories, decreased by R$ 217 million compared to Q2'23 due to the start of inventory optimization, which reached its target by the end of 2023, remaining stable between Q1'24 vs. Q2'24. We closed with 82 days of inventory and 122 days of suppliers, strengthened by the Transformation Plan, which brought the Company higher quality inventory.
In the Losses line, we recorded a 9% improvement vs. Q2'23. The improvement in Legal Claims was 39% over the same period. Taxes, R$ 357 million, was another positive highlight given the level of monetization in the period.
As a result, we ended Q2'24 with a free cash flow of R$ 92 million, positive even with the reduction in sales of R$ 1.2 billion, demonstrating greater efficiency in cash management, although still not enough to pay the interest of R$ 451 million. The cash change was (21) million in Q2'24 vs. (760) million in Q2'23, reflecting the operational improvements mentioned above.
6M24: despite a net loss of R$ 224 million, cash profit was positive at 1.4 billion.
We ended 6M24 with | a free cash flow of |
R$ (84) million vs. R$ (30 | ) million in 6M23 (best |
result in the last 5 years), still not enough to pay the interest of R$ 976 million. The change in cash was R$ (699) million in 6M24 vs. R$ (3,365) million in 6M23, reflecting the operational improvements mentioned above with the best result of the last 5 years (excluding FO of 2020).
Free Cash Flow | Cash | alance Variation | |||||
(R$ million) | (R$ million) | ||||||
3,013 | |||||||
-307 | -84 | ||||||
-1,493 | |||||||
-699 | |||||||
-3,269-3,271 | -2,140 | -2,401 | |||||
-3,365 | |||||||
6M20 6M21 6M22 6M23 6M24 | 6M20 | 6M21 | 6M22 | 6M23 | 6M24 |
Considers follow on for raising R$ 4.3 Billion
7
GROUP
CAPEX
In the quarter, the Casas Bahia Group's investments totaled R$ 49 million, 80% of which was directed to technology- related projects to support growth, the company's digitalization and the customer experience. In Q2'24, Capex was 50% lower vs. Q2'23 and 60% lower in 6M24 vs. 6M23.
R$ million | Q2'24 | Q2'23 | % | 6M24 | 6M23 | % |
Logistics | 2 | 4 | (56%) | 5 | 9 | (47%) |
New Stores | 7 | 1 | n/a | 9 | 8 | 8% |
Stores Renovation | 2 | 13 | (85%) | 4 | 18 | (76%) |
Technology | 37 | 78 | (53%) | 64 | 168 | (62%) |
Others | 0 | 1 | (61%) | 1 | 1 | (31%) |
Total | 49 | 96 | (50%) | 83 | 204 | (60%) |
Changes in Store by format and brand
Casas Bahia | Q2'23 | Q1'24 | Opening | Square meter | Closure |
optimization | |||||
Street | 787 | 765 | - | - | 3 |
Shopping Malls | 185 | 177 | - | 1 | - |
Consolidated (total) | 972 | 942 | - | 1 | 3 |
Sales Area ('000 m2) | 896 | 878 | - | (5) | 5 |
Total Area ('000 m2) | 1.413 | 1.384 | - | 3 | 5 |
Pontofrio | Q2'23 | Q1'24 | Opening | Square meter | Closure |
optimization | |||||
Street | 88 | 84 | - | - | - |
Shopping Malls | 67 | 50 | - | - | - |
Consolidated (total) | 155 | 134 | - | - | - |
Sales Area ('000 m2) | 86 | 75 | - | - | - |
Total Area ('000 m2) | 140 | 122 | - | - | - |
Q2'24
762 | Three stores were closed in the quarter, all under the Casas |
177 |
939 Bahia brand, bringing the total to 1,073 stores at the end of
the period.
Q2'24 | |
84 | In Q2'24, 4 Distribution Centers were closed, in line with the |
50 | planned reorganization. |
134 | |
75 | |
122 |
Consolidated | Q2'23 | Q1'24 | Opening | Square meter | Closure | Q2'24 |
optimization | ||||||
Street | 875 | 849 | - | - | 3 | 846 |
Shopping Malls | 252 | 227 | - | 1 | - | 227 |
Consolidated (total) | 1.127 | 1.076 | - | 1 | 3 | 1.073 |
Sales Area ('000 m2) | 982 | 953 | - | (5) | 5 | 944 |
Total Area ('000 m2) | 1.553 | 1.506 | - | 3 | 5 | 1.504 |
Distribution Centers | Q2'23 | Q1'24 | Opening | Square meter | Closure | Q2'24 |
optimization | ||||||
DCs | 29 | 29 | - | - | 4 | 25 |
Total Area ('000 m2) | 1.263 | 1.178 | - | - | 51 | 1.127 |
Consolidated (Total) | Q2'23 | Q1'24 | Opening | Square meter | Closure | Q2'24 |
optimization | ||||||
Total Area ('000 m2) | 2.816 | 2.684 | - | 3 | 56 | 2.631 |
We follow our Transformation Plan, which includes rigorous monitoring of the performance of each store and DC, directing corrective actions and, if necessary, closing down operations that do not generate value.
Logistics Ecosystem
Focus remains on growing logistics as a service revenue, reducing the cost of serving and improving the level of service (including marketplace sellers and Group partners).
1P, 3P and Casas ahia Group Fulfillment: general improvement in delivery times and growth in "as a service" revenue
- Delivery time in 1P improved by 14% vs. Q2'23 and 8% sequentially
- Delivery time in 3P improved by 43% vs. Q2'23 and 37% sequentially
- In the Casas Bahia Group Fulfillment, the deadline improved by 5% vs. Q2'23 and stable sequentially
- Customers and fulfillment revenues grow +19% and +30% y/y, respectively
Logistics - Open sea
The Casas Bahia Group's logistics is also a business. We are making progress in various sectors (clothing, home centers, tools, etc.). With this, we not only add density and volume to our logistics, with a consequent reduction in costs, but we also generate profitable incremental revenue for the Casas Bahia Group.
- Customers on the open sea and number of orders grow +19% and +13% respectively
8
GROUP
Financial solutions
Key Figures in Q2'24
- R$ 11.7 billion in total TPV, a decrease of 1.5% vs. Q223
- Installment plan portfolio closes at R$ 5.5 billion, +4.2% y/y
- Over 90 at 8.5% and loss on portfolio of 4.8%
- Co-brandedcards TPV reached R$ 5.3 billion, down 5% vs. Q2'23, with 4.1 million customers
- banQi reaches +7.5 million open accounts, +6% vs. Q2'23
TPV | Card TPV: On and Off us | |||||||||
(R$ million) | ||||||||||
12.298 | 11.912 | 11.669 | ||||||||
9.932 | 1.120 | 995 | 867 | |||||||
624 | 5.610 | |||||||||
4.570 | 5.570 | 5.289 | ||||||||
4.738 | 5.568 | 5.347 | 5.513 | |||||||
Q2'21 | Q2'22 | Q2'23 | Q2'24 | |||||||
BNPL | Cards | banQi + banQi Payments | ||||||||
Installment Plan - uy Now, Pay Later
Installment plan is a profitable service in the brick-and-mortar and online channels (1P and 3P) and a shopping opportunity for people who do not have access to credit or have little limit on their cards. In Q2'24, the installment plan portfolio grew by 4.2% y/y and reached R$ 5.5 billion. In stores, penetration was 27.2% vs. 22.8% in Q2'23. In 1P online, the share of digital installment plan was 7.9% vs. 5.4% in Q2'23, while in 3P it was 7.4% of sales vs. 3.6% and is enabled for +2,700 sellers. In addition, through the capillarity of digital installment plan, we have already made sales in over 4,500 municipalities without our brick-and-mortar stores (91.4% of Brazilian municipalities), reinforcing that credit on digital channels is a lever for profitable growth based on the Group's strengths.
Share of CDC in brick-and- | Share of Digital CDC (%) |
mortar stores (%) | |
31,1
29,2 | 29,0 | 2 | ,2 | ||
26,6 | |||||
25,4 | 24,9 | 25,5 | |||
21,8 | 21,5 | 22,8 | 22,3 | ||
19,8 | |||||
1P Online | ||||||
3P Online | ,9 | |||||
,0 | ,4 | |||||
6,3 | 6,4 | 6,3 | ||||
6,1 | 5,9 | |||||
5,4 | 5,6 | |||||
4,1 | 4,0 | 4,6 | 5,6 | 5,3 | ||
3,5 | 4,0 | 3,6 | ||||
5,0 | ||||||
2,8 | 2,9 | |||||
2,2 | ||||||
1,4 | 2,0 | |||||
Installment Plan Production - Total | Digital Installment Plan Production |
(R$ billion) | (R$ million) |
1,8 | 2,1 | 1,9 | 1,8 | 2,1 | |||||||
1,7 | 1,7 | 1,7 | 1,7 | 1,7 | 1,7 | 1,8 | 1,8 | ||||
1,5 | |||||||||||
Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24
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GROUP
Aging of the Installment Plan Portfolio | Evolution of the Active Portfolio |
(R$ million) | (R$ billion) |
ADA | |||||||||||||||
1000 | (R$ million) | 40, 0% | |||||||||||||
900 | |||||||||||||||
35, 0% | |||||||||||||||
800 | |||||||||||||||
30, 0% | |||||||||||||||
700 | 610 | 643 | 621 | 656 | 626 | 624 | 658 | 62 | 611 | 601 | 601 | 595 | |||
58 | 586 | ||||||||||||||
25, 0% | |||||||||||||||
600 | |||||||||||||||
500 | 20, 0% | ||||||||||||||
400 | |||||||||||||||
15, 0% | |||||||||||||||
300 | |||||||||||||||
13,2 | 13,6 | 12,8 | 13,1 | 12,2 | 10, 0% | ||||||||||
11,3 | 11, | 11,4 | 11,3 | 11,4 | 11,4 | 11,2 | |||||||||
200 | 11,1 | 10,6 | |||||||||||||
5, 0% | |||||||||||||||
100 | |||||||||||||||
0 | 0, 0% | ||||||||||||||
Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 | |||||||||||||||
ADA Balance | ADA Balance/Active Portfolio |
5,6 | 5,7 | 5,5 | 5,4 | 5,3 | 5,3 | 5,3 | 5,3 | 5,5 | ||||||
5,2 | ||||||||||||||
5,0 | ||||||||||||||
4,9 | ||||||||||||||
4,7 | ||||||||||||||
4,6 | ||||||||||||||
7,9% | 7,4% | 7,4% | 8,7% | 9,0% | 8,5% | 8,4% | 9,5% | 9,0% | 9,1% | 9,3% | 9,4% | 9,0% | 8,5% | |
Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 | ||||||||||||||
Active portfolio* | 90+ overdue | |||||||||||||
Loss on Portfolio | ||||||||||||||
(R$ million) | ||||||||||||||
350 | 328 | 32, 0% | ||||||||||||
27, 0% | ||||||||||||||
300 | ||||||||||||||
256 | 252 | 261 | 249 | 263 | ||||||||||
241 | 239 | |||||||||||||
22, 0% | ||||||||||||||
250224
199 | 17, 0% | |||||||||||||||
200 | 183 | 191 | ||||||||||||||
1 | 0 | |||||||||||||||
12, 0% | ||||||||||||||||
150 | 110 | |||||||||||||||
7, 0% | ||||||||||||||||
100 | 5,8 | 2, 0% | ||||||||||||||
2,4 | 4, | 3,5 | 4,0 | 3,6 | 4, | 4,6 | 4,5 | 4,9 | 4, | 4,5 | 3,6 | 4,8 | ||||
50 | - 3, 0% | |||||||||||||||
Q1'21 Q2'21 Q3'21Q4'21 Q1'22 Q2'22Q3'22Q4'22 Q1'23 Q2'23Q3'23 Q4'23 Q1'24Q2'24 | ||||||||||||||||
Los s | Los s/Active Portfolio |
We recorded a continuous reduction in AFDA expenses and coverage more than exceeds losses. The over 90 rate was 8.5%, up 0.5 bps vs. Q1'23 and 0.6 bps vs. Q2'23, reflecting the trend in the quality of the portfolio. The level of losses on the active portfolio was 4.8%, within the historical average, corroborating the other indicators in credit.
banQi
banQi will now focus on generating value for the Company, using the existing ecosystem. The App has been downloaded
20.0 million times with 7.5 million accounts. The app is increasingly becoming part of customers' daily lives, and we highlight: (i) R$ 20 billion in accumulated transactions; (ii) accumulated TPV reaching R$ 11.0 billion; and (iii) the frequency of use continues to improve every quarter, reaching 54x in the last 360 days.
Apps Downloads | ||||||||||||||||||||
Q1'20 | Q2'20 | Q3'20 | Q4'20 | Q1'21 | Q2'21 | Q3'21 | Q4'21 | Q1'22 | Q2'22 | Q3'22 | Q4'22 | Q1'23 | Q2'23 | Q3'23 | Q4'23 | Q1'24 | Q2'24 | CAGR | ||
Quarter | 205 | 308 | 673 | 1.088 | 1.205 | 1.246 | 2.660 | 2.847 | 1.160 | 1.282 | 1.359 | 1.347 | 816 | 793 | 819 | 703 | 650 | 576 | 2021-2024 | |
Accumulated | 557 | 864 | 1.538 | 2.626 | 3.831 | 5.077 | 7.737 | 10.584 | 11.744 | 13.026 | 14.385 | 15.732 | 16.548 | 17.341 | 18.160 | 18.863 | 19.513 | 20.089 | 100% | |
New Accounts | ||||||||||||||||||||
Q1'20 | Q2'20 | Q3'20 | Q4'20 | Q1'21 | Q2'21 | Q3'21 | Q4'21 | Q1'22 | Q2'22 | Q3'22 | Q4'22 | Q1'23 | Q2'23 | Q3'23 | Q4'23 | Q1'24 | Q2'24 | CAGR | ||
Quarter | 101 | 175 | 407 | 596 | 653 | 596 | 979 | 712 | 518 | 547 | 575 | 598 | 263 | 222 | 181 | 152 | 99 | 3 | 2021-2024 | |
Accumulated | 212 | 387 | 794 | 1.391 | 2.044 | 2.640 | 3.619 | 4.331 | 4.849 | 5.396 | 5.971 | 6.569 | 6.832 | 7.054 | 7.235 | 7.387 | 7.486 | 7.489 | 142% | |
Total Transactions | ||||||||||||||||||||
Q1'20 | Q2'20 | Q3'20 | Q4'20 | Q1'21 | Q2'21 | Q3'21 | Q4'21 | Q1'22 | Q2'22 | Q3'22 | Q4'22 | Q1'23 | Q2'23 | Q3'23 | Q4'23 | Q1'24 | Q2'24 | CAGR | ||
Quarter | 13 | 32 | 143 | 288 | 402 | 784 | 1.238 | 1.351 | 1.501 | 1.750 | 1.904 | 2.061 | 1.839 | 1.876 | 1.868 | 1.834 | 1.662 | 1.668 | 2021-2024 | |
Accumulated | 23 | 55 | 196 | 484 | 887 | 1.671 | 2.909 | 4.260 | 5.761 | 7.511 | 9.415 | 11.476 | 13.315 | 15.191 | 17.059 | 18.893 | 20.555 | 20.223 | 230% | |
Total TPV | ||||||||||||||||||||
Q1'20 | Q2'20 | Q3'20 | Q4'20 | Q1'21 | Q2'21 | Q3'21 | Q4'21 | Q1'22 | Q2'22 | Q3'22 | Q4'22 | Q1'23 | Q2'23 | Q3'23 | Q4'23 | Q1'24 | Q2'24 | CAGR | ||
Quarter | 6 | 14 | 53 | 130 | 214 | 399 | 595 | 656 | 742 | 866 | 936 | 1.023 | 909 | 923 | 919 | 903 | 822 | 822 | 2021-2024 | |
Accumulated | 10 | 23 | 76 | 206 | 420 | 820 | 1.415 | 2.071 | 2.813 | 3.679 | 4.615 | 5.638 | 6.547 | 7.470 | 8.389 | 9.292 | 10.113 | 10.935 | 237% | |
Store Transactions | ||||||||||||||||||||
Q1'20 | Q2'20 | Q3'20 | Q4'20 | Q1'21 | Q2'21 | Q3'21 | Q4'21 | Q1'22 | Q2'22 | Q3'22 | Q4'22 | Q1'23 | Q2'23 | Q3'23 | Q4'23 | Q1'24 | Q2'24 | CAGR | ||
Quarter | 4 | 5 | 39 | 80 | 86 | 138 | 180 | 171 | 163 | 184 | 173 | 175 | 138 | 136 | 130 | 122 | 104 | 107 | 2021-2024 | |
Accumulated | 7 | 12 | 50 | 131 | 217 | 354 | 534 | 705 | 868 | 1.052 | 1.225 | 1.400 | 1.538 | 1.674 | 1.804 | 1.926 | 2.030 | 2.137 | 182% | |
Average frequency use of the banQi app (# of times over 360 days) | CAGR | |||||||||||||||||||
Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 | Q3'21 | Q4'21 | Q1'22 | Q2'22 | Q3'22 | Q4'22 | Q1'23 | Q2'23 | Q3'23 | Q4'23 | Q1'24 | Q2'24 | 2021-2024 | |||||||
Average frequency | 5 | 5 | 6 | 7 | 10 | 12 | 14 | 17 | 19 | 21 | 23 | 25 | 29 | 33 | 42 | 48 | 54 | 179% |
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