Lojas Quero-Quero (LJQQ3) Q4 2023 earnings summary

Executive summary

• 2023 gross revenue, net of returns and rebates, rose 4.5% to R$2,747.9 million; expansion and financial services growth offset weaker same-store sales.

• Continued long-term investment, 28 store openings and a stable capital structure supported resilience amid high interest rates, inflation and weather disruptions.

Financial highlights

• Q4 gross revenue reached R$743.8 million, up 4.7% YoY; FY revenue was R$2,747.9 million, up 4.5%.

• Q4 net operating revenue was R$654.1 million, up 6.3%; FY net operating revenue was R$2,398.1 million, up 3.7%.

• Gross profit grew 10.3% to R$229.3 million in Q4 and 7.4% to R$826.0 million in FY23.

• Reported net income was R$60.2 million in Q4 and R$19.7 million for FY23; adjusted net income was R$9.5 million and an adjusted loss of R$16.9 million, respectively.

Outlook and guidance

• Strategy remains focused on long-term investment with short-term operating cash flow generation; expansion potential includes at least 123 additional cities in the southern states.

• Stores operating for under five years were described as retaining growth potential as they mature; 259 stores were under five years old at year-end.