Lojas Quero-Quero (LJQQ3) Q4 2024 earnings summary

Executive summary

• Consolidated gross revenue grew 11.2%–12% in 2024, with Q4 revenue at R$831.3 million and SSS up 6.3%–7%; 22 new stores opened, totaling 573 units.

• Adjusted EBITDA increased 48.3% for the year and 37% in Q4, reaching R$94.1 million, reflecting operational resilience despite macroeconomic and climate challenges.

• Net profit was R$0.1 million, with Adjusted Net Income showing a loss of R$18.1 million due to non-recurring items.

• Digital and phygital channels contributed 25% of sales, and the company received multiple ESG and employer recognitions.

• Overcame significant operational disruptions from floods in Rio Grande do Sul, with all affected stores reopened by June.

Financial highlights

• Gross profit rose 12.4% to R$928.1 million, with gross margin at 30.4% for the year and 30.9% in Q4.

• Adjusted EBITDA margin improved to 3.5% for the year and 5.4% in Q4.

• Operating expenses increased 13.8%–14% year-over-year, mainly due to expansion and inflation.

• Net debt at year-end was R$87.2 million, with Net Debt/EBITDA at 0.4x.

• Tax credits of R$125.7 million recognized, with R$28.2 million used in 2024.

Outlook and guidance

• Management expects continued sustainable growth, leveraging maturing stores and ongoing expansion, with 20 new stores planned for 2025.

• Focus remains on operating cash flow, financial discipline, and long-term investment.

• Expansion into premium formats is in pilot phase, with no immediate plans for broader rollout.

• Inflation and high interest rates expected to persist, impacting demand and funding costs.