Grupo SBF (SBFG3) Q3 2024 earnings summary

Executive summary

• Achieved record LTM EBITDA of R$748 million (+35% year-over-year) and net profit of R$388.4 million (+165% year-over-year), with a margin of 10.5% and net revenue up 3.9% to R$7.1 billion.

• 3Q24 gross profit rose 7.1% to R$890.7 million, gross margin expanded 3.9 p.p. to 50.3%, and net profit grew 71.8% to R$121.1 million.

• Operating cash generation in 3Q24 was R$272.4 million, up 149.7% year-over-year, supporting a 62.5% reduction in net debt to R$583.8 million and leverage down to 0.78x.

• The company is ahead of its 30-month strategic plan, focusing on cash generation, deleveraging, and net profit maximization.

• Strategic focus on profitability, operational efficiency, and improved working capital and inventory management.

Financial highlights

• 3Q24 net revenue was R$1.77 billion (-1.3% year-over-year); 9M24 net revenue reached R$4.98 billion (+2.5%), and LTM net revenue was R$7.1 billion (+3.9%).

• 3Q24 adjusted EBITDA was R$201.1 million (+18.7%), margin 11.4% (+2.0 p.p.); LTM EBITDA was R$747.7 million (+34.5%).

• 3Q24 net profit was R$121.1 million (+71.8%), LTM net profit R$388.4 million (+165%).

• Gross margin reached 50.3% in 3Q24 (+3.9 p.p.); Centauro gross margin 50.4% (+3.3 p.p.), Fisia 45.2% (+3.4 p.p.).

• Net working capital reduced 32.3% year-over-year, with inventory days down and receivables days down 33.4%.

Outlook and guidance

• Management reaffirms the 30-month strategic plan focused on expanding gross profit, EBITDA, net profit, deleveraging, and cash generation.

• Focus remains on operational efficiency, inventory optimization, and value creation for shareholders.

• No major changes to the strategic plan; growth in store openings and new concepts will be gradual and based on proven returns.

• Currency impacts are being managed, and no significant royalty increases are expected until 2028.