Grupo SBF (SBFG3) Q4 2024 earnings summary

Executive summary

• Achieved record gross revenue of R$9.0 billion in 2024, a CAGR of 23.0% since 2019, surpassing strategic targets and delivering strong operational execution.

• Adjusted net profit (ex-IFRS) rose 83.3% year-over-year to R$417.5 million, with a CAGR of 22.6% since 2019.

• EBITDA (ex-IFRS/adjusted) grew 27.3% to R$772.4 million, with margin up 2.1 p.p. to 10.8%.

• Net debt reduced by 59.0% to R$295.7 million, with leverage dropping to 0.38x from 1.19x.

• Leadership transition announced, with Gustavo Furtado set to become CEO.

Financial highlights

• Net revenue increased 2.3% year-over-year to R$7.15 billion.

• Adjusted gross profit increased 6.6% to R$3.52 billion, with gross margin up 2.0 p.p. to 49.2%.

• Operating cash flow for 2024 was R$949.9 million, up 86.0% year-over-year.

• CAPEX for the year totaled R$261.1 million, a 1.3% increase over 2023, focused on store refurbishments and technology.

• Free cash flow in 2024 was R$473.2 million.

Outlook and guidance

• Management targets further integration of business units and omnichannel expansion in 2025.

• Expects gradual recovery in Fisia's wholesale channel in the second half of 2025.

• Focus remains on operational efficiency, sustainable growth, and leveraging strategic partnerships.

• Conservative inventory and purchasing planning for 2025, with readiness to capitalize on market opportunities.

• Ends 2024 with greater efficiency and profitability, reinforcing the foundation for sustainable growth.