Multiplan announces its results for the second quarter of 2018. Net income reached R$ 145.7 million, an increase of 39.4% over the same period of the previous year, mainly due to a 21.2% increase in EBITDA and a 28.9% drop in net financial expenses. The net margin was 47.5%, an increase of 1,067 b.p. over 2Q17.
EBITDA reached R$ 257.3 million in the second quarter, representing strong growth of 21.2% over the same period of 2017. The Company posted a record EBITDA margin of 84.0%, a 910 b.p. growth over the second quarter of 2017.
Store sales at Multiplan's malls remained high in the second quarter of 2018, reaching R$ 1,579/m² per month, with growth of 2.2% in the quarter, totaling R$ 3.6 billion, a very positive result taking into account the World Cup, as well as a strong comparison base due to the growth of the second quarter of 2017 (8.7%).
Multiplan registered Same Store Rent (SSR) revenue of R$ 118/m² per month in the period, an increase of 3.2% over the second quarter of last year, when the SSR increased by 8.6%. In the second quarter, total rental revenue increased by 4.7% compared to the same period in 2017, going from R$ 238.8 million to R$ 250.1 million.
The average occupancy rate demonstrated resilience and remained stable at 97.3% in the quarter. If the areas delivered in 2017 were excluded, the occupancy rate would be 97.7%. The VillageMall showed the highest increase in the occupation rate, growing 163 b.p. and reaching 99.3%. ParkShoppingCampoGrande (93.9%), MorumbiShopping (97.6%) and ParkShopping (99.3%) also showed strong recoveries of 148 b.p., 127 b.p. and 67 b.p., respectively. The occupancy rate of the company's first ten shopping malls remained high, at 98.1% in the quarter, again demonstrating the operating portfolio's strength.
In recent years, Multiplan has consistently improved its store mix to anticipate consumer needs and incorporate new retail trends into its shopping malls. After two more intense years of changes in the mix, turnover fell to 1.2% of total GLA in the period. However, current turnover remains at levels above the historical indicator. Considering the 12-month period ended June 2018, 4.3% of the total GLA (34,806 m²) was exchanged, compared to 5.0% in 2017.
In June 2018, Multiplan announced the settlement of its sixth debentures issue, in a single, non-convertible series, in the total amount of R$ 300.0 million. The issue will mature in a single installment at the end of the sixth year (May 2024), with semi-annual interest payments. During the bookbuilding process, the Company was able to reduce the initial remuneration rate from 108.75% of CDI p.a. to 107.25% of CDI p.a. The issue was rated brAAA by Standard & Poor's.
Access the full report at http://ri.multiplan.com.br/ptb/2046/Earnings%202Q18%20-%20POR_consolidado.pdf
