Grupo Casas Bahia (BHIA3) Q4 2024 earnings summary

Executive summary

• Achieved five consecutive quarters of EBITDA margin improvement, reaching 8.0% in Q4'24, and record free cash flow over the last five years.

• Gross margin improved to 30.8% in Q4'24 (+3.2 p.p. y/y); annual gross margin at 30.8% (+2.9 p.p. y/y).

• Liquidity balance increased to R$4.0 billion at year-end (+R$882 million q/q, +R$415 million y/y).

• Transformation Plan in its 2nd phase, driving operational leverage, efficiency, and profitability despite a challenging market.

• Record-high employee engagement and recognition as a top employer contributed to productivity gains.

Financial highlights

• Q4'24 net revenue was R$7,981 million (+7.6% y/y); annual net revenue R$28,847 million (-5.7% y/y).

• Adjusted EBITDA in Q4'24 reached R$640 million (8.0% margin), up 300% y/y; net loss narrowed by 54.8% to R$452 million.

• Free cash flow in Q4'24 was R$1.2 billion (+R$1.4 billion q/q), annual free cash flow at R$1.0 billion, best in five years.

• SG&A/revenue improved by -2.4 p.p. vs Q4'23; SG&A reduced by R$384 million vs 2023.

• Monetization of tax credits contributed R$879 million.

Outlook and guidance

• 2025+ focus on sustained growth, value capture, and strategic expansion of credit and retail media.

• Management expects continued margin improvement and profitability growth through 2025, supported by operational efficiencies and Transformation Plan initiatives.

• CapEx for 2025 expected to remain at similar levels, focused on store refurbishments and supported by partnerships.

• If interest rates decrease, CapEx may increase, but current plans remain disciplined.

• Gradual growth in physical stores and more profitable digital operations expected.