Grupo Casas Bahia (BHIA3) Q1 2025 earnings summary

Executive summary

• Achieved 6th consecutive quarter of EBITDA margin improvement, reaching 8.2% (+2.1 p.p. vs Q1'24), with consolidated GMV up 10.2% to R$10.7 billion and strong physical store and marketplace performance.

• Same-store sales increased 17.7% y/y, with a 1.6 p.p. offline market share gain and physical stores GMV up 16.2%.

• Active BNPL/Installment plan portfolio reached R$6.1 billion (+R$777 million y/y), with improved delinquency indicators.

• Transformation Plan in 2nd phase, focusing on operational leverage, efficiency, and cost control, with continued investment in technology.

• Net loss of R$408 million, mainly due to higher financial expenses, but free cash flow positive at R$917 million over the last 6 months.

Financial highlights

• Consolidated/net revenue grew 10.1% y/y to R$6.99 billion; services revenue up 11.9% y/y; financial solutions revenue up 18.4% y/y.

• Gross margin improved to 30.2% (+0.2 p.p. y/y); SG&A/revenue improved by 1.7 p.p. y/y to 23.1%.

• Adjusted EBITDA increased 47.3% y/y to R$570 million; adjusted EBITDA margin at 8.2%.

• Net financial expenses rose 89.7% to R$922 million, representing 13.2% of net revenue.

• 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 digital transformation.

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

• Emphasis on operational efficiency, cost control, leveraging AI, CRM, and dynamic pricing.