Technos (TECN3) Q4 2024 earnings summary

Executive summary

• Net revenue reached R$400.3 million in 2024, up 16.9% year-over-year and 23.6% in 4Q24, driven by strong sales volume and stable prices across brands and channels.

• Gross revenue for 4Q24 was R$159.9M, up 24.7% year-over-year; full-year gross revenue grew 17.3% to R$464.3M.

• Net income for 2024 was R$64.8 million, a 15.3% increase year-over-year; Q4 net income rose 3.5% versus 4Q23.

• Adjusted EBITDA for the year was R$93.2 million, up 7.4% year-over-year, with 17 consecutive quarters of growth.

• Technos celebrated its 100th anniversary, reinforcing its legacy and commitment to innovation.

Financial highlights

• Gross profit reached R$218.9 million, up 15.6% year-over-year; Q4 gross profit increased 20.2%.

• Gross margin for 2024 was 54.7%, down 0.6 p.p. year-over-year, mainly due to exchange rate increases.

• SG&A expenses rose 12.4% to R$146.1 million; Q4 SG&A up 14.5%.

• Net financial result was positive at R$18.3 million, supported by higher present value adjustment revenue and lower FX/hedging expenses.

• Interim dividends of R$15.0 million were paid in January 2025, yielding 4.36%.

Outlook and guidance

• Plans for 2025 include continued focus on growth with efficiency, market share gains in traditional watches, and expansion in smartwatches.

• Ongoing investment in expanding distribution channels across wholesale and retail to drive future revenue and operational gains.