Dimed (PNVL3) Q4 2024 earnings summary

Executive summary

• Achieved record retail gross revenue of R$5.05 billion in 2024, up 15.7% year-over-year, despite severe floods in Rio Grande do Sul impacting operations and logistics.

• Closed wholesale operations by year-end to focus on higher-margin, scalable retail business, improving capital allocation and margins.

• Opened 55 new stores in 2024, reaching 631 total, with accelerated digital transformation and digital channels representing 21.9% of retail sales in 4Q24.

• Overcame unprecedented challenges in 1H24 due to severe floods, impacting over 1,500 employees, 80 stores, and key facilities, but responded with agility and strong social initiatives.

• Delivered consistent sales and profitability growth, with digital and private label products gaining relevance.

Financial highlights

• Group gross revenue reached R$5.32 billion in 2024 (+10.8% vs 2023); adjusted EBITDA was R$263.1 million (+12.9%); adjusted net income was R$117.4 million (+7.1%).

• Retail gross margin was 29.7% for the year (+0.6 p.p. YoY); adjusted EBITDA margin was 4.9%; adjusted net margin was 2.2%.

• Excluding flood impacts, estimated 2024 adjusted EBITDA would have been R$277.7 million (5.1% margin) and adjusted net income R$131.5 million (2.4% margin).

• 4Q24 retail sales grew 17.8% year-over-year; same-store sales up 14.8%; mature store sales up 12.0%.

• Net debt/EBITDA at 1.2x by year-end, reflecting a solid capital structure.

Outlook and guidance

• Management expects continued growth, leveraging omnichannel strategy, digitalization, and expansion in the South region.

• Margin expansion expected through operational leverage, logistics efficiency, and product mix optimization.

• New product launches and resumed private label production expected to boost sales.

• Expansion to continue, with 75% of 2025 locations already prospected and focus on southern Brazil.

• Digital sales expected to remain a key growth driver, with ongoing investments in omnichannel and logistics.