Grupo Madero has a loss of R$ 115 million in 2021 and postpones the IPO

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Having reported a net loss of BRL 115.2 million in 2021, until September, Grupo Madero will wait for more favorable market conditions to carry out its initial public offering of shares (IPO, its acronym in English).

In early August, the owner of the Madero and Jeronimo restaurant chains had applied for registration for a share offering with the CVM (Securities Commission), seeking resources to pay debts and expand the business.

“The Madero Group, in its strategic plan, has the goal of carrying out an IPO as soon as the capital market presents conditions to carry out an operation in the parameters that the company deems appropriate, which, combined with the return to normality of operations with consequent reflection on Ebitda, will substantially impact the company’s capital structure,” says the group, in the balance sheet released this Thursday (18).

Also according to the restaurant chain, debt management has been done through partnerships with large financial institutions. “Management believes that with the actions already taken and those that are in the final stages of completion, they will provide the company with the necessary conditions to honor all the commitments made in the next 12 months.”

The company’s net debt totaled R$981.1 million in September 2021, an increase of 80.5% year-on-year, driven by the need to support operations during the peak of the coronavirus pandemic and by the business expansion strategy.

“The restrictions imposed on the restaurant sector are changing rapidly and, even though most of the company’s operating states are currently in the process of gradually or even completely releasing restrictions, as is the case in the state of São Paulo, the main market of the Madero Group, we cannot guarantee that new additional adverse impacts to the business will not re-emerge”, informs the company.

The network also highlights that, with the advance of the vaccination campaign, the restrictions on circulation and requirements that impact restaurant activities show a certain level of slowdown, allowing for an improvement in the flow of customers, but not yet at a fully normalized pace.

Headquartered in Paraná and 250 units across the country, Madero was founded in 2005 by businessman Luiz Durski Junior. In March 2020, Durski Junior became embroiled in a controversy after claiming that the economic consequences of social isolation would be worse than the deaths caused by Covid-19.

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