August 6, 2018 / 10:35 PM / a month ago

UPDATE 1-Brazil's Magazine Luiza doubles net profit in 2nd qtr to $37.6 mln

(Adds comment by company)

SAO PAULO, Aug 6 (Reuters) - Magazine Luiza SA, a Brazilian electronics and appliance retailer whose shares have surged 100 percent in the last year, beat profit estimates on Monday, despite Brazil’s slow economic recovery.

In a securities filing, the company posted second-quarter net income of 140.7 million reais ($37.6 million), double the same period a year ago and beating a Reuters estimate of 123 million reais.

Earnings before interest, taxes, depreciation and amortization, a gauge of cash generation known as EBITDA, grew 32.5 percent in the quarter to 312.4 million reais, as financial costs fell thanks to lower interest rates.

The company said it began the second half of the year with a “more cautious” outlook for the short term because of the slower than expected recovery of the economy and a weakening of the real against the dollar.

“We could have a more challenging period,” it said.

$1 = 3.7355 reais Reporting by Gabriela Mello Editing by Tom Brown and Sandra Maler

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