B2W drops US$1mn into the red in Q1

Friday, May 6, 2011

Brazilian online retailer B2W Cia Global do Varejo fell 1.6mn reais (US$1mn) into the red in Q1, compared with a net profit of 14mn reais in the same quarter a year ago, according to financial results released by the company.

The company posted consolidated revenues of 1.03bn reais for 1Q11, rising 13% compared with 913mn reais in 1Q10. However, increases in other items such as depreciation and amortization, net financial losses and other non-operating losses dragged down the bottom line.

Ebitda in Q1 rose 11% year-on-year to 115mn reais, while the Ebitda margin increased 1.7 percentage points to 15.6% in the period.

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The company said its priorities for the next quarter include increasing sales, developing and expanding the Blockbuster brand over internet, boosting the number of active customers and fostering new internet businesses.

B2W's portfolio comprises the brands Americanas.com, Submarino, Shoptime, B2W Viagens, Ingresso.com, Submarino Finance and Blockbuster Online, offering more than 35 categories of products and services through the internet, telesales, catalogs, TV and kiosks.

In March, the B2W board approved a private share issue worth 1bn reais.