Grupo Mateus (GMAT3) Q4 2024 earnings summary

Executive summary

• Opened 15–16 new stores in 2024 across 11 cities and five states, expanding sales area by 7.8% and focusing on innovation and service enhancements, especially in Recife Boa Viagem.

• Ended 2024 with 272 stores, serving over 4,400 cities and 45,000 clients monthly, supported by 18 distribution centers.

• Northeast and Pará market share rose by 2.8 p.p. to 26.1% in 2024, with 34 stores operating in the region and expansion now representing 20% of the store network and 34% of retail sales.

• Net revenue in 4Q24 rose 15.7% year-over-year to BRL 8.7 billion; 2024 net revenue up 19.8% to BRL 32.1 billion.

• Net income excluding extraordinary effects increased 16.9% in 4Q24 to BRL 388.0 million; 2024 net income up 12.7% to BRL 1.35 billion.

Financial highlights

• FY2024 gross revenue totaled BRL 36.4 billion (+20.3%), with same-store sales up 6.9% and gross margin at 22.6% (+0.2 p.p.).

• Annual EBITDA reached BRL 2.5 billion, up 26.2% year-over-year, with a margin of 7.8% (+0.4 p.p.), and 4Q24 EBITDA margin at 8.4% (+0.9 p.p.).

• Gross profit for 2024 was BRL 7.3 billion (+21.2%), with gross margin improving to 23.0% in 4Q24.

• Net income for 2024 was BRL 1,385 million, with net margin at 4.2%; 4Q24 net income was BRL 388 million, net margin 4.4%.

• Cash generation in 4Q24 was BRL 500 million; cash and cash equivalents at year-end were BRL 1.7 billion.

Outlook and guidance

• Ongoing disciplined expansion with new store openings planned for early 2025 in PE, MA, PA, PI, CE, SE, and BA.

• Focus remains on profitability over volume, maintaining a strong cash position, and reversing below-expectation trends.

• Effective income tax rate expected to stabilize around 18–19% going forward.