Atacadão (CRFB3) Q4 2024 earnings summary

Executive summary

• FY24 delivered double-digit EBITDA growth (+13.4%) and a ~6x increase in adjusted net income year-over-year, with consolidated gross sales reaching R$120.6bn (+4.4%).

• Strategic execution included 19 new Atacadão stores, 7 new Sam's Club stores, and significant portfolio optimization in Retail, including store conversions and closures.

• Efficiency gains and cost discipline led to a reduction in SG&A as a percentage of net sales by 96-100bps.

• ESG initiatives advanced, with a 47% reduction in Scope 1 and 2 emissions, increased food donations, and progress in diversity and inclusion.

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

Financial highlights

• FY24 gross sales: R$120.6bn (+4.4% y/y); Q4 24: R$32.8bn (+5.5% y/y); net sales: R$109.3bn (+5.2% y/y); gross margin: 19.4% (-52bps y/y).

• FY24 adjusted EBITDA: R$6.5bn (+13.4% y/y, margin 5.9%, +43bps); Q4 24: R$1.9bn (+2.2% y/y, margin 6.5%).

• FY24 adjusted net income: R$2.4bn (6.2x y/y, margin 2.2%); Q4 24: R$1.8bn (3.4x y/y, 6.0% margin).

• SG&A expenses in FY24: R$14.8bn (-1.8% y/y), representing 13.5% of net sales (-96bps y/y).

• Net financial result for FY24: R$(2.8)bn, stable y/y; net debt: R$10.1bn, net debt/adj. EBITDA: 1.6x.

Outlook and guidance

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

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

• Continued focus on cost discipline, operational efficiency, and ESG commitments for 2025.

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