By Gabriela Mello
SAO PAULO, Aug 12 (Reuters) - Brazilian electronics and appliance retailer Magazine Luiza SA MGLU3.SA said on Monday its second-quarter net profit almost tripled year-on-year, helped by non-recurring tax credits and strong sales driven largely by e-commerce.
In a securities filing, the company reported a net income of 386.6 million reais ($97.02 million), up 174.7% from a year ago. The figure also comprises the acquisition of online shoes retailer Netshoes Ltd in a $114.9 million transaction concluded on June 14, it added.
Excluding the adoption of international accounting standards known as IFRS 16, tax credits, Netshoes and other provisions, Magazine Luiza's net profit would have been 108.5 million reais last quarter, a 23.9% drop from a year ago.
Analysts on average expected net income of 103.87 million reais, according to Refinitiv data.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 21.6% year-on-year to 379.9 million reais, beating a consensus estimate of 291 million reais compiled by Refinitiv.
Total sales, including brick-and-mortar stores, traditional e-commerce and third-party vendors climbed by 24.4% in the second-quarter to 5.747 billion reais.
Magazine Luiza said its e-commerce represented 41.5% of total sales in the period compared to 33% a year ago. Online sales grew by 56.2% in the second-quarter, boosted mostly by third-party vendors in its marketplace platform.
In its brick-and-mortar chain, however, same-store-sales growth significantly slowed to 0.3% from 27.1% in the second-quarter of 2018.
Quarterly net revenue soared 16.6% year-on-year to 4.308 billion reais. Total operational expenses rose by 16.3% to 933.2 million reais.
Magazine Luiza shares have become an investor darling in the last few years, more than doubling in value in 2018, as the company successfully transitioned from a family-owned brick-and-mortar store chain into a tech-savvy retailer.
Its strong performance is also seen as a challenge to local rivals Via Varejo SA VVAR3.SA and B2W Companhia Digital SA BTOW3.SA, as well as to international retailers currently expanding operations in Brazil, including Amazon.com Inc AMZN.O and Mercadolibre Inc MELI.O.
($1 = 3.9683 reais)
(Reporting by Gabriela Mello; Editing by Sandra Maler and Chris Reese)
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