3Q24 RESULT
Results videoconference | Click hereto access the event |
November 12, 2024 | Videoconference in Portuguese with |
08:00 a.m. (EST) | simultaneous translations into English |
10:00 a.m (BRT) |
3Q24 Results
November 11, 2024
Net income reached BRL 379.2 million in 3Q24, with SSS at 7.7%, and EBITDA margin of 8.2%
3Q24 and 9M24 Highlights:
Net revenue grows 20.2%, totaling BRL 8.3 billion in 3Q24, with same-storesales growth of 7.7%. In 9M24, net revenue reached BRL 23.4 billion, up by 21.5% (SSS: 7.3%).
Gross profit reaches BRL 1.9 billion, 21.3% higher than 3Q23. Gross margin recorded at 22.7%, an improvement of
0.2 p.p. vs 3Q23. Gross profit totaled BRL 5.3 billion (+22.3%) in 9M24, with a gross margin of 22.5%.
Operational expenses in 3Q24 totaled BRL 1.2 billion, accounting for 14.6% of the net revenue in the quarter, 0.5
- bellow 3Q23. During the 9M24, the expenses reduced 0.1 p.p. as a net revenue percentage vs 9M23.
EBITDA (post IFRS 16) rises by 33.5% to BRL 684.5 million, with an EBITDA margin of 8.2%. In 9M24, EBITDA, excluding extraordinary effects, totaled BRL 1.8 billion (+24.7%), with an EBITDA margin of 7.5%.
Northeast Branch EBITDA margin (post IFRS 16) increases again and reaches 6.4% (LTM).
Income tax and social contribution effective rate stood at 14% in 3Q24. During 9M24, reached 9%
Net income increases 20.9%, totaling BRL 379.2 million. In 9M24, net income, excluding extraordinary effects, totaled BRL 967.0 million, an increase of 15.2%.
Distribution of interest on equity (IoE) announcement, in the total gross amount of BRL
100.4 million in September.
Opening of 4 Cash & Carry stores in 3Q24 (Maranhão, Ceará, Paraíba, and Pernambuco). Year- to-date, 12 stores have been opened (8 cash & carry stores, 3 supermarket stores, and 1 electronics & furniture store)
Credit risk rating agency Fitch Ratings has affirmed the Company's National Long-TermRating at AAA (bra), with a Stable outlook.
Highlights (BRL million) | 3Q24 | 3Q23 | Var. (%) | 9M24 | 9M23 | Var. (%) |
Gross Revenue (1) | 9,431 | 7,813 | 20.7% | 26,465 | 21,641 | 22.3% |
Deductions | (1,059) | (878) | 20.7% | (3,009) | (2,408) | 25.0% |
PIS/COFINS on investment subsidies | (35) | 0 | - | (97) | 0 | - |
Total deductions | (1,094) | (878) | 24.6% | (3,106) | (2,408) | 29.0% |
Net revenue | 8,337 | 6,935 | 20.2% | 23,358 | 19,232 | 21.5% |
SSS (%)(2) | 7.7% | 4.3% | 3.4 p.p. | 7.3% | 8.4% | -1,1 p.p. |
Gross profit (3) | 1,894 | 1,561 | 21.3% | 5,256 | 4,299 | 22.3% |
Gross margin (3) | 22.7% | 22.5% | 0.2 p.p. | 22.5% | 22.4% | 0.1 p.p. |
EBITDA (post IFRS 16) ex extraordinary effects (4) | 684 | 513 | 33.5% | 1,760 | 1,411 | 24.7% |
EBITDA margin (post IFRS 16) ex extraordinary effects (4) | 8.2% | 7.4% | 0.8 p.p. | 7.5% | 7.3% | 0.2 p.p. |
Earnings before taxes | 439 | 314 | 39.9% | 1,043 | 864 | 20.7% |
Income Tax and Social Contribution | (160) | 0.4 | - | (393) | (19) | 1938.8% |
Interest on Equity tax credits | 34 | 0,0 | - | 113 | 0,0 | - |
Accumulated tax loss compensation | 61 | (0.7) | - | 120 | 2,1 | - |
Deferred income tax and social contribution on provisions | 5 | 0,0 | - | 65 | 0,0 | - |
Total income tax and social contribution | (60) | (0) | - | (96) | (17) | 457.8% |
Net income | 379 | 314 | 20.9% | 947 | 847 | 11.9% |
Net income excluding extraordinary effects (5) | 379 | 314 | 20.9% | 967 | 839 | 15.2% |
- Gross Revenue = Gross revenue from goods + Gross revenue from services - Returns and cancellations
- SSS: Growth in same-store sales. This is comprised of sales in stores in activity for more than 13 months compared to the same period in the previous year. Consolidated SSS considers stores of all formats (cash & carry, electronic & furniture and supermarket), including wholesale/B2B sales from distribution centers in activity for more than 13 months
- Considers the reallocation of Other revenues negotiated with suppliers, from Other Revenues (Expenses) to COGS, aligned with market practices
- Excludes extraordinary effects accounted in the 9M24 and 9M23. 9M24: (i) impact of the understanding established by the Superior Court of Justice (STJ) that the value of ICMS by tax substitution (ICMS-ST) does not generate a calculation basis for PIS/COFINS credits on the acquisition of goods for resale; and (ii) tax gain from previous periods, mainly related to PIS/COFINS credits on essential operating expenses. 9M23: (i) tax gain from PIS/COFINS credits on essential operating expenses; (ii) provisions for tax and labor-related lawsuits from previous periods; and (iii) correction of IPI ancillary obligations related to the period from 2018 to 2022. As presented in the 2Q24 and 2Q23 earnings releases.
- Excludes extraordinary effects recognized in the EBITDA of 9M23 and 9M24, as well as the impact on Income Tax and Social Contribution from previous years recognized in 2Q23 and 2Q24. As presented in the 2Q23 and 2Q24 earnings releases.
2
3Q24 Results | |||||||
November 11, 2024 | |||||||
Highlights by Format | |||||||
3Q24 | 3Q23 | Var. (%) | 9M24 | 9M23 | Var. (%) | ||
Cash and Carry | |||||||
Gross sales (1) (BRL million) | 5,304 | 4,210 | 26.0% | 14,752 | 11,631 | 26.8% | |
SSS (2) (%) | 5.4% | 0.4% | 5.0 p.p. | 4.8% | 5.9% | -1,1 p.p. | |
Number of stores | 88 | 69 | 19 | 88 | 69 | 19 | |
Openings | 4 | 5 | -1 | 8 | 11 | -3 | |
Sales area (,000 m²) | 392 | 321 | 22.0% | 392 | 321 | 22.0% | |
Supermarkets | |||||||
Gross sales (1) (BRL million) | 2,164 | 2,047 | 5.7% | 6,254 | 5,681 | 10.1% | |
SSS (2) (%) | 2.9% | 4.7% | -1.8 p.p. | 4.4% | 9.0% | -4.6 p.p. | |
Number of stores | 76 | 72 | 4 | 76 | 72 | 4 | |
Openings | 0 | 1 | -1 | 3 | 2 | 1 | |
Sales area (,000 m²) | 127 | 124 | 3.0% | 127 | 124 | 3.0% | |
Furniture and Electronics | |||||||
Gross sales (1) (BRL million) | 337 | 316 | 6.4% | 913 | 845 | 8.1% | |
SSS (2) (%) | 4.2% | 7.0% | -2.8 p.p. | 5.9% | -0.3% | 6.2 p.p. | |
Number of stores | 104 | 105 | -1 | 104 | 105 | -1 | |
Openings | 0 | 1 | -1 | 1 | 3 | -2 | |
Sales area (,000 m²) | 99 | 100 | -0.9% | 99 | 100 | -0.9% | |
Wholesale (B2B) | |||||||
Gross sales (1) (BRL million) | 1,625 | 1,236 | 31.5% | 4,559 | 3,501 | 30.1% | |
Sales representatives | 4,143 | 3,430 | 713 | 4,143 | 3,430 | 713 | |
Routes | 289 | 210 | 79 | 289 | 210 | 79 | |
City zones | 1,646 | 1,552 | 94 | 1,646 | 1,552 | 94 | |
Distribution Centers | 19 | 17 | 2 | 19 | 17 | 2 | |
Consolidated | |||||||
Gross sales (1) (BRL million) | 9,430 | 7,809 | 20.8% | 26,479 | 21,658 | 22.3% | |
SSS (2) (%) | 7.7% | 4.3% | 3.4 p.p. | 7.3% | 8.4% | -1.1 p.p. | |
Number of stores | 268 | 246 | 22 | 268 | 246 | 22 | |
Openings | 4 | 7 | -3 | 12 | 16 | -4 | |
Sales area (,000 m²) | 519 | 446 | 16.4% | 520 | 448 | 16.1% |
- Gross merchandise revenue is not net of returns and does not include service revenue. This concept differs from that presented in the highlight table on page 2.
- SSS: Same-store sales growth. It comprises sales from stores that have been open for more than 13 months compared to the same period in the previous year. In the consolidated total, it includes stores of all formats, including wholesale/B2B sales from distribution centers opened for more than 13 months. By segment, it considers sales from stores of each format type that have been opened for more than 13 months compared to the same period in the previous year. For wholesale/B2B, it includes sales from distribution centers opened for more than 13 months.
Expansion plan
During 3Q24, Grupo Mateus opened four cash & carry stores across four states: one in Maranhão (Barreirinhas), Ceará (Caucaia), Paraíba (João Pessoa), and Pernambuco (Caruaru). In total, 24 stores were opened in the last 12 months, wich represented a 16.4% increase in sales area compared to 3Q23. As a result, the company ended the quarter with 164 food retail stores and 104 electronics and furniture stores.
88 stores / +9 9M24 | 34 stores | 42 stores / +3 9M24 | 104 stores / +1 9M24 |
3
3Q24 Results
November 11, 2024
In 3Q24, the maturing stores (operating for less than 4 years) represented 53% of the Company's revenue in the quarter.
% Sales breakdown by store age | |||||
13% | 16% | 16% | 14% | 13% | |
16% | 17% | 14% | 11% | 10% | |
30% | 26% | 27% | 29% | 30% | |
40% | 40% | 43% | 46% | 47% | |
3Q23 | 4Q23 | 1Q24 | 2Q24 | 3Q24 | |
More than 4 years | 2 to 3 years | 1 year | Less than 1 year |
Northeast Branch
In 2021, the Company began its expansion into the Northeast Region, aligned with its strategic plan to foster route consolidation. Within this context, operations started in Ceará, Bahia, Paraíba, Alagoas, Pernambuco, and Sergipe. By the end of September, 46 stores were already operating in major cities or capitals within these six states, with 27 of them having been in operation for over 13 months.
In 3Q24, the number of stores opened for more than 13 months in the new regional represented 16.5% of the total food retail stores, with 17 stores having been opened for over 1 year (13 to 23 months of operation), 8 for more than 2 years (from 24 to 35 months of operation) and 2 with more than 3 years (more than 36 months of operation). In the quarter, approximately 96% of these stores showed gross margin expansion compared to 3Q23, showing the strength of Mateus' value proposition in more competitive markets and alignment with the expected maturation curve.
Northeast Branch EBITDA1 margin evolution
6.0% | 6.4% | |||
5.5% | ||||
5.4% | ||||
4.8% | ||||
4.5% | ||||
4.1% | ||||
3.8% | ||||
12M23 | LTM (Apr/23-Mar/24 | LTM (Jul/23 - Jun/24) | LTM (Oct23 - Sep/24) | ||
Pre IFRS 16 | Post IFRS 16 | ||||
# stores | 15 stores | 18 stores | 22 stores | 27 stores |
(1) EBITDA margin for the Northeast Region considers general and administrative expenses proportional to stores opened for more than 13 months in the EBITDA calculation.
4
3Q24 Results
November 11, 2024
Consolidate gross revenue from goods
(BRL billion)
Gross revenue from good in 3Q24 increased 20.8% and reached BRL 9.4 billion. This performance is the result of the opening of 24 stores in the last 12 months and the 7.7% growth in same-store sales (SSS), which expanded 2.9 p.p. versus 2Q24. It is worth noting that gross revenue from goods were mainly driven by the increase in the sale of Cash & Carry and Wholesale (B2B), which expanded 26.0% and 31.5%, respectively, compared to 3Q23.
7.8
+20.8%
9.4
8.6 8.4 8.7
+22.3%
26.5
21.7
Year-to-date, gross revenue from goods grew 22.3% and totaled BRL 26.5 billion, with a same-store sale performance of +7.3%.
3Q23 4Q23 1Q24 2Q24 3Q24
9M23 9M24
SSS 4.3% 8.8% 9.6% 4.8% 7.7%
8.4% 7.3%
Gross revenue from goods - Cash & Carry
(BRL billion)
In 3Q24, Cash & Carry gross revenue reached BRL 5.3 billion, an increase of 26.0%, when compared to 3Q23. The segment represented 56.2% of the total gross revenue from goods.
The performance of the Cash & Carry is mainly driven by the opening of 19 stores of the format in the last 12 months and a 5.4% growth in same-store sales during the quarter, reflecting the good performance of the Group's anniversary campaign, carried out in August and September.
Year-to-date, gross revenue grew 26.8% and totaled BRL 14.8 billion, with a same-store performance of +4.8%.
+26.0% | |||
5.3 | |||
4.2 | 4.8 | 4.7 | 4.8 |
3Q23 4Q23 1Q24 2Q24 3Q24
SSS 0.4% 5.7% 7.2% 2.0% 5.4%
+26.8%
14.8
11.6
9M23 9M24
5.9% 4.8%
Gross revenue from goods - Supermarket
(BRL billion)
Gross revenue from goods in Supermarket segment, which includes supermarkets, hypermarkets and neighborhood stores, reached BRL 2.2 billion, 5.7% higher than in 3Q23, and represented 22.9% of the Group's revenue in the
quarter. Sales of Hyper/Supermarket and Camiño grew by 9.6% and 4.1% in the | +5.7% |
period, respectively. |
+10.1%
6.3
5.7
Even without the opening of new stores since 1Q22, Camiño format continued to show a positive same-store performance, whose growth was 4.1%. In the last 12 months, 4 supermarket stores were opened, which contributed to the performance of the segment. SSS from Hyper/Super stores was 2.4% in the quarter. The growth in same-store sales also benefited from the anniversary campaign held in 3Q24.
2.2
2.1 | ||
2.0 | 2.0 | 2.1 |
3Q23 4Q23 1Q24 2Q24 3Q24
SSS 4.7% 5.4% 8.4% 2.1% 2.9%
9M23 9M24
9.0% 4.4%
In 9M24, Supermarket gross revenue was BRL 6.3 billion, which represented an increase of 10.1%. The performance of the SSS in the period was 4.4%.
Gross revenue from goods - Furniture & Electronics
(BRL million)
Furniture & Electronics segment recorded gross revenue of BRL 336.8 million in 3Q24, with a growth of 6.4%, having represented 3.6% of the Group's sales in the quarter. The same-store sales increased by 4.2%, even with the strong comparison basis of 7.0% in 3Q23.
In 9M24, Furniture & Electronics gross revenue increased by 8.1% and totaled BRL 913.1 million. The same-store sales growth was 5.9%.
+8.1% | ||||||
913.1 | ||||||
+6.4% | 845.0 | |||||
316.4 | 338.7 | 261.0 | 315.4 | 336.8 | ||
3Q23 | 4Q23 | 1Q24 | 2Q24 | 3Q24 | 9M23 | 9M24 |
SSS 7.0% | 14.8 | 9.5% | 4.7% | 4.2% | -0.3% | 5.9% |
5
3Q24 Results
November 11, 2024
Gross revenue from goods - Wholesale (B2B)
(BRL billion)
During 3Q24, Wholesale (B2B) gross revenue reached BRL 1.6 billion, which represented an increase of 31.5% compared to 3Q23. The segment accounted for
17.2% of the Group's revenue in the period. | +31.5% | |
The continued good pace of growth is mainly driven by 20.8% increase in the | 3.5 | |
number of the Group's sales representatives and the inauguration of 4 DCs | 1.6 | |
throughout the second half of 2023, which resulted in the opening of 79 routes | 1.4 | 1.5 |
1.4 | ||
in the last 12 months, in addition to the good performance of the anniversary | 1.2 | |
campaign carried out in the quarter.
+30.1%
4.6
The segment's gross revenue was BRL 4.6 billion in 9M24, 30.1% more than the | 3Q23 4Q23 1Q24 2Q24 3Q24 9M23 9M24 |
same period of the previous year. |
Gross Profit
In BRL thousands | 3Q23 | 4Q23 | 1Q24 | 2Q24 | 3Q24 | 9M23 | 9M24 |
Gross profit (previous concept) | 1,524,368 | 1,647,245 | - | - | - | 4,165,683 | - |
Gross margin (previous concept) | 22.0% | 21.8% | - | - | - | 21.7% | - |
(+) Revenues negotiated with suppliers | 36,358 | 45,057 | - | - | - | 126,224 | - |
Gross profit (considering the revenues negotiated with suppliers) | 1,560,726 | 1,692,302 | 1,649,755 | 1,712,464 | 1,893,923 | 4,298,534 | 5,256,141 |
Gross margin (considering the revenues negotiated with suppliers) | 22.5% | 22.4% | 22.3% | 22.4% | 22.7% | 22.4% | 22.5% |
In 3Q24, gross profit reached BRL 1.9 billion, an increase of 21.3% compared to the same period last year. Gross margin was 22.7% and expanded 0.2 p.p. compared to 3Q23. Despite the extended duration of the Group's anniversary campaign into September, the evolution in store maturation within the Northeast region, along with profitability improvement initiatives in locations across Maranhão, Pará, and Piauí, facilitated an expansion in gross margin in 3Q24 versus 3Q23.
Year-to-date, gross profit increased 22.3% and totaled BRL 5.3 billion, while gross margin increased 0.1 p.p..
Operating Expenses
In BRL thousands | 3Q24 | 3Q23 | Var. (%) | 9M24 | 9M23 | Var. (%) |
Selling Expenses | (1,102,000) | (930,687) | 18.4% | (3,197,344) | (2,556,580) | 25.1% |
General and Administrative Expenses | (112,934) | (117,896) | -4.2% | (309,315) | (341,547) | -9.4% |
Total Operating Expenses | (1,214,934) | (1,048,583) | 15.9% | (3,506,660) | (2,898,127) | 21.0% |
Total Operating Expenses/Net Revenue | 14.6% | 15.1% | -0,5 p.p. | 15,0% | 15.1% | -0,1 p.p. |
During 3Q24, operating expenses totaled BRL 1.2 billion, 15.9% higher than in 3Q23. In the quarter, operating expenses accounted for 14.6% of net revenue, a reduction of 0.5 p.p. compared to the same period last year.
Selling expenses grew 18.4% and reached BRL 1.1 billion, mainly due to the opening of 24 stores and 3 distribution centers in the last 12 months. While the administrative expenses line decreased 4.2% when compared to 3Q23 and totaled BRL 112.9 million. This reduction results from increased productivity in the administrative offices, driven by the review and automation of some internal processes. For example, digitizing the travel process has led to significant savings for the group.
In 9M24, operating expenses grew 21.0% and totaled BRL 3.5 billion, reducing 0.1 p.p. as a percentage of revenues and representing 15.0% of net revenues in the period.
6
3Q24 Results
November 11, 2024
EBITDA
In BRL thousands | 3Q24 | 3Q23 | Var. (%) | 9M24 | 9M23 | Var. (%) |
Net Income | 379,170 | 313,597 | 20.9% | 946,891 | 846,521 | 11.9% |
(+) Income tax and social contribution | 59,993 | 383 | - | 95,752 | 17,165 | 457.8% |
(+) Financial result | 149,824 | 100,048 | 49.8% | 409,198 | 276,912 | 47.8% |
EBIT | 588,987 | 414,028 | 42.3% | 1,451,841 | 1,140,598 | 27.3% |
(+) Depreciation and Amortization | 95,494 | 98,528 | -3.1% | 285,374 | 288,674 | -1.1% |
EBITDA (post IFRS 16) | 684,481 | 512,556 | 33.5% | 1,737,215 | 1,429,272 | 21.5% |
EBITDA margin (post IFRS 16) | 8.2% | 7.4% | 0.8 p.p. | 7.4% | 7.4% | 0.0 p.p. |
Total extraordinary effects (1) | - | - | - | 22,453 | (18,026) | -224.6% |
EBITDA (post IFRS 16) ex total extraordinary effects | 684,481 | 512,556 | 33.5% | 1,759,668 | 1,411,246 | 24.7% |
EBITDA margin (post IFRS 16) ex total extraordinary effects | 8.2% | 7.4% | 0.8 p.p. | 7.5% | 7.3% | 0.2 p.p. |
(-) Leasing depreciation | (41,459) | (38,534) | 7.6% | (119,876) | (104,466) | 14.8% |
(-) Leasing financial expense | (57,862) | (45,536) | 27.1% | (162,305) | (117,905) | 37.7% |
EBITDA (pre IFRS 16) ex total extraordinary effects | 585,160 | 428,486 | 36.6% | 1,477,487 | 1,188,875 | 24.3% |
EBITDA margin (pre IFRS 16) ex total extraordinary effects | 7.0% | 6.2% | 0.8 p.p. | 6.3% | 6.2% | 0.1 p.p. |
- Excludes extraordinary effects recognized in the 9M24 and 9M23. 9M24: (i) impact of the understanding established by the Superior Court of Justice (STJ) that the value of ICMS by tax substitution (ICMS-ST) does not generate a calculation basis for PIS/COFINS credits on the acquisition of goods for resale; and (ii) tax gain from previous periods, mainly related to PIS/COFINS credits on essential operating expenses. 9M23: (i) tax gain from PIS/COFINS credits on essential operating expenses; (ii) provisions for tax and labor- related lawsuits from previous periods; and (iii) correction of IPI ancillary obligations related to the period from 2018 to 2022. As presented in the 2Q24 and 2Q23 earnings releases.
EBITDA post IFRS 16 totaled BRL 684.5 million in 3Q24, 33.5% higher than in 3Q23. EBITDA margin post IFRS 16 increased
0.8 p.p. and reached 8.2%. This outcome reflects sales growth, gross margin expansion and dilution of expenses in the quarter.
In 9M24, EBITDA post IFRS 16, excluding total extraordinary effects, was BRL 1.8 billion, an increase of 24.7% compared to the same period last year and an expansion of 0.2 p.p. in the EBITDA margin post IFRS 16, which reached 7.5%.
33.5% | ||||
684 | ||||
513 | 561 | 565 | ||
510 |
3Q23 | 4Q23 | 1Q24 | 2Q24 | 3Q24 | |
EBITDA margin (post IFRS 16) | 7.4% | 7.5% | 6.9% | 7.4% | 8.2% |
excluding total one-offs effects | |||||
Financial Results
In BRL thousands | 3Q24 | 3Q23 | Var. (%) | 9M24 | 9M23 | Var. (%) |
Financial revenues | 58,966 | 63,855 | -7.7% | 185,102 | 189,830 | -2.5% |
Financial expenses | (150,928) | (118,367) | 27.5% | (431,995) | (348,837) | 23.8% |
Leasing financial expenses | (57,862) | (45,536) | 27.1% | (162,305) | (117,905) | 37.7% |
Net financial results | (149,824) | (100,048) | 49.8% | (409,198) | (276,912) | 47.8% |
Financial revenue amounted to BRL 59.0 million, a decrease of 7.7% when compared to 3Q23. Financial expenses totaled BRL 150.9 million, 27.5% higher than the same period of 2023. This increase is the result of the growth in credit card percentage expenses driven by the increase in sales, in addition to higher interest expenses on loans and financing, reflecting the rise in the basic interest rate. Lastly, financial expense of leasing reached BRL 57.9 million, 27.1% higher than 3Q23, driven by the opening of 24 stores and 2 DCs in the last 12 months.
7
3Q24 Results
November 11, 2024
The financial result reached BRL 149.8 million in 3Q24, corresponding to 1.8% of net revenue for the period. In 9M24, the Group's financial result amounted to BRL 409.2 million and represented 1.8% of net revenue for the period.
Net Income
In BRL thousands | 3Q24 | 3Q23 | Var. (%) | 9M24 | 9M23 | Var. (%) |
Net profit before income tax and social contribution | 439,163 | 313,980 | 39.9% | 1,042,643 | 863,686 | 20.7% |
Income tax and social contribution | (160,103) | 353 | - | (393,387) | (19,295) | 1938.8% |
Interest on Equity tax credits | 34,135 | - | - | 112,724 | - | - |
Accumulated tax loss compensation | 61,101 | (736) | - | 119,712 | 2,130 | 5520.3% |
Deferred income tax and social contribution on provisions | 4,875 | - | - | 65,199 | - | - |
Total income tax and social contribution | (59,993) | (383) | 15547,5% | (95,752) | (17,165) | 457.8% |
Effective income tax rate (%) | 13.7% | 0.1% | 13.6 p.p. | 9.2% | 2.0% | 7.2 p.p. |
Net income | 379,170 | 313,597 | 20.9% | 946,892 | 846,521 | 11.9% |
Total extraordinary effects (1) | - | - | - | 20,125 | (7,415) | -371.4% |
Net profit ex extraordinary effects (1) | 379,170 | 313,597 | 20.9% | 967,017 | 839,106 | 15.2% |
Net margin (%) | 4.5% | 4.5% | 0.0 p.p. | 4.1% | 4.4% | -0.3 p.p. |
- Excludes extraordinary effects recognized in the EBITDA of 9M23 and 9M24, as well as the impact on Income Tax and Social Contribution from previous years recognized in 2Q23 and 2Q24. As presented in the 2Q23 and 2Q24 earnings releases.
Net income in 3Q24 reached BRL 379.2 million, an increase of 20.9% compared to 3Q23, as a result of EBITDA improvement and the redesign of the Company's tax planning. Year-to-date, net income, excluding extraordinary effects, was BRL 967.0 million, up by 15.2% compared to 9M23. The net margin reached 4.1%.
Provisional Measure 1,185, converted into Law 14,789/23, in force since January 1, 2024, changed the rules regarding the taxation of investment subsidies. Considering these changes, the Company would have to recognize an income tax amounting to BRL 149.3 million. To mitigate these effects, the Group continued to improve the following countermeasures:
- interest on equity distribution, which totaled BRL 100.4 million and benefited the income tax in BRL 34.1 million; ii) accumulated tax compensation from previous periods, amounting to BRL 179.7 million with a positive effect of BRL 61.1 million. As a result, the income tax effective rate stood at 13.7% in 3Q24.
Working Capital (12 months) and Cash Flow
At the end of 3Q24, the Group's working capital stood at 82 days, a 4-days decrease when compared to the same period last year. The trade payables improved 3 days compared to 3Q23 and ended the quarter at the level of 45 days. The inventory level was stable at 91 days, as well as the trade receivables line was stable at 37 days. The inventory level was impacted by the continuation of anniversary promotional campaigns throughout September, as well as preparation for fourth- quarter sales.
Working capital (in days)
Stable | ||||||||||||||
- 4 days | ||||||||||||||
Stable | + 3 days | 91 | 89 82 | 84 | 91 | 86 | 82 | |||||||
77 | 74 | 74 | ||||||||||||
53 | 45 | 45 | ||||||||||||
37 | 42 | 35 | 35 | 37 | 42 | 44 | ||||||||
Trades receivable | Trades payable | Inventory | Working capital |
3Q23 | 4Q23 | 1Q24 | 2Q24 | 3Q24 |
8
3Q24 Results
November 11, 2024
In 3Q24, despite the consistent operating cash generation of BRL 485.8 million, working capital needs and capex activities led to a cash consumption of BRL 525.7 million, driven by the increased investment in inventory, as previously explained, in addition to the investment in the Company's expansion plan.
(525.7)
(293.3)
(232.4)
-583.8 | |||||||
485.8 | |||||||
-877.1 | 12.1 | ||||||
-244.5 | -1,109.5 | ||||||
47.4 | |||||||
-826.6 | |||||||
Net Debt | Working | Recoverable taxes | FFO - Funds | Net Debt | CAPEX | Sales of | Net Debt |
Jun24 | Capital | and other assets | from Operation | Sep24 | fixed assets | Sep24 | |
and liabilities |
Indebtedness
In BRL thousands | Sep/24 | Dec/23 | Sep/23 |
Gross debt | (1,808,303) | (1,779,384) | (1,778,653) |
Cash and cash equivalents | 698,687 | 1,289,138 | 1,116,813 |
Financial investments | 112 | 882 | 824 |
Net Debt | (1,109,504) | (489,364) | (661,016) |
Net Debt /LTM Adjusted EBITDA (pre IFRS 16) | 0.56x | 0.30x | 0.44x |
The Company's net debt totaled BRL 1.1 billion at the end of September 2024, mainly due to higher investment in inventory, which led to a reduction in the Company's cash. The adjusted Net Debt/EBITDA ratio pre-IFRS 16 stood at 0.56x at the end of 3Q24.
Investments
In BRL thousands | 3Q24 | 3Q23 | Var. (%) | 9M24 | 9M23 | Var. (%) |
New stores | 194,715 | 305,304 | -36.2% | 664,197 | 633,254 | 4.9% |
Land | 5,636 | 7,472 | -24.6% | 128,563 | 95,571 | 34.5% |
Infrastructure, DC, IT and others | 2,424 | 40,344 | -94.0% | 35,433 | 101,234 | -65.0% |
Refurbishments and maintenance | 41,727 | 23,885 | 74.7% | 75,894 | 50,916 | 49.1% |
Total | 244,502 | 377,005 | -35.1% | 904,087 | 880,975 | 2.6% |
Sale of fixed assets | (12,082) | (84,700) | -85.7% | (27,669) | (124,367) | -77.8% |
Total | 232,420 | 292,305 | -20.5% | 876,418 | 756,608 | 15.8% |
During 3Q24, the Company invested BRL 244.5 million in fixed assets, a decrease of 35.1% compared to 3Q23. This reduction is the result of lower investment in New Stores, driven by the lower number of stores opened throughout 3Q24 (4 stores) versus the same period last year (7 stores). In addition, the CAPEX allocated to Infrastructure, DCs, IT and Others in 3Q24 was also lower, as there were no distribution center openings as occurred in 3Q23. Excluding the amount related to the sale of fixed assets, CAPEX decreased by 20.5% in the quarter.
9
3Q24 Results
November 11, 2024
In 9M24, investment in fixed assets was BRL 904.1 million, 2.6% higher than in 9M23, driven by the increase in investment in New Stores and Land, partially offset by the drop in CAPEX for Infrastructure, DCs, IT and Others, given the strong basis of comparison in 2023, when 6 new DCs were opened versus 1 DC in 2024.
Also, in 9M24, BRL 664.2 million were invested in new stores, of which BRL 327.2 million are related to stores opened until September 2024 and BRL 337.0 million are from stores under construction. As for the Land line, which totaled BRL 128.6 million, BRL 40.4 million correspond to land with stores in operation, while the remaining BRL 88.2 million refer to land intended for future stores.
Caruaru - PE
10