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, supported by the Transformation Plan's focus on profitability, operational efficiency, and debt restructuring.

• Revenue growth in Q4'24 was driven by both brick-and-mortar and e-commerce channels, with services and credit portfolios at record levels and liquidity improving to R$4.0 billion.

• Transformation Plan advanced to its second phase, emphasizing operational leverage, efficiency, and profitability amid a challenging macroeconomic environment.

• Recognized for brand strength and workplace quality, with awards from Folha de São Paulo, Estadão, and GPTW.

• Best cash generation in five years, with sequential improvement in operational profitability and market share.

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); consolidated gross revenue for 2024 was R$32,414 million (-5.9% y/y).

• 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).

• Adjusted EBITDA in Q4'24 reached R$640 million (8.0% margin), up from R$160 million (2.2%) in Q4'23; annual adjusted EBITDA was R$1,970 million (7.2% margin).

• Net loss in Q4'24 was R$452 million, a 54.8% improvement y/y; annual net loss R$1,045 million (-60.2% y/y).

• Free cash flow in Q4'24 was R$1.2 billion (+R$1.4 billion q/q), totaling R$1.0 billion for 2024, the highest in five years.

Outlook and guidance

• Focus for 2025+ is on sustained growth, value capture, and strategic expansion of credit and retail media, with continued operational efficiency through AI, CRM, and dynamic pricing.

• Gradual growth in physical stores and more profitable digital operations expected, supported by new credit facilities and FIDC.

• Management is confident in entering a new cycle of sustainable growth for 2025.