Multiplan

News

07.08.2020

Multiplan announces 2Q20's results

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Multiplan Empreendimentos Imobiliários released the results of the second quarter of 2020 on Thursday (August 6). Despite the social distancing measures implemented, the Company demonstrated it could quickly introduce measures that partially compensated for the suspension of shopping mall activities and the effects arising from this scenario.

EBITDA totaled R$180.8 million in the quarter with a margin of 70.3%, an increase of 442 b.p. over the same period the previous year. In addition to the impact of the straight-line effect of rent revenue, cost and expense reduction actions contributed to the result. Considering the last 12 months ended in June 2020, EBITDA totaled R$1.012 billion, an increase of 12.2% over the same period of the previous year.

Despite the affects of the temporary suspension of mall activities, Funds From Operations (FFO), which does not include the straight-line effect, remained positive in 2Q20 and reached R$15.9 million. Taking into account the last 12 months ended in June 2020, FFO was R$664.2 million.

 

Operations during only 8.4% of regular opening hours

In the period, although the malls operated for only 8.4% of the regular opening hours, store sales in Multiplan's malls were equivalent to 15.3% of sales recorded in 2Q19, or R$587.8 million. The shopping centers that remained open for longer periods, despite restrictions in some segments, posted the best sales results in the quarter. Highlights were ParkShopping Canoas, ParkShopping, ParkShoppingBarigüi and BarraShoppingSul. ParkShopping Canoas operated during the equivalent of 35.9% of the opening hours in 2Q19 and its sales represented 55.2% of the level reported in 2Q19. The total flow of vehicles in the Company's 19 shopping centers corresponded to 18.8% of 2Q19, also proportionally exceeding the percentage of hours of operation.

Total rental revenue was R$66.8 million in 2Q20, equivalent to 25.2% of 2Q19. The result mainly was impacted by the rent payment conditions offered to shopkeepers after the temporary suspension of retail operations in Brazil as of March 18, 2020, mitigated by the Company's strategy to offering a number of alternate sales channels to its shopkeepers.

The measures taken by the Company to support retailers also impacted net revenue, which totaled R$257 million, down 20.9% compared to the same period in 2019, and on net income, which reached R$70.8 million in 2Q20, a decrease of 38.6% compared to 2Q19. In the last 12 months, net income increased 17.4% compared to June 2019 (12M), reaching R$512.4 million, for a compound annual growth rate (CAGR) of 8.8% in the last 5 years.

 

Occupancy above the national average

In the quarter, despite a drop of 121 b.p. compared to the same period of the previous year, the average occupancy rate remained high, at 96.3%, above the national average. The Company believes that the location of its shopping centers in densely populated areas with growth potential, its long-term strategy, along with mix management and its efforts to support shopkeepers, were decisive to achieve this result.


Multi-channel strategy

In reaction to the social distancing measures and the temporary suspension of mall operations, the Company expanded its multichannel strategy, with a rapid increase in demand registered in a number of its initiatives. Over the last two months, Multiplan expanded the Multi marketplace into three other malls: BarraShoppingSul, ParkShopping São Caetano and ParkShoppingBarigüi. Altogether, seven of the Company's projects already offer this functionality, which allows clients to receive their purchases at an address within a 10-kilometer delivery radius.

The expansion of Multi 's marketplace was a response to growth in customer demand. Total payment volume (TPV) in the superapp in the second quarter of 2020 grew 2.8 times compared to the first three months of the year. The result was driven by an 8.8-fold volume increase in the non-food category, which corresponded to 23% of the TPV in the quarter (the other 77% was in food operation sales).

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