Grupo Mateus (GMAT3) Q2 2024 earnings summary

Executive summary

• Gross revenue reached BRL 8.7 billion in Q2 2024, up 19.5% year-over-year, with BRL 1.4 billion incremental revenue and 4.8% same-store sales growth.

• Net profit excluding extraordinary effects was BRL 347.5 million, up 18% year-over-year, with a net margin of 4.5%.

• First half 2024 gross revenue reached BRL 17 billion, reflecting a 23% CAGR since IPO in 2020.

• Expansion included 5 new stores in Q2 2024, with ongoing growth in the Northeast and a total of 264 stores.

• Northeast Branch annualized EBITDA margin improved to 6.0%, reflecting ongoing profitability improvements.

Financial highlights

• EBITDA margin reached 7.4% in Q2 2024 (BRL 565 million), up 17% year-over-year; semester EBITDA was BRL 1.1 billion at 7.2%.

• Gross margin held steady at 22.4% for both the quarter and semester, despite tax and competitive pressures.

• Operational expenses in Q2 were BRL 1.162 billion, representing 15.1% of net revenue, with improved cost control.

• Cash conversion cycle improved by 8 days year-over-year, now at 74 days.

• Net revenue for 1H24 reached BRL 15.0 billion, up 22.2% year-over-year (SSS: 7.1%).

Outlook and guidance

• Management remains optimistic for continued growth in the second half, supported by expansion, operational efficiency, and profitability improvements.

• Continued store expansion planned, with new openings scheduled in MA, PB, PE, and CE.

• Ongoing initiatives to further improve working capital and expense management.