Grupo Mateus (GMAT3) Q1 2025 earnings summary

Executive summary

• Net revenue reached BRL 8.3 billion in Q1 2025, up 12.9% year-over-year, with same-store sales growing 7.1% and nominal growth of BRL 1.0 billion.

• Net income rose 32.5% to BRL 319 million, with net margin improving by 0.5 percentage points to 3.8%.

• EBITDA increased 27.4% to BRL 650 million, margin up 0.9 percentage points to 7.8%, with margin expansion despite calendar effects and ongoing expansion.

• Expansion continued with 16 projects underway and four new stores opened in Q1 2025, bringing the total to 276 units and increasing selling area by 8%.

• Wholesale (B2B) and Cash & Carry segments led revenue growth, while Electronics & Furniture declined.

Financial highlights

• Gross profit totaled BRL 1.92 billion, up 16.2% year-over-year, with gross margin at 23.0%, up 0.7 percentage points.

• Operating expenses grew 11.2% to BRL 1.3 billion, but fell as a percentage of net revenue to 15.2%.

• Effective income tax rate was 12.3% in Q1 2025.

• Cash generation was BRL 316 million, with cash balance at quarter-end of BRL 1.5 billion.

• Cash conversion cycle was 74 days, stable year-over-year.

Outlook and guidance

• Continued focus on margin over volume, with expectations for further improvement in working capital and stock management throughout 2025.

• Expansion to continue with disciplined CapEx, 16 construction projects ongoing, and a focus on store maturity and profitability, especially in new regions.

• Indirect (distribution) channel expected to deliver recurring growth and margin contribution as transformation continues.

• Management highlights operational efficiency and profitability, especially in the Northeast branch.

• Continued market share gains in Northeast and Pará.