Multiplan Shatters Profit Records In Q4 2024, Charts Aggressive Growth Path

2025-02-07 05:00:53

(MENAFN- The Rio Times) Multiplan, Brazil's second-largest shopping center operator, announced a historic net profit of R$512.5 million for Q4 2024-a 69.4% year-over-year surge-driven by strategic expansions and cost discipline, per its latest earnings report.

The result eclipsed full-year profits from 2018 and 2019 combined, with annual net profit climbing 31% to R$1.34 billion ($223) as foot traffic rebounded and digital engagement soared.

The company funneled R$911 million ($152) into expansions and upgrades last year, revitalizing assets like Rio de Janeiro's New York City Center, where post-renovation sales jumped 37.5% in Q4.

Ten of Multiplan's 22 malls surpassed R$1 billion ($167) in annual sales, while leasable area grew 2.3x since its 2007 IPO through targeted renovations.

CFO Armando d'Almeida Neto noted the quarter's profit alone exceeded earlier annual totals, calling it a“testament to portfolio resilience” amid Brazil's 13.75% benchmark interest rate.

Digital adoption accelerated sharply, with the Multi loyalty app logging 28 million quarterly sessions-up 60% year-over-year-as shoppers leveraged personalized discounts.

Operational tightening slashed shopping center expenses by 12% and headquarters costs by 1.7%, boosting EBITDA margins to 69.6%. Asset sales, including a 25% stake in JundiaíShopping, freed capital for developments like Porto Alegre's Golden Lake phase two.

Despite shares dipping 19% over 12 months, Multiplan repurchased R$2 billion ($333) in stock, betting its R$30.1 billion ($502) asset portfolio is undervalued against a R$11.56 billion ($193) market cap.

“High rates pressure consumers, but experiences still draw crowds,” d'Almeida Neto said, pointing to 2025 expansion plans for ParkShoppingBarigüi and DiamondMall.

With debt at 27.4% of equity and liquidity reserves growing, analysts flag Multiplan as a reopening play with pricing power in Brazil's fragmented retail sector.

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