Grupo Mateus (GMAT3) Q3 2024 earnings summary

Executive summary

• Opened 12 new stores in Q3, with a total of 24 stores opened in the last 12 months, and a merger expected to add 33 more by year-end, marking the largest expansion in company history.

• Multichannel strategy includes cash and carry, retail, mini-markets, e-commerce, and specialized stores, tailored to regional markets and supported by logistics investments.

• Anniversary and regional marketing campaigns drove strong sales, contributing to over 7% same-store sales growth and a 20%+ increase in gross revenue year-over-year.

• Maintained resilience in gross margins and EBITDA despite tax changes and competitive pressures.

• Fitch affirmed National Long-Term Rating at AAA (bra), Stable outlook.

Financial highlights

• Gross revenue reached BRL 9.4 billion in Q3, up 20.7% year-over-year; accumulated revenue for the year at BRL 26.5 billion, up 22.3%.

• Same-store sales grew 7.7% year-over-year, with Cash & Carry segment recovering to 5.4% growth.

• Gross margin improved to 22.7% in Q3, up 0.2 p.p. year-over-year.

• EBITDA margin reached 8.2% in Q3, with EBITDA of BRL 684.5 million, up 33.5% year-over-year.

• Net income for Q3 was BRL 379.2 million, up 20.9% year-over-year, with a margin of 4.5%.

Outlook and guidance

• Optimistic for Q4, expecting continued strong same-store growth, supported by Black Friday, Christmas, and New Year campaigns.

• Expansion strategy to continue, with over 50 stores expected by year-end and further investments in logistics and distribution centers.

• Focus on store maturation, operational efficiency, and improving cash cycle and working capital.