Americanas (AMER3) Q4 2024 earnings summary

Executive summary

• 2024 marked a pivotal year of operational and financial restructuring, highlighted by the execution of a Judicial Recovery Plan, major debt restructuring, and a R$24.5 billion capital increase, resulting in positive shareholders' equity after a prior deficit.

• The company focused on operational, commercial, and financial efficiency, with new leadership and a shift toward brick-and-mortar (B&M) growth and digital resizing.

• Strong performance in major retail events and ongoing store portfolio optimization, including closure of underperforming units and new format testing, supported double-digit same-store sales growth.

• Discontinued financial services segment (Ame Digital and Parati) and initiated asset sales as part of strategic realignment.

• Maintained strong support from clients, suppliers, and shareholders, meeting commitments and generating improved results quarter over quarter.

Financial highlights

• Total GMV for 2024 was R$21.4 billion, down 5.1% year-over-year, with B&M GMV up 11.9% and digital GMV down 48.9%.

• Consolidated net revenue for 2024 was R$14.3 billion, a 2.8% decrease from 2023; gross profit rose 10.8% to R$4.6 billion, with gross margin up 3.9 p.p. to 32.3%.

• Adjusted EBITDA for 2024 was R$947 million, a significant turnaround from negative R$2.3 billion in 2023; adjusted EBITDA (ex-IFRS 16) was negative R$41 million, a marked improvement.

• Net income for 2024 was R$8.3 billion, mainly due to financial gains from debt settlements and haircuts; 4Q24 saw a net loss of R$586 million, a substantial improvement over 4Q23.

• SG&A expenses fell 16.6% year-over-year, representing 32.8% of net revenue, down 5.4 p.p.

• Net cash at year-end was R$962 million, reversing a net debt of R$33.5 billion in 2023; including forfait, net cash was R$913 million.

Outlook and guidance

• Management remains focused on completing the transformation and reconstruction process, with ongoing operational improvements and cost reductions, but no specific EBITDA or margin guidance provided.

• Omnichannel integration (O2O), customer recurrence, and B&M as the core business are key strategic priorities for 2025.

• The company anticipates exiting judicial recovery by February 2026, subject to compliance with plan obligations.