Grazziotin (CGRA4) Q4 2024 earnings summary

Executive summary

• Net revenue grew 6.5% and net income increased 44.5% year-over-year in 4Q24, driven by sales growth and operational efficiency initiatives.

• All retail networks posted sales growth, with Grazziotin up 8.2%, Pormenos 6.4%, and Franco Giorgi 6%.

• Four new stores were opened and 11 were renovated, focusing on the most profitable units.

• Grazziotin Financeira's net income rose 7% year-over-year, with a 31% reduction in losses due to improved credit management.

• Grato Agropecuária expanded irrigated area by 65%, now totaling 7,661 hectares, supporting productivity gains.

Financial highlights

• 4Q24 net revenue: R$206.2 million, up 6.87% year-over-year; gross profit: R$107.6 million, up 25.83%.

• EBITDA: R$46.3 million, up 40.98% year-over-year; EBITDA margin: 22.45%, up 5.43 p.p.

• Net income: R$49.2 million, up 44.57% year-over-year; adjusted net income (excluding tax credits): up 11.2%.

• Gross margin: 52.17% (up 7.86 p.p.); net margin: 23.88% (up 6.23 p.p.).

• Cash and equivalents: R$207.2 million, up from R$168.7 million in 4Q23.

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.