Multiplan released, on Thursday (02/09), the results of the fourth quarter of 2022 (4Q22) with records in Sales, Rent, EBITDA and Net Income, among others. The 4Q22 analysts conference call was held on Friday (02/10) at 11h with the company's executives participating. Check out this link.
Tenants total sales in the fourth quarter was R$6.3 billion, representing the highest result ever obtained by the Company: R$20 billion in the year, thus reaffirming the quality and robustness of its portfolio. Even with two flagship events in the country — the presidential elections and the FIFA World Cup — tenant sales grew 12.9% in 4Q22 compared to 4Q21. Compared to 2019, growth was 22.1%.
In 2022, all of Multiplan 's malls presented double-digit growth in sales compared to the previous year. Among the highlights, MorumbiShopping maintained its record growth trend, registering an increase in sales of 53.7% vs. 2021 and 29.9% vs. 2019. In 2022, the mall celebrated its 40th anniversary and saw an increase in the number of vehicles compared to 2019 and 2021, rising by 15.6% and 53.8% respectively. It is worth noting that ShoppingVilaOlímpia had the largest increase in sales in the Company's portfolio in 2022, with 56.6% compared to 2021.
At VillageMall, tenants' sales in 2022 exceeded both 2021 and 2019 in all quarters of the year. In 4Q22, its sales increased 15.0% compared to the same period of the previous year and 40.7% over 2019. ParkJacarepaguá, which celebrated its first anniversary in December 2022, saw a 34.6% increase in sales compared to December 2021, the largest increase among all Multiplan shopping malls.
Main indicators of the quarter
Multiplan's malls kicked off 2023 with strong preliminary results. Sales in the first month of the year registered growth of 22.6% compared to the same month in 2022, and was up 28.6% over January 2019. It is worth noting the increase in sales of ShoppingSantaÚrsula and ShoppingVilaOlímpia, in January 2023, which, compared to the same period of the previous year, rose 48.5% and 44.0%, respectively.
In 2022, Same-Store Sales (SSS) recorded growth of 33.0% vs. 2021, with all segments presenting double-digit numbers. When compared to 2019, the result was also positive: an increase of 20.7%.
The Food & Gourmet Areas and Services segments particularly notable when compared to 2021, with an increase of 44.7% and 54.7% respectively. It is worth mentioning that the growth of the Services segment was strongly driven by the 135.3% increase in movie screenings, benefited by the gradual return of film releases.
The Miscellaneous segment, which posted growth of 23.8% vs. 2021 (+19.3% compared to 2019), was supported by strong performance in activities such as perfumery/cosmetics (+39.7%) and supermarket/delicatessen (+20.8%).
In 2022, Multiplan’s portfolio recorded a Same Store Rent (SSR) increase of 38.1% vs. 2021, which implied real SSR growth of 20.1% compared to the previous year. Compared to 2019, the SSR presented an increase of 58.2% in 2022. It is worth mentioning that, in 2022, half of the Company's portfolio showed an SSR growth of more than 50% compared to 2019.
EBITDA totaled R$374.6 million in the period, a record for a fourth quarter in Multiplan's history, growing 31.3% compared to 4Q21 and 48.4% in 4Q19. In 2022, EBITDA reached R$1,280.1 million, an increase of 57.9% compared to 2021, and 37.3% above 2019. The strong result was primarily driven by a substantial increase in rental revenues. In addition, the good results numbers moved the Company into its lowest leverage position in 10 years, with the Net Debt/EBITDA ratio reaching 1.63 x at the end of December of last year.
Net Income totaled R$239 million (net margin of 46.7%) in 4Q22, reflecting growth of 11.9% vs. 4Q21 and 68.0% vs. 4Q19. Growth was mainly driven by the increase in net revenues and the decrease in the depreciation and amortization line when compared to 4Q21. Net income for 2022 was R$769.3 million, reflecting an increase of 69.8% vs. 4Q21 and 63.3% vs. 4Q19.
In 4Q22, Gross Revenue totaled R$559.8 million, once again a record (excluding effects of the sale of Diamond Tower in 3Q20) for the Company, with an increase of 19.3% compared to 4Q21 and 39.6% in 4Q19. This result was corroborated by the increase in rental revenue, which represented 88.9% of total gross revenue. The 19.3% increase in parking revenue (vs. 4Q21), totaled R$75.4 million in 4Q22, reflecting adjustments in parking rates and higher vehicle flow compared to 4Q21.
In 4Q22, Multiplan's Total Lease Revenues (including shopping malls and commercial towers) reached record levels, totaling R$497.9 million, up 12.6% and 45.8% compared to 4Q21 and 4Q19, respectively. Mall rental revenues represented 97.2% of total rental revenue, totaling R$483.8 million in 4Q22, growing 12.4% vs. 4Q21 and 52.2% vs. 4Q19.
Net Operating Income (NOI) ended the quarter reaching R$463.6 million, the highest amount ever recorded by the Company. In addition, the result of 4Q22 was up 19.9% vs. 4Q21, and 39.2% above 4Q19. The historical maximum of the NOI was mainly driven by a rental revenue of R$497.9 million and property expenses below inflation.
Another record indicator was the Distribution of Interest on Shareholders' Equity of R$420 million, an increase of 42.4% when compared to 2021. The result corroborates the good performance of the company's business, cash generation, earnings and strategy.
MULTI app: doubling an already high base, again
The Multi app closed a year of rapid growth, reaching 3.6 million cumulative downloads at the end of last year. In 2022, the application saw close to a doubling of its usage compared to the previous year, with nearly 13 million accesses due to a higher number of features.
While reaching significant usage volumes and downloads, the over 60,000 user reviews virtually maintained the maximum score (4.9 out of 5) and demonstrated the satisfaction of Multiplan's customers. In December, Multi occupied the 5th spot in the top chart of an influential app store in its category, surpassing several prominent physical and online retailers.
Last year, the super app saw an increase of 200,000 new customers registering in the MultiVocê loyalty program, contributing to a utilization frequency. Considering the Q4 loyalty program and seasonal retail promotions, Multi received 3.6 million purchase slips. During the Christmas promotions season, 36% of the sales of the malls then managed by the Company were mapped through sales slips received over Multi.
ESG - adding value to the business
Multiplan supports a number of initiatives aimed at making a positive impact on environmental sustainability, social and corporate transparency. In this context, in 4Q22, Multiplan continued a series of awareness and development initiatives in the communities where it is present. Among the main actions is the inauguration of the Holocaust Memorial, with Multiplan as its main supporter. The space promotes reflection on the importance of human rights, democracy, tolerance, freedom, and respect for diversity as ethical values and fundamental human principles, bringing together stories of victims and survivors, showing their lives before, during, and after the historical episode.
José Isaac Peres announces succession at Multiplan
At the same time as the 4Q22 results were released, at the initiative and under the leadership of José Isaac Peres, Multiplan announced the approval of its Management reorganization plan. After serving for almost 50 years as Chief Executive Officer of the Company, he will be succeeded in the role by his son, Eduardo Kaminitz Peres, current Vice President of Operations, who for more than 30 years has been leading the excellent performance of the Group's shopping centers. The Company will convene a general meeting to propose the election of José Isaac Peres to the position of Chairman of the Board of Directors, to continue to contribute to Multiplan. The current Chairman of the Board of Directors, José Paulo Ferraz do Amaral, will remain a member of the Board.
