February 23, 2017 / 12:51 PM / 3 years ago

Brazil's Via Varejo swings to profit on integration of online unit

SAO PAULO, Feb 23 (Reuters) - Via Varejo SA, Brazil’s largest appliance retailer, booked pro forma fourth-quarter net income of 13 million reais ($4 million) on Thursday as it reaped cost savings from the integration of online unit Cnova Brasil.

The swing to profit, accounting for a full three months of online and offline operations, reversed a net loss of 474 million reais a year earlier and was well above the Thomson Reuters consensus estimate of a 206 million reais net loss.

Via Varejo said its quarterly net profit including just two months of the online operation was 75 million reais.

Pro forma earnings before interest, tax, debt and amortization, a gauge of profitability known as EBITDA, rose tenfold from a year earlier to 469 million reais.

Via Varejo posted a net loss of 90 million reais in the third quarter as Brazil’s prolonged recession eroded consumer confidence and demand for electronic goods.

$1 = 3.0777 reais Reporting by Brad Haynes and Ana Mano; Editing by Bernadette Baum

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