Restoque reduces losses in Q3 by 27.7 percent

Restoque, owner of brands like Le Lis Blanc, Dudalina, Rosa Chá and John John, closed the third quarter of 2017 with a net loss of 6.4 million Brazilian real (1.9 million dollars), 27.7 percent lower than the loss of 8.8 million Brazilian real (2.7 million dollars), the company reported in the same period of 2016.

The company reported higher net revenue in the third quarter, in the company's history, with growth of 11.9 percent to 3Q16, 316 million Brazilian real (97 million dollars). The company also witnessed fourth consecutive quarter of same store sales growth (SSS), reaching 14.9 percent, with Le Lis Blanc reporting same-store sales rise of 15 percent, Dudalina, 13.2 percent, John John, 28.2 percent and Rosa Chá, 29.8 percent.

EBITDA between July and September 2017 stood at 62.9 million Brazilian real (19.4 million dollars), up 2.9 percent. The EBITDA margin closed at 19.9 percent, down 1.7 percentage points compared to the third quarter of last year. Excluding non-recurring impacts, Restoque reports that the EBITDA for the quarter would have been 79.2 million Brazilian real (24.5 million dollars), up 29.6 percent, with a margin of 25.1 percent, up 3.4 percentage points year-on-year. Also disregarding non-recurring effects, the company says it would close the quarter with net income of 6.6 million Brazilian real (2.04 million dollars).

As announced earlier, the company moved from a base of 327 stores at the end of 2016 to 293 at the end of 3Q17, following its plan to increase efficiency in retail, focusing on higher productivity of the existing store base, profitability and cash generation . The implementation of this plan, the company said, resulted in an 18.6 percent increase in productivity per m2 of the company in 3Q17 and 25.9 percent in 9M17.

Picture:Facebook/Le Lis Blanc