Lojas Quero-Quero (LJQQ3) Q4 2024 earnings summary

Executive summary

• Revenue grew 11.2%–12% year-over-year in 2024, with Q4 gross revenue at BRL 831 million and same-store sales up 6.3%–7%; 22 new stores opened, totaling 573 units, with a focus on smaller cities and 275 stores still maturing.

• Adjusted EBITDA rose 48% for the year and 37% in Q4, reaching BRL 94 million, reflecting operational resilience despite macroeconomic and regional flood challenges.

• Digital and phygital channels contributed 25% of sales, mainly for products not stocked in stores.

• Net income for the year was flat at BRL 0.1 million, with adjusted net loss of BRL 18.1 million due to non-recurring items.

• Maintained focus on ESG, innovation, and community support, especially during severe floods in Rio Grande do Sul.

Financial highlights

• Gross profit increased 12.4% to BRL 928.1 million, with gross margin at 30.4% (+0.3p.p.); Q4 gross profit was BRL 229 million.

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

• Operating expenses rose 13.8%–14% due to expansion and inflation.

• Net debt ended the year at BRL 87.2 million, with leverage at 0.4x adjusted EBITDA.

• Tax credits of BRL 125.7 million recognized after favorable court ruling.

Outlook and guidance

• 2025 expected to be challenging due to high interest rates, but early-year SSS growth outpaced Q4 2024.

• Plans to open 20–30 new stores in 2025, focusing on proven locations and refurbishments.

• Expansion into premium format stores remains in pilot phase.

• Inflation expected to persist, supporting stable or slightly higher sales volumes.

• Focus remains on sustainable growth, operational cash flow, and financial discipline.