VIA S.A. 1

The relationship and shopping platform of the Brazilian consumer

Total GMV of R$11.0 billion in Q1'23. Gross Margin of 32.1% and Adjusted

EBITDA of R$675 million (9.2% of Net Revenue)

Highlights

The Omnichannel model

Q1'23 vs. Q1'22

•

Total GMV reaches R$11.0 billion, +2.6% YoY

GROSS

•

Bricks-and-mortar stores GMV grew 10.7%, same-store-sales +9.0% YoY

GMV

•

3P GMV moved up 25.6% in Q1'23 vs. Q1'22

R$11.0 bn

Profitability

INSTALLMENT

• Gross margin of 32.1% in Q1'23, +1.4p.p. YoY

•

Adjusted EBITDA of R$675 million with a margin of 9.2%

PLANS (BNPL)

•

3P revenue surges 56.1% vs. Q1'22 to R$175 million, with a take rate of 12.0%

R$5.4 bn

•

170 bps higher share of installment plan at stores sales vs. Q4'22

• Sales rep GMV productivity outpaces Q1'22 by 23.1%

STORES

Financial Solutions scaling up on Via's omnichannel model

SALES

•

TPV of financial solutions totaled R$11.9 billion, +6% YoY

+10.7%

•

Installment plan portfolio ended Q1'23 at R$5.4 billion, with losses at 4.5%

  • banQi reached+6.8 million accounts, +40.8% YoY

SSS • banQi personal loan portfolio reached R$584 million, with a portfolio of R$237 million

  • Co-brandedcards totaled R$5.5 billion TPV, +6% YoY

+9.0%

Logistics Solutions: Logistics as a Service stands out in 3P and "Open Seas"

3P REVENUE

•

3P deliveries (Total and Envvias) advanced 37% and 23% YoY, respectively

+56.1%

• Via Fulfillment deliveries 28% faster in Q1'23 vs. Q4'22

•

"Open-seas" logistics and the number of orders jumped +17x and +188%, respectively

3P GMV

Cash

• Cash position, including card receivables, totaled R$3.5 billion in Q1'23

+25.6%

•

Cash outflow in labor claims of R$232 million in Q1'23, 41% down YoY

  • Tax credit monetization of R$606 million in Q1'23

ONLINE

•

Inventory decreased by R$406 million YoY

MARKET

•

Accounts payable - agreement down by R$1.1 billion YoY

SHARE*

13.8%

*Source: Compre & Confie

(R$ Million)

Q1'23

Q1'22

%

Total GMV

10,951

10,673

2.6%

GMV Omnichannel (1P)

9,489

9,508

-0.2%

GMV Omnichannel (3P)

1,462

1,164

25.6%

Gross Revenue

8,788

8,712

0.9%

Net Revenue

7,354

7,399

-0.6%

Gross Margin

32.1%

30.7%

140bps

Adjusted EBITDA

675

673

0.2%

Adjusted EBITDA Margin

9.2%

9.1%

10bps

EBIT

(553)

(42)

n/a

Income Tax, Social Contribution & Investment Grant

256

60

n/a

Operational Net Income

(297)

18

n/a

Note: the summations and calculations in this report may not check due to rounding off.

Online Market Share

Via stands amongst the main players in the online market; according to Compre & Confie, the Company recorded a market share of 13.8% in Q1'23. The 120 bps YoY gain and the 100 bps QoQ gain relate to Via's leading role played in 1P core categories and 3P GMV growth. In March/23, we ended with an online market share of 15% (+330 bps vs. Dec/22), and according to the graph below, it was the Company's all-time higher share, a result of greater consolidation in categories we are the destination, also 3P channel growth upturn. It is worth pointing out that, besides a relevant market gain, this was conquered profitably.

Evolution of Quarterly Online* Market Share

14.5%

14.8%

13.8%

13.3%

13.3%

12.8%

12.7%

12.6%

12.8%

12.8%

12.2%

11.3%

10.1%

Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23

*Source: Compre & Confie in R$ GMV

In the graph below, we detail the evolution of monthly share in the period (Dec/21-Mar/22 vs. Dec/22-Mar/23). We could see a continued share gain growth in 2023.

Evolution of Monthly Online* Market Share

(Dec/21-Mar/22 vs. Dec/22-Mar/23)

15.0%

14.1%

12.5%

11.7%

12.8%

13.1%

12.1%

11.4%

Dec

Jan

Feb

Mar

Dec/21 - Mar/22

Dec/22 - Mar/23

*Source: Compre & Confie in R$ GMV

2

Productivity

With greater possibilities at hand, our sales reps' productivity has accelerated, resulting in higher GMV and revenue per sales rep and conversion.

According to the graphs, this has been an upward evolution. When we look at the GMV by sales rep, we recorded a 23% YoY growth and a 41% advance when compared to Q1'21. Such dynamics also can be seen when we analyze revenue by sales rep, with a 21% uplift from Q1'22 and 29% from Q1'21.

GMV by Sales Rep

Revenue by Sales Rep

+41%

+23%

+29%

+21%

Q1'21

Q1'22

Q1'23

Q1'21

Q1'22

Q1'23

VIA GEOFAST

In a groundbreaking partnership with Grupo Dreamers, Via kicks off a leading-edge project of regionalizing retail campaigns. This project is a combination between the Aceleraí platform, a content platform, and advertising production, and the Multiplica, a management and media operation platform.

Via now has available, also its suppliers (1P) and sellers (marketplace), an exclusive product for its operation, the ViaGeoFast. This platform will enable an extremely agile scaled regionalization, suiting mass communication with particularities of each city in the country, meaning that in minutes we will have the power to act and react in a hyperlocal way. The communication shall take place through TV, radio, OOH, and digital.

3

3P GMV totaled R$1.5 billion in Q1'23 (+26% vs. Q1'22), reflecting the execution of our long-tail promotion stimulus strategy and recurrence. 3P revenue grew 56.1%, fueled by higher commissions (prioritizing sustainable margins) and penetration of services offered in the marketplace with 12.0% of take rate. This is the role of the marketplace at Via: generate recurrence for current customers, attract new customers, and make the shopping experience increasingly more complete, besides leveraging logistics and credit.

GMV and 3P Revenue

(R$ million)

3P GMV

3P Revenue

1,462

+26%

1,039

1,164

175

112

+56%

76

Q1'21

Q1'22

Q1'23

Share of Orders

(Q1'23 vs. Q1'22)

32%

40%

Core

68%

60%

Tail

Q1'22

Q1'23

Take Rate

(Q1'23 vs. Q1'22)

+240bps

9.6% +100bps +90bps +40bps +10bps 12.0%

Q1'22Q1'23

Categories with the highest growth in long-tail items in number of orders (Q1'23 vs. Q1'22)

Categories

% Growth

Dietary supplement

141%

Baby

101%

Tools

58%

Beverages

56%

Suitcases/Bags/Accessories

50%

Food

41%

  • Sellers (thousand)

155 138

26

Q1'21

Q1'22

Q1'23

  • SKUs (million)

67

46

24

Q1'21 Q1'22 Q1'23

In Q1'23, consumers, spontaneously, also looked at 3P core categories, reaching 40% of orders share vs. 32% in Q1'22. We believe this growth can be related to recent changes in the sector.

So, as we expand services offered to sellers (omnichannel model, logistics, services, and financial solutions), and ramp up the assortment, we will gain greater complementarity in relation to our destination categories, improve our level of service, reduce CAC, activate our customer base, and increase recurrence. Thus, the result is to boost revenue growth with profitability.

4

In 2023, Via will focus on its revenue growth, cost of service cutback, as well as broadening the level of service for marketplace sellers and off-Via's partners.

Logistics - 3P (Envvias)

  • The volume of deliveries jumped 190% YoY
  • Envvias deliveries as % of total deliveries in 3P went from 6% in Q1'22 to 25% in Q1'23
  • Fulfillment share in Envvias went from 2% to 18% YoY
  • Collect share in Envvias went from 48% to 60% YoY
  • Delivery time of 3P (Total and Envvias) was reduced by 37% and 23% YoY, respectively

Fulfillment Via

  • The delivery time dropped 28% in the Q1'23 vs. Q4'22
  • 10% of orders were delivered on the next day
  • 51% of orders were delivered within 48 hours
  • Number of customers and orders grew by 40% and 29% YoY, respectively

Envvias

6%

% deliveries

25%

3P

20%

48%

1%

2%

60%

48%

18%

2%

Q1'22

Q1'23

Fulfillment

Collect Drop-Off

Postage

Logistics - "Open Sea" Operation

For us, logistics is also a business. We have been advancing in various verticals (clothing, home center, tools, etc.), not only providing our logistics with density and volume, and cost-savings but also, generating profitable incremental revenue for Via.

  • 294% freight revenue growth YoY
  • Open-seacustomers and the number of orders surged +17x and +188%, respectively

Transports (Open Sea)

CustomersOrders - thousand

+17x

+188%

Q1'22

Q1'23

Q1'22

Q1'23

5

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Disclaimer

Via Varejo SA published this content on 04 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 May 2023 22:00:26 UTC.