Grupo Mateus (GMAT3) Q2 2024 earnings summary

Executive summary

• Gross revenue reached BRL 8.7 billion in Q2 2024, up 19.5% year-over-year, with net revenue at BRL 7.6 billion and same-store sales growth of 4.8%.

• Net profit excluding extraordinary effects was BRL 347.5 million in Q2 2024, up 18%, with a net margin of 4.5%.

• EBITDA (ex-extraordinary) reached BRL 565.2 million in Q2 2024, up 17.2% year-over-year, with a margin of 7.4%.

• Five new stores opened in Q2 2024, expanding presence in the Northeast and bringing the total to 264 stores.

• Cash conversion cycle improved by 8 days year-over-year, now at 74 days.

Financial highlights

• Gross profit in Q2 2024 was BRL 1.7 billion (+18.6%), with a gross margin of 22.4%, stable year-over-year.

• Net revenue for 1H24 reached BRL 15.0 billion, up 22.2% year-over-year; 1H24 EBITDA (ex-extraordinary) was BRL 1.1 billion (+19.6%).

• Operational expenses in Q2 2024 were BRL 1.162 billion, representing 15.1% of net revenue, with improved cost control.

• Net Debt/EBITDA ratio was 0.3x at the end of Q2 2024, reflecting low leverage.

• Cash and equivalents at quarter-end were BRL 1.2 billion; net debt was BRL 583.8 million.

Outlook and guidance

• Continued focus on expansion, especially in the Northeast, with new store openings and route densification.

• Ongoing efforts to improve operational efficiency, margin resilience, and profitability.

• Management expects further growth in the second half, supported by campaigns and expansion.