Allied Tecnologia (ALLD3) Q4 2024 earnings summary

Executive summary

• Achieved resilient results in a challenging electronics market, with diversified business pillars: distribution, physical retail, and digital retail, including strategic partnerships and remanufacturing.

• Adjusted net income reached R$128.9 million in 2024, up 28.2% year-over-year, reflecting strong operational efficiency and business diversification.

• Brazilian operations outperformed the declining market, with 17% growth in Q4 and 4% year-over-year, while international distribution declined 27% due to competition and currency headwinds.

• Maintained leadership in electronics distribution, selling 6.2 million products and operating 113 stores and 4 distribution centers.

• Strategic partnerships with Apple, Nubank, HP, and others, and expansion of Trocafy, drove growth in digital and retail channels.

Financial highlights

• Net revenue for 2024 was R$5,521.4 million, down 5.7% year-over-year, mainly due to international distribution decline.

• Adjusted EBITDA was R$221 million in 2024, with an EBITDA margin of 4.0% and net profit of R$129 million.

• Gross profit for 2024 was R$657.5 million, with a gross margin of 11.9%, up 0.3 p.p. from 2023.

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

• Net debt at year-end was R$81.7 million, leverage at 0.4x EBITDA, and operational cash flow of R$235.7 million.

Outlook and guidance

• Focus on expanding international distribution, especially in Latin America, and broadening product portfolio and B2B/B2C partnerships.

• Remanufacturing (Trocafy) expected to grow rapidly, leveraging new partnerships and increased collection points.

• Continued investment in digital transformation and pursuit of new corporate and government contracts.

• Market conditions remain challenging in 2025, with restricted credit and currency volatility, but resilience and adaptability are emphasized.