MLAS3

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 its activities 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, portable audio and video players, and, from the mid-2000s onward, categories such as tablets, mobile phones, televisions, small home appliances, toys, security equipment, and connected-home products. The inauguration, in 2007, of the industrial complex in Extrema (MG) marked an inflection 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.

Throughout its trajectory, Multilaser has undergone a process of diversification and production verticalization. In 2013, it created Brasil Componentes, a subsidiary focused on manufacturing 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), beginning to operate more significantly in security cameras, access-control solutions, intercom systems, and video recording. In 2019, it completed the acquisition of Proinox Brasil Ltda., in Itajaí (SC), aimed at improving logistics efficiency and foreign trade. 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 within a diversified consumer platform. The company is engaged in the development, manufacturing, assembly, and commercialization of products such as smartphones, tablets, notebooks, televisions, memory chips, small home 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 between own brands and around 12 international partner brands, serving multiple income brackets and consumer niches. The company combines local production, mainly at its Extrema and Manaus plants, with the import of finished products 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 computer peripherals, office supplies, internet and security equipment, with a focus on small retailers and internet service providers. The Home Electric Products segment groups products for residential use not directly related to computing, including audio and video items, small home appliances, and health care products, sold mainly through 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 across 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 the 2024 fiscal year, the company recorded a net loss, influenced mainly by exchange-rate fluctuations and derivative results, while simultaneously discontinuing less profitable product lines and facing temporary supply shortages during part of the year. This dynamic highlights the company’s exposure to demand cycles in durable goods and to foreign-exchange volatility, combined with an ongoing portfolio-management effort aimed at 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 penetration in large chains such as Magazine Luiza, Casas Bahia, Kalunga, Havan, Carrefour, and various regional retailers, which together represented a relevant share of revenue in 2024. In addition to physical retail, marketplaces have been gaining ground, both those operated by major chains and platforms such as Mercado Livre, Amazon, and Shopee, as well as 10 proprietary online 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 targeting niches such as toys, baby products, gyms, and electric mobility accounted for 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, inventory, 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 Zona Franca (Free Trade Zone) regime. The Extrema hub concentrates, among other activities, the production of memory chips, the assembly of electronics such as mobile phones, tablets, notebooks, TVs and displays, as well as the manufacturing of certain components and items such as small home appliances and hygienic mats for pets. 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 procedures for reliability, performance, and quality testing 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 for consumer goods and technology companies in Brazil. The operation is governed by the Consumer Defense Code, which regulates consumer rights, quality and safety obligations, and clear information on products and services. The company is also subject to the General Data Protection Law (LGPD), since it processes personal data of employees, customers, suppliers, and third parties, having appointed a data protection officer and implemented internal initiatives for regulatory compliance, process monitoring, and building a corporate culture focused on privacy. In environmental matters, as a manufacturer and importer of goods, Multilaser falls under the framework of the National Environmental Policy and the Environmental Crimes Law, regimes 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 publicly traded company listed 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-based 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 companies 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 space, the acquisition of Watts Comércio de Patinetes Elétricos e Veículos Recreativos strengthened its presence in scooters, bicycles, and electric motorcycles and, more recently, in manufacturing projects for the Royal Enfield brand in the combustion-motorcycle segment. In consumer electronics, industrial projects for global brands such as Hisense, in the television line, and Oppo, in smartphones, demonstrate Multilaser’s capability 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.