C&A Modas (CEAB3) Q4 2024 earnings summary

Executive summary

• Achieved record adjusted net income of R$250.1 million in 4Q24, up 75.6% year-over-year, and R$298.9 million for 2024, reversing a prior year loss.

• Apparel net revenue grew 14.4% in 4Q24 and 16.4% for the year, with strong SSS and digital sales performance.

• Beauty category revenue surged 74.3% year-over-year in 4Q24, driven by kiosk expansion and assortment.

• Customer base expanded 7.6% in 2024, with NPS up 6.8 points, reflecting enhanced customer experience.

• Recognized with over 25 awards in 2024, including inclusion in IDIVERSA, ICO2, and IBRX100 portfolios, and top employer and brand preference rankings.

Financial highlights

• Consolidated net revenue reached R$2,552.1 million in 4Q24, up 11.3% year-over-year; full-year revenue grew 13.7%.

• Adjusted EBITDA margin post-IFRS16 reached 23.3% in 4Q24; pre-IFRS16 EBITDA for the year was R$1,000 million.

• Gross margin for apparel was 56.6% in 4Q24, a record, and consolidated gross margin reached 54.9%.

• Adjusted net income for 4Q24 was R$250.1 million, up 75.6% from 4Q23.

• CAPEX in 2024 totaled R$359.7 million, a 67.1% increase year-over-year, focused on store revamps and digital initiatives.

Outlook and guidance

• Management expects continued growth in 2025, driven by strategic execution, digital expansion, and disciplined capital allocation.

• Gross margins expected to remain steady or improve, with macroeconomic headwinds such as FX and cost inflation being closely monitored.

• Capital allocation will prioritize store renovations, technology, and omni-channel integration, with new store openings evaluated cautiously.