Allied Tecnologia S.A. (ALLD3) Q4 2024 earnings summary

Executive summary

• Achieved resilient and recurring net income in 2024, with adjusted net profit up 28.2% year-over-year, driven by strong Brazilian operations and business diversification, despite a 5.7% decline in net revenue due to international headwinds.

• Maintained leadership in electronics distribution, selling 6.2 million products, operating 113 stores and 4 distribution centers, and expanding digital and physical retail through partnerships with Samsung, Apple, Nubank, and others.

• Expanded strategic partnerships and remanufacturing initiatives, notably with HP, Nubank, Apple, and Trocafy, supporting growth in digital and retail channels.

• Financial statements for 2024 were audited and present fairly in all material respects, in accordance with Brazilian and IFRS standards.

• Soudi Pagamentos Ltda. was merged into the company in October 2024, consolidating its net assets.

Financial highlights

• Net revenue for 2024 was R$5,521.4 million, down 5.7% year-over-year; Q4 net revenue was near R$1,386.6 million.

• Adjusted net profit reached R$128.9 million in 2024, up 28.2% year-over-year; profit for the year was R$145.5 million.

• Adjusted EBITDA for 2024 was R$221 million, with a 4% margin; consolidated gross profit was R$657.5 million, gross margin 11.9%.

• Dividend yield reached 30.7%, with R$190 million distributed in 2024 and R$122 million approved for 2025.

• Net debt at year-end was R$81.7 million, leverage at 0.4x EBITDA; cash and cash equivalents at R$535.6 million.

Outlook and guidance

• 2025 expected to remain challenging due to credit restrictions and currency volatility; focus on expanding international distribution, refurbished products (Trocafy), and strategic B2B/B2C partnerships.

• Continued investment in digital transformation, new product categories, and corporate/government contracts.

• Management expects to realize deferred tax assets within thirteen years, based on feasible and verifiable assumptions.