Grazziotin (CGRA4) Q3 2024 earnings summary

Executive summary

• Achieved solid performance in 3Q24 despite consumer spending slowdown, driven by sales growth, cost control, and team commitment.

• Net revenue rose 15.8% year-over-year, with a 31.45% reduction in credit losses and 25.2% increase in cash availability.

• EBITDA margin grew 29.08% year-over-year, reflecting improved efficiency and expense rationalization.

• Ended the quarter with 355 stores, expanding presence and customer proximity.

Financial highlights

• Net revenue: R$161.3M, up 15.8% from 3Q23; gross profit: R$79.3M, up 15.2% year-over-year.

• Net income: R$24.1M, up 109.8% year-over-year; net margin: 14.94% vs. 8.20% in 3Q23.

• EBITDA: R$27.4M, margin 16.98% (down from 33.3% in 3Q23 due to reclassification of logistics costs).

• Cash and equivalents: R$174.97M, up from R$168.7M in 3Q23.

• Same-store sales grew 12.34% year-over-year; new stores contributed 1.84% of 3Q24 sales.

Outlook and guidance

• Ongoing store openings and renovations focused on high-performing regions to enhance customer experience.

• Irrigation project at Grato Agropecuária expected to start operations in 4Q24, aiming to boost productivity and sustainability.