Grupo Casas Bahia (BHIA3) Q1 2025 earnings summary

Executive summary

• Achieved sixth consecutive quarter of EBITDA/operating margin improvement, reaching 8.2% (+2.1 p.p. y/y), driven by transformation plan execution and disciplined strategy.

• Total GMV grew by R$1 billion (+10.2% y/y) to R$10.7 billion, with physical stores up 16.2% and e-commerce GMV up 2.4%; same-store sales increased 17.7% y/y.

• Net revenue increased 10.1% y/y to R$6.99 billion, with gross margin up 0.2 p.p. to 30.2%.

• Net loss was R$408 million, a 56.3% improvement y/y, mainly due to higher financial expenses.

• Free cash flow for the last six months reached R$917 million, the best in five years, despite a negative R$322 million in the quarter.

Financial highlights

• Consolidated revenue grew 10.1% y/y; services revenue up 11.9% y/y; financial solutions revenue up 18.4% y/y.

• Adjusted EBITDA increased 47.3% y/y to R$570 million; adjusted EBITDA margin at 8.2% (up 2.1 p.p. y/y).

• Gross profit was R$2.1 billion, with gross margin at 30.2% (+0.2 p.p. y/y).

• Net finance costs rose 89.7% to R$922 million, mainly due to higher interest rates.

• Net loss margin was (5.8%), 170 bps higher than Q1'24.

Outlook and guidance

• Focus on sustained growth in B&M stores, BNPL, and digital channels, with continued margin improvement and operational efficiency.

• Strategic expansion of credit, disciplined execution of the Transformation Plan, and leveraging AI, CRM, and dynamic pricing.

• Inventory build-up anticipates higher sales volumes in the first half of 2025, especially for Mother's Day.