Grupo SBF, the operator of Brazil’s top sporting goods chain in Centauro that became the country’s exclusive distributor of Nike in Dec. 2020, reported a 16 percent decline in Q4 adjusted Ebitda to 226.6 million Brazilian reais (€42.3m) for the period ended Dec. 31. Gross margin fell to 47.6 percent from 48.1 percent. Adjusted net profit, excluding expenses, slid by 77.5 percent to BRL 70.5 million (€13.1m). Total Q4 net revenues increased 17.8 percent to BRL 1.98 billion (€369.8m). For FY22, adjusted Ebitda rose 6.4 percent to BRL 749.5 million (€139.8m), although the Ebitda margin slipped to 12.0 percent from 13.8 percent in FY21. Annual gross margin came in at 47.0 percent versus 46.0 percent. Annual adjusted net profit declined by 56 percent to BRL 206.5 million (€38.5m) despite 22.5 percent revenue growth to BRL 6.26 billion (€1.18b), or 2.5x higher than the company’s FY19 revenues.
While Fisia’s annual performance benefitted from growth in the direct-to-consumer channel and the opening of nine additional Nike stores, Centauro’s business faced challenges that included a need to increase investments and its level of markdowns.
Centauro Q4 revenues increased by 8.5 percent to R$1.15 billion (€214.1m), but sales were negatively impacted by a more challenging macroeconomic environment, a competitive marketplace and a lack of best-selling products fueled by the global supply chain crisis. Gross margin slid by 330 basis points to 46.6 percent from 49.9 percent. Quarterly sales in B&M stores were up 9.6 percent to BRL 844.9 million (€157.6m) and rose by 5.5 percent in the digital channel to BRL 303.2 million (€56.6m). For the FY, Centauro revenues jumped by 18.9 percent to BRL 3.5 billion (€653.6m), with B&M store sales increasing 20.2 percent to BRL 2.6 billion (€484.3m) and digital sales improving 15.3 percent year-over-year to BRL 907.9 million (€169.3m).
Fourth quarter Fisia revenues climbed 29.8 percent higher year-over-year to BRL 968.8 million (€180.7m), benefitting from World Cup sales, the opening of nine new stores, and the resumption of revenues from the wholesale channel after the completion of an SAP system migration. Wholesale revenues increased by 12 percent to BRL 427.9 million (€79.8m), with digital platform sales improving 73 percent to BRL 327.8 million (€61.1m) and B&M store sales gaining 21.8 percent to BRL 213.1 million (€39.7m). Nike Value Store sales declined by 2.8 percent during Q4, which the group attributed to a change in operating strategy aimed at higher profitability through fewer markdowns. Gross margin rose 620 basis points to 42.6 percent, benefitting from a new pricing strategy implemented in Q3 that offset currency headwinds.
For the financial year, Fisia segment sales improved by 26.4 percent to BRL 3.2 billion (€597.9m), with wholesale up a meager 1.4 percent to BRL 1.54 billion (€287.5m), digital up a whopping 96 percent to BRL 1.07 billion (€199.1m), and B&M store revenues increasing by 26.1 percent year-over-year to BRL 597.3 million (€111.4m).
