Grupo Multi (MLAS3) Q4 2024 earnings summary

Executive summary

• 2024 marked a year of operational recovery and normalization, with a focus on portfolio renewal, cost optimization, and discontinuation of unprofitable lines after a challenging 2023.

• Net revenue for 2024 was R$3.4B, down 3.2% year-over-year, with consolidated net revenue at R$3.4B and current operations at R$3.3B.

• Gross profit surged 311.7% year-over-year to R$786.3M, with gross margin rebounding to 24.1% for current operations and 23.2% for consolidated operations.

• EBITDA turned positive in 2024, reaching R$41.4M, reversing a loss of R$658.5M in 2023, mainly due to a strong fourth quarter.

• Net loss narrowed to R$321.2M, with 78%–80% of the loss attributed to FX impacts from real depreciation in Q4.

Financial highlights

• Q4 2024 net revenue was R$962.9M, up 18.9% sequentially and 14.5% year-over-year, driven by strong growth in current operations and manufacturing projects.

• Gross margin for 2024 was 24.1% for current operations and 23.2% for consolidated operations, up significantly from 2023.

• EBITDA margin improved to 1.2% in 2024 from -18.8% in 2023.

• Net cash position at year-end was R$96.8M, with cash and equivalents at R$744.6M.

• Inventory book value reduced by R$24.1M compared to Q4 2023.

Outlook and guidance

• Focus for 2025 is on profitability, margin improvement, and conservative procurement and inventory management.

• Continued growth expected in manufacturing projects, with new partnerships (e.g., Royal Enfield) starting production in 1Q25.

• Expense reduction, logistics optimization, and structural reviews remain top priorities.

• FX volatility and macroeconomic risks remain, but hedging and price pass-through strategies are in place.