Groupe Dynamite (GRGD) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 revenue reached $958.5M, up 19.7% year-over-year, with Q4 revenue at $271.8M, up 13.1% (18.8% excluding the 14th week), driven by strong comps and new store openings.

• Comparable store sales grew 18.4% in Q4 and 18.5% for FY24, with Q4 comps up 9.5% and a two-year stack of 19.3%.

• Gross margin reached 62.8% for FY24, a 200 bps increase, and adjusted EBITDA margin rose to 31.6%, with Q4 adjusted EBITDA up 17% to $79.5M.

• Announced a normal course issuer bid to repurchase up to 1.3 million shares (10% of public float), signaling confidence in long-term value.

• Strategic focus on omnichannel expansion, U.S. distribution center launch, and disciplined capital allocation.

Financial highlights

• FY24 adjusted EBITDA was $303.3M (margin 31.6%), up 39.5% year-over-year; Q4 adjusted EBITDA margin improved to 29.2%.

• Net earnings for FY24 were $135.8M, up from $85.8M in FY23; Q4 net earnings increased by 8.5% to $31M.

• Free cash flow for FY24 was $163.7M, up 77.2% year-over-year; Q4 free cash flow was $55.3M.

• Net leverage ratio improved to 0.98x, with all outstanding borrowings repaid.

• Cash on hand over $74M and $312M available under credit facilities.

Outlook and guidance

• FY25 guidance: 18–20 new store openings (9–10 net new), 5.0–6.5% comparable store sales growth, adjusted EBITDA margin 30.3–32.3%, and CAPEX of $95–105M.

• Guidance includes $4–5M in incremental public company costs, impacting EBITDA margin by 40bps.

• Long-term target of ~350 stores by FY28, with international expansion into the UK starting FY26.

• Share buyback program to be executed in line with maintaining a disciplined capital structure.