Grupo Mateus (GMAT3) Q3 2024 earnings summary

Executive summary

• Net income rose 20.9% year-over-year to BRL 379.2 million in 3Q24, with same-store sales up 7.7% and EBITDA margin at 8.2%.

• Net revenue increased 20.2% to BRL 8.3 billion in 3Q24, driven by store expansion and strong SSS performance.

• Opened 4 new stores in 3Q24, totaling 12 new stores in 2024, with continued expansion in the Northeast and plans for further openings.

• Multichannel strategy includes Cash & Carry, retail, mini markets, e-commerce, and specialized stores, tailored to each region.

• Fitch affirmed the company's AAA (bra) rating with a stable outlook.

Financial highlights

• Gross revenue reached BRL 9.4 billion in 3Q24, up 20.7% year-over-year; same-store sales grew 7.7%.

• Gross margin improved to 22.7% in 3Q24, up 0.2 p.p. year-over-year.

• EBITDA (post IFRS 16) was BRL 684.5 million in 3Q24 (+33.5% YoY), margin at 8.2%.

• Net income for 9M24 (excluding extraordinary effects) was BRL 967 million (+15.2% YoY).

• Operating expenses in 3Q24 were BRL 1.2 billion, 14.6% of net revenue, down 0.5 p.p. YoY.

Outlook and guidance

• Management expects continued growth in new store openings, with several under construction and further margin expansion in the Northeast.

• Focus on operational efficiency, cash cycle improvement, and store maturation to sustain margin gains.

• Optimism for Q4 with strong sales expected from Black Friday, Christmas, and New Year campaigns.