Technos (TECN3) Q3 2024 earnings summary

Executive summary

• Net revenue reached R$94.7M in 3Q24, up 17.8% year-over-year, driven by strong sales volume growth of 19.7% and market share gains in traditional watches.

• Adjusted EBITDA increased 5% to R$21.1M, marking the 15th consecutive quarter of growth.

• Gross profit rose 15% to R$52.5M, with gross margin declining 1.3 p.p. to 55.4% due to FX impacts and provisions.

• Net income was R$12.9M, stable year-over-year as sales growth offset the absence of prior year non-recurring gains.

• Net cash position improved to R$17.5M at quarter-end.

Financial highlights

• Gross revenue for 3Q24 was R$109.7M, up 19.3% year-over-year; net revenue up 17.8%.

• Gross margin for the quarter was 55.4%, a decrease of 1.3 p.p. year-over-year due to higher dollar and inventory provisions.

• SG&A expenses rose 16.5% to R$36.7M, mainly from higher sales-related costs and marketing.

• Adjusted EBITDA margin for 3Q24 was 22.2%, down from 24.9% in 3Q23.

• Net cash position at R$17.5M, with cash of R$124.5M and gross debt of R$107.0M.

Segment performance

• Sales volume reached 510,000 units in 3Q24, up 19.7% year-over-year, with average price per unit stable at R$215.

• Retail operations include 16 stores and five e-commerce sites, supporting brand building and inventory management.