Brazil’s Q1 Earnings Split: Retail Slows, Transport and Energy Surge

Overview

• Retail showed strain as Magazine Luiza posted a R$55.2 million net loss with in‑store sales up 6.9% and total e‑commerce down 11%, while C&A’s same‑store growth cooled to 4.8% and profit slid to R$1.7 million.
• Transport and fuel groups led gains as Localiza’s profit rose 45% to R$1.22 billion, helped by a R$177 million divestment gain, and Ultrapar’s earnings jumped 163% to R$876 million on stronger Ipiranga and the Hidrovias consolidation.
• Education names stood out on profit but faced thinner margins, with Vitru reporting R$794.7 million in net income and Cogna lifting revenue 31.9% and net income 48.7% as gross margin fell under a new reporting setup.
• Logistics recovered as Rumo swung to a R$93 million profit on a 25.5% rise in hauled volume even with lower average tariffs after a pricing reset.
• One‑offs and financing costs steered several results, with Ecorodovias booking a loss tied to the end of its Ecovias Sul concession and Brava Energia reporting a R$350 million loss linked to oil‑hedge accounting effects.