Atacadão (CRFB3) Q4 2024 earnings summary

Executive summary

• FY24 delivered double-digit EBITDA growth of 13.4% and a sixfold increase in adjusted net income, with consolidated gross sales reaching R$120.6bn (+4.4%).

• Q4 24 gross sales were R$32.8bn (+5.5% y/y), with strong LfL growth at Atacadão (+6.3%), Carrefour Retail (+5.9% ex-petrol), and Sam's Club (+2.1%).

• Store network optimization included 19 new Atacadão and 7 new Sam's Club stores, while 191 Retail stores were converted, sold, or closed.

• CEO highlighted successful execution of the 2023-announced strategy, market share gains in cash & carry, and efficiency improvements.

• ESG progress included a 47% reduction in Scope 1 and 2 emissions and increased food donations, with recognition in B3 ICO2 and CDP A-list.

Financial highlights

• Adjusted EBITDA for FY24 was R$6.5bn (+13.4% y/y, margin 5.9%, +43bps), with Q4 24 at R$1.9bn (+2.2% y/y, margin 6.5%).

• Adjusted net income for FY24 was R$2.4bn (6.2x FY23), with Q4 24 at R$1.8bn (+240.5% y/y).

• FY24 gross sales: R$120.6bn (+4.4% y/y); net sales: R$109.3bn (+5.2% y/y); gross margin: 19.4% (-52bps y/y).

• SG&A as % of net revenues down 96bps in FY24, reflecting efficiency gains and synergy capture.

• Net debt/adj. EBITDA (incl. discounted receivables): 1.6x in FY24, stable y/y.

Outlook and guidance

• Management targets R$2.9bn in annualized synergies, close to the 2025 goal.

• Investments made in 2024 are expected to mature in coming quarters, consolidating leadership in club and cash & carry formats.

• Additional operational expenses related to store closures/sales will impact Q1 and Q2 2025.