Grazziotin (CGRA4) Q4 2024 earnings summary

Executive summary

• Net revenue grew 7.65% year-over-year to R$728.6 million, with net income up 44.5% in 4Q24 and 9.41% for the year, driven by sales growth, operational efficiency, and non-recurring tax credits.

• All retail networks posted sales growth; Grazziotin up 13.6%, Pormenos 6.4%, Franco Giorgi 6%, and GZT 6.38%.

• 13 new stores were opened and 37 renovated, ending the year with 356 stores and 2,828 employees.

• Grazziotin Financeira's net income rose 64.6% year-over-year, with a 31% reduction in losses and improved credit management.

• Grato Agropecuária expanded irrigated area by 65%, but El Niño caused a 50% drop in corn production and pressured margins.

Financial highlights

• 4Q24 net revenue: R$206.2 million, up 6.87% year-over-year; annual net revenue: R$728.6 million, up 7.65%.

• EBITDA: R$46.3 million in 4Q24 (up 40.98% YoY); annual EBITDA: R$141.5 million (up 9.52% YoY); EBITDA margin: 22.45% in 4Q24, 19.42% for the year.

• Net income: R$49.2 million in 4Q24 (up 44.57% YoY); annual net income: R$104.6 million (up 9.41% YoY); adjusted net income (excluding tax credits): up 11.2%.

• Gross margin: 52.8% for the year; 52.17% in 4Q24 (up 7.86 p.p.); net margin: 23.88% in 4Q24, 14.4% for the year.

• Cash and equivalents: R$207.2 million, up from R$168.7 million in 2023.

Outlook and guidance

• Continued focus on store modernization, operational efficiency, and expansion aligned with consumer needs.

• Grato Agropecuária expects improved productivity from expanded irrigation, though agricultural margins remain pressured by low commodity prices.

• Grazziotin Financeira will adjust credit pricing to mitigate impacts from new regulatory provisions.