Dimed (PNVL3) Q3 2024 earnings summary

Executive summary

• Achieved strong recovery in 3Q24 after flood disruptions in 2Q24, with retail revenue up 17.0% year-over-year and operations normalized, driven by same-store sales growth of 14.1% and mature stores up 11.4%.

• Digital channels reached a record 21.2% of retail sales, with app sales up 35.3% year-over-year and rapid delivery supporting customer loyalty.

• Adjusted EBITDA grew 26.8% to R$71.8 million (5.4% margin), and net income rose 37.1% to R$37.3 million (2.8% margin).

• Market share in the South region increased for the 18th consecutive quarter, reaching 12.5%, with gains in all southern states.

• Expansion resumed with 14–15 new stores in Q3, reaching 612 stores, and continued investment in technology and AI.

Financial highlights

• Retail gross revenue reached R$1.289 billion (+17.0% YoY), with consolidated gross margin at 29.4% (+1.2 p.p.), and retail gross margin at 29.9%.

• Same-store sales grew 14.1% and mature store sales 11.4%, both well above inflation (4.4%).

• Retail EBITDA margin increased to 11.7% year-over-year.

• Free cash flow was -R$72.5 million, mainly due to inventory investments and store openings.

• Operating expenses grew below retail sales: selling expenses +11.5%, administrative expenses +8.4%.

Outlook and guidance

• Guidance reaffirmed to open 60 new stores in 2024, with continued margin expansion, efficiency gains, and leverage reduction.

• Expects normalization of Panvel-branded product supply and strong sales in the second half.

• No significant margin risk anticipated from upcoming tax changes; proactive measures in place.