Lojas Quero-Quero (LJQQ3) Q4 2024 earnings summary

Executive summary

• Gross revenue grew 12% in Q4 2024 and 11.2% for the year, with retail sales up 10% and SSS up 7% in Q4; 22 new stores opened, totaling 573 units, despite macroeconomic challenges and regional floods.

• Adjusted EBITDA increased 48% for the year and 37% in Q4, reflecting operational resilience.

• Digital and phygital channels contributed 25% of sales, focusing on exclusive products.

• Recognized as Top Employer Brazil 2024 and received multiple ESG and industry awards.

• Financial services, especially VerdeCard, were key differentiators, with transaction volume up 18.8% and stable delinquencies.

Financial highlights

• Gross profit reached R$928.1 million in 2024 (+12.4%), with gross margin at 30.4% for the year and 30.9% in Q4.

• Adjusted EBITDA for 2024 was R$94.1 million (+48.3% YoY), with a margin of 3.5%; Q4 margin was 5.4%.

• Net income for the year was R$0.1 million; adjusted net income showed a loss of R$18.1 million due to non-recurring items.

• Adjusted net debt at year-end was R$87.2 million, with Net Debt/EBITDA at 0.4x.

• Operating expenses rose 13.8% in 2024, mainly due to expansion and inflation.

Outlook and guidance

• 2025 is expected to remain challenging due to high interest rates, but early-year SSS growth outpaced Q4 2024.

• Plans to open around 20 new stores in 2025, focusing on proven locations and maintaining team readiness.

• Expansion into premium formats is in pilot phase, with no immediate plans for broader rollout.

• Focus remains on operating cash flow, financial discipline, and leveraging the maturity curve of newer stores.

• Inflation is expected to persist in 2025, supporting stable or slightly higher sales volumes.