Empreendimentos Pague Menos (PGMN3) Q4 2024 earnings summary

Executive summary

• Achieved record-breaking results in 2024, with strong growth in revenue, net income, and operational efficiency, driven by people, culture, and customer-centric strategies.

• Completed integration of Extrafarma, delivering significant synergies, operational improvements, and market share gains, especially in North and Northeast regions.

• 2024 marked a new growth phase, with leadership consolidation in key regions and robust customer engagement.

• Achieved fourth consecutive quarter of growth acceleration and profitability increase, with same store sales up 17.1% in 4Q24 and 13.0% for 2024.

Financial highlights

• Gross revenue in Q4 2024 reached R$3.6 billion, up 17.4% year-over-year; same store sales grew 17.1%.

• Adjusted EBITDA was R$164.0 million in 4Q24 (+31.6% vs. 4Q23) and R$628.5 million in 2024 (+32.0% vs. 2023), with margin up to 4.6%.

• Adjusted net income totaled R$77.1 million in 4Q24 (+22.8% vs. 4Q23) and R$152 million in 2024, up from R$14 million in 2023.

• Gross margin improved to 29.7% in 4Q24 (+0.5 p.p. vs. 4Q23), driven by better inventory management.

• Free cash flow for 2024 was R$226.9 million, a R$284.1 million improvement year-over-year, covering debt and acquisition obligations.

Outlook and guidance

• Plans to open at least 50 new stores in 2025, with expansion fully financed by operating cash generation.

• Continued focus on operational improvements, financial deleveraging, expense control, and leveraging digital and health platforms.

• Further Extrafarma banner conversions and private label launches expected to drive future sales.