Lojas Renner (LREN3) Q4 2024 earnings summary

Executive summary

• Achieved 9.7% sales growth in Q4 2024 and 8.2% for the year, marking the fifth consecutive quarter of growth, driven by increased transaction volume and pieces sold, surpassing market averages.

• Record free cash flow generation: BRL 613 million in Q4 and BRL 1.5 billion for the year, with a robust cash position of BRL 2.8 billion and net cash of BRL 1.8 billion at year-end.

• Completed the largest investment cycle in company history, shifting future investments toward growth, digitalization, and omni-channel operations.

• 20 million active customers in the ecosystem and improved NPS across all business units.

• Announced share buyback program of about BRL 1 billion, up to 75 million shares (~7% of free float).

Financial highlights

• Retailing net revenue reached BRL 12,672 million for FY 2024, up 8.2% year-over-year; Q4 revenue was BRL 4,174.8 million, up 9.7%.

• Adjusted EBITDA grew 19% year-over-year in Q4; full-year adjusted EBITDA up 26% to BRL 2.6 billion, with margin at 20.9%.

• Free cash flow reached a record BRL 1.5 billion for the year.

• Recurring net income increased 30% year-over-year; full-year net income up 22.6%.

• Gross margin improved by up to 0.9 percentage points year-over-year, reaching 55.4% for FY 2024.

Outlook and guidance

• Expectation to continue growing above market average with healthy margins and strong inventory management.

• 2025 to see 25–35 new store openings, mainly in new cities, with a focus on Renner and Youcom brands.

• R$ 850 million in CAPEX planned for 2025, focused on refurbishments and new stores.

• Ongoing digitalization and completion of e-commerce migration to the new distribution center by Q2 2025.

• Dividend payout ratio of 53% and share buyback program totaling around R$ 1 billion.