Grupo Mateus (GMAT3) Q4 2024 earnings summary

Executive summary

• Opened 16 new stores in 2024 across 11 cities and five states, expanding the sales area by 7.8% and focusing on innovation and service enhancements, especially in Recife Boa Viagem.

• Ended 2024 with 272 stores, serving over 4,400 cities and 45,000 clients monthly, supported by 18 distribution centers.

• Net revenue grew 19.8% to R$32.1 billion, with same-store sales up 6.9%.

• Northeast and Pará market share rose by 2.8 p.p. to 26.1% in 2024, with 34 stores operating in the region.

• Expansion in the Northeast now represents 20% of the store network and 34% of retail sales.

Financial highlights

• FY2024 EBITDA (post-IFRS 16, excluding extraordinary effects) increased 26.2% to R$2.5 billion, margin at 7.8% (+0.4 p.p. YoY).

• Net income (excluding extraordinary effects) was R$1.35 billion, up 12.7% year-over-year, with net margin at 4.2%.

• Gross profit for 2024 was R$7.3 billion (+21.2%), with gross margin improving to 22.6%.

• 4Q24 EBITDA (post-IFRS 16) was R$730.3 million (+30.1% YoY), margin 8.4%.

• Operating expenses in 2024 were 14.9% of revenue, reflecting improved discipline.

Outlook and guidance

• Focus remains on disciplined expansion, profitability, and maintaining a strong cash position, with a capital budget for 2025 set at R$824.5 million mainly for store expansion and IT.

• Ongoing expansion with new store openings in early 2025, including locations in PE, MA, PA, PI, CE, SE, and BA.

• Effective income tax rate expected to stabilize around 18-19% going forward.

• Management prioritizes profitability over volume amid inflation and higher sales taxes in the Northeast.

• Continued focus on consolidating presence in the Northeast region.