MLAS3 Multilaser

Multilaser, currently named Grupo Multi S.A., is a Brazilian consumer goods company focused on electronics and technology products, whose common shares are traded on B3 under the ticker MLAS3. Founded in 1988 by Israel Ostrowiecki, the company began operations in the printer cartridge recycling segment and, over time, migrated to the commercialization of computer accessories and consumer electronics. The evolution of the business included the gradual expansion of its portfolio to sound systems, digital cameras, and portable audio and video players, until it reached, from the mid‑2000s onward, categories such as tablets, cell phones, televisions, small appliances, toys, security equipment and products related to the connected home. The opening, in 2007, of the industrial complex in Extrema (MG) marked a turning point, consolidating Multilaser as an industrial company and not just a distributor, with its own capacity to produce memory chips and assemble electronics on a large scale.

Over its history, Multilaser has undergone a process of diversification and production verticalization. In 2013, it created Brasil Componentes, a subsidiary focused on the manufacture of memory chips at the Extrema complex, becoming the only 100% domestically owned private company to produce integrated memory chips in Brazil, with automated operations. In 2017, it acquired Giga Indústria e Comércio de Produtos de Segurança Eletrônica S.A., with a plant in Manaus (AM), gaining a significant presence in security cameras, access control solutions, intercom systems and image recording. In 2019, it completed the acquisition of Proinox Brasil Ltda., in Itajaí (SC), aimed at gaining logistics and foreign trade efficiency. In 2021, it carried out its initial public offering (IPO) on B3, going public and adopting a listed company structure under the name Multilaser Industrial S.A., later changed to Grupo Multi S.A. in 2024, aligning the corporate brand with its broad, multi‑segment portfolio strategy.

Multilaser’s business model combines product development, manufacturing, importing, distribution and after‑sales services on a diversified consumer platform. The company is involved in the development, manufacture, assembly and commercialization of products such as smartphones, tablets, notebooks, televisions, memory chips, small appliances, audio and video items, health and wellness products, toys, pet products, baby products, electric mobility vehicles and telecommunications network equipment. As of December 31, 2024, the portfolio comprised more than 4,000 SKUs, distributed among proprietary brands and around 12 international partner brands, serving multiple income ranges and consumer niches. The company combines local production, mainly at the Extrema and Manaus plants, with imports of finished goods from Asian suppliers, supported by a diversified base of approximately 500 international suppliers, certified and monitored by its own laboratory in Shenzhen, China.

Multilaser’s internal organization is structured into four main operating segments, which reflect how management monitors performance and allocates resources. The Mobile Devices segment concentrates portable electronic devices such as smartphones, notebooks and tablets, serving large retail chains, corporate clients and government entities, particularly state and municipal education departments. Office & IT Supplies covers IT peripherals, office supplies, internet and security equipment, focusing on small retailers and internet service providers. The Home Electric Products segment brings together products for residential use not directly related to IT, including audio and video items, small appliances and health care products, sold mainly in large retail chains and drugstore chains. Kids & Sports encompasses toys, light and heavy childcare products, pet items, drones, action cameras and electric mobility equipment such as scooters, bicycles and electric motorcycles, serving specialized channels such as toy stores, gyms and recreational vehicle dealers.

In 2024, Grupo Multi’s consolidated net operating revenue reached approximately R$ 3.39 billion, distributed in a relatively balanced way among the segments. Home Electric Products accounted for 33.6% of net revenue, followed by Office & IT Supplies with 31.6%, Mobile Devices with 20.5% and Kids & Sports with 15.9%. In terms of gross profit, Home Electric Products also stood out, representing 38.0% of the total, while Kids & Sports accounted for 24.3%, Office & IT Supplies for 21.5% and Mobile Devices for 16.2%. In fiscal year 2024, the company recorded a net loss, mainly influenced by foreign exchange fluctuations and derivative results, while it discontinued less profitable product lines and faced occasional supply shortages during part of the year. This dynamic highlights the company’s exposure to demand cycles in durable goods and to currency volatility, combined with an ongoing effort in portfolio management focused on margins and inventory turnover.

Multilaser maintains a broad nationwide presence through a multichannel sales platform. Its products are distributed to around 8,400 retail customers across Brazil, with reach into large chains such as Magazine Luiza, Casas Bahia, Kalunga, Havan, Carrefour and various regional retailers, which together accounted for a significant share of revenue in 2024. In addition to physical retail, marketplaces have been gaining relevance, both those operated by major chains and platforms such as Mercado Livre, Amazon and Shopee, as well as 10 proprietary virtual stores that make up the company’s e‑commerce channel. In 2024, marketplaces together with proprietary digital channels accounted for 11% of net revenue, while specialized channels, focused on niches such as toys, baby products, gyms and electric mobility, represented 11.8% of revenue. Management of the sales force, with around 500 professionals including representatives and promoters, is supported by proprietary systems such as Mercury, which integrates commercial management, inventories and commercial policies, and the Multiplik app, which promotes incentives, training and direct communication with point‑of‑sale salespeople, expanding the reach of commercial initiatives.

On the industrial and operational front, the company leverages tax and location benefits by combining the Extrema plant, in Minas Gerais, with the Manaus unit, which operates under the Free Trade Zone regime. The Extrema hub concentrates, among other activities, the production of memory chips, the assembly of electronics such as cell phones, tablets, notebooks, TVs and displays, as well as the manufacture of some components and items such as small appliances and pet training pads. In Manaus, the company assembles product families that benefit from the region’s tax regime, including a significant portion of the electronics line and, via Watts, the production of electric motorcycles and vehicles. The production process uses SMT (Surface‑Mount Technology) lines for automated assembly of electronic boards and integration lines that combine manual and automated stages. Multilaser also maintains strict reliability, performance and quality testing procedures in its own laboratory, both for products assembled in‑house and for imported finished goods.

From a regulatory and governance standpoint, Grupo Multi is subject to a set of rules typical of consumer goods and technology companies in Brazil. Its operations fall under the Consumer Defense Code, which regulates consumer rights and obligations regarding quality, safety and clear information about products and services. The company is also subject to the General Data Protection Law (LGPD), since it handles personal data of employees, customers, suppliers and third parties, having appointed a data protection officer and structured internal initiatives for regulatory compliance, process monitoring and the development of a corporate culture focused on privacy. In environmental matters, as a manufacturer and importer of goods, Multilaser is covered by the National Environmental Policy and the Environmental Crimes Law, frameworks that establish administrative, civil and criminal liability for environmental damage, including in relation to third parties contracted for activities such as waste disposal. As a listed company on B3, the company also follows corporate governance and transparency practices required by the Brazilian capital markets, combining industrial operations, consumer portfolio management and partnerships with global brands in an integrated model of hardware and technology consumer goods.

In recent years, Multilaser has also intensified its activities through partnerships with international brands and strategic moves to expand or complement its portfolio. The company has entered into agreements with firms such as DJI, a global reference in drones and action cameras, and Razer, a brand aimed at the gamer audience, adding new categories and positioning to its local portfolio. In the electric mobility and recreational vehicles area, the acquisition of Watts Comércio de Patinetes Elétricos e Veículos Recreativos reinforced its presence in scooters, bicycles and electric motorcycles and, more recently, in manufacturing projects for the Royal Enfield brand in the combustion‑engine motorcycle segment. In consumer electronics, industrial projects for global brands such as Hisense, in the TV line, and Oppo, in smartphones, highlight Multilaser’s ability to also operate as an original equipment manufacturer (OEM), offering industrial infrastructure and production capacity to third parties in Brazil, which diversifies revenue sources and reinforces the company’s positioning as a consumer goods and technology platform integrated into the global supply chain.