Multi, formerly known as Multilaser, reported that in the fourth quarter of last year it had a net loss of 205.2 million reais.changing the net profit of 153.1 million reais recorded for the same period in 2021. The company also announced that its net profit was R$90.0 million in 2022, down 88.4% from 2021.

According to information published by Multi itself, Ebitda (earnings before interest, taxes, depreciation and amortization) for the fourth quarter of 2022 was negative by 150.4 million reais.while for the same period in 2021, the result was positive by 153.5 million reais, indicating a significant difference compared to the same period from year to year.

The company attributes these results to an increase in selling expenses and a reserve of R$52.3 million related to the STF’s decision to collect taxes. In 2022, Ebitda was 244.5 million reais, with an Ebitda margin of 5.6%. In the fourth quarter of 2022, the Ebitda Multi margin was -13.5%.

According to the financial results published by Multi, net revenue in the fourth quarter of 2022 was BRL 1.111 billion, down 11.8% from the same period of the previous year. Net revenue for all of 2022 was BRL 4.3838 billion, down 9.5% from 2021.

One of the main factors behind this decline is a 35.6% drop in domestic retail sales and a 13.3% drop for the government due to supply delays due to the October 2022 elections. Multi’s direct sales grew by 81.2%. consumer sales channel throughout the year.

Multi aims for new strategies to get stronger

To balance your finances, Multi is pursuing an aggressive strategy to cut its net debt in half this year., according to the head of the company. In the fourth quarter of 2022, Multi’s net debt was R$546.9 million.

In addition to its goal of reducing net debt, Multi is pursuing a portfolio management strategy that includes new product launches in 2023, such as small appliances and electric motorcycles from startup Watts, acquired by the company a year ago. With seven thousand products currently sold across ten brands, Multi is also planning new partnerships and new venture launches.

In addition to debt reduction and portfolio management, Multi is also looking to increase inventory turnover by maintaining an average inventory of six months. Another area of ​​the company’s activity is strengthening direct sales to consumers.

According to the company’s president, March was a month of stabilization after a drive to maximize orders in January and an unsatisfactory result in February. Currently, the company is billing orders faster than they come in, the executive said.

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