Release Date: November 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Enjoei SA (BSP:ENJU3, Financial) reported a 36% year-over-year increase in total GMV, reaching 418 million BRL in Q3 2024.
- The company achieved a historic high gross margin of 57.2% and a positive EBITDA of 4.2 million BRL.
- Significant growth in net revenue by 24% compared to the previous year, reaching 68.1 million BRL.
- The Elo7 platform saw a 28% increase in GMV generated by each cart due to checkout process improvements.
- The company successfully opened its third physical store, marking the completion of its initial pilot phase for offline expansion.
Negative Points
- Despite positive results, the company faces challenges in maintaining stability in quarterly comparisons for some platforms.
- There is uncertainty regarding the full rollout and impact of new initiatives like the 'Creditor by Va' program.
- The expansion into physical stores and franchises involves risks and requires careful execution to ensure profitability.
- The company did not disclose specific financial metrics for its physical stores, which may concern investors seeking transparency.
- Seasonal events could potentially affect cash flow, despite the company's positive outlook on maintaining a stable cash level.
Q & A Highlights
Q: Can you elaborate on the sustainability of the current EBITDA levels and the expansion plans for physical stores through franchising?
A: T Lima, CEO: The EBITDA is structural and recurring, free from one-off effects. We anticipate further growth and cost reductions, aiming for a two-digit EBITDA in the medium term. Regarding franchising, the business is promising, with positive feedback from franchisees. We are enthusiastic about this long-term strategy.
Q: Could you provide more details about the high growth in revenues from Chriss and Bird?
A: The growth in revenue is due to an intensified expansion movement and execution of many contracts, which has driven revenue growth for Chriss and Bird.
Q: Can we expect positive cash flow after investments in all quarters moving forward?
A: We aim for a two-digit EBITDA, which should generate consistent cash flow. While there may be seasonal fluctuations, the overall trend is positive, and we expect cash flow to remain positive.
Q: What are the gross margin and EBITDA of the physical stores, and what supports the confidence in reaching 300 units by 2027?
A: We are confident due to the operational data from our physical stores, including sales conversion and revenue generation. Although we don't disclose specific numbers, the market response has been positive, and we see the 300-store target as achievable.
Q: What is the process for selecting franchisees, and how will this impact future company results?
A: We target experienced multi-franchisees to accelerate operations, leveraging their market experience. This strategy will initially focus on multi-franchisees before expanding to other profiles, which should positively impact future results.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
