PBG (PTBL3) Q4 2024 earnings summary

Executive summary

• Achieved consolidated net revenue of R$2.4 billion in 2024, up 9.9% year-over-year, with all business units contributing to growth and outpacing the Brazilian market.

• Pro forma EBITDA rose 31.0% to R$358.6 million, while pro forma net loss was R$64.1 million for the year, mainly due to higher financial expenses and depreciation.

• International expansion advanced, with Portobello America growing net revenue by 30.8% in 2024 and 48.3% in 4Q24, consolidating US presence and reaching break-even EBITDA.

• Operational optimization and disciplined capital allocation supported EBITDA growth, improved leverage, and included non-recurring impacts of R$45.1 million in 4Q24.

• Domestic market volume grew 18.1% in 2024, outpacing the Brazilian ceramic tile market's 3.9% growth.

Financial highlights

• Net revenue: R$631.7 million in 4Q24 (+13.6% vs. 4Q23); R$2.4 billion in 2024 (+9.9% vs. 2023).

• Pro forma EBITDA: R$82.6 million in 4Q24 (+26.2% vs. 4Q23); R$358.6 million in 2024 (+31.0% vs. 2023).

• Pro forma net loss: R$27.3 million in 4Q24; R$64.1 million in 2024, impacted by higher financial expenses and depreciation.

• Cash conversion cycle reduced to 29 days in 4Q24 (-40.4% vs. 4Q23), reflecting improved working capital management.

• Net debt at year-end was R$1.0 billion, with pro forma leverage at 2.8x EBITDA.

Outlook and guidance

• 2025 strategy focuses on operational acceleration, free cash flow generation, deleveraging, and further internationalization, especially in the US.

• Continued expansion of Portobello Shop and digital channels; Pointer to leverage competitiveness and volume growth.

• CapEx to remain disciplined, supporting operational sustainability and growth, with no major increases until deleveraging targets are met.

• Expectation of gross margin and EBITDA expansion in 2025 as plant stabilization and product mix improvements take effect.