In This Article:
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Adjusted EBITDA Margin: 9.5%, highest since 2020.
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Same Store Sales Growth: 9.6% increase.
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Revenue: BRL5.6 billion in Q4, 6.3% growth year-over-year.
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Gross Margin: 27.2%, up 0.2 percentage points from Q4 2023.
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Net Debt Reduction: 40% reduction, leverage at 1.6 times EBITDA.
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Proximity Format Growth: 14.4% increase, supported by 59 new stores.
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e-Commerce Growth: 16.2% increase, revenue of BRL625 million.
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Net Loss: BRL737 million in Q4, impacted by non-recurring items.
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Free Operating Cash Flow: BRL256 million generated over the last 12 months.
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Store Expansion: 29 new stores opened in Q4, totaling 60 new stores in 2024.
Release Date: February 19, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Companhia Brasileira De Distribuicao (CBDBY) achieved a historic milestone with a 9.5% adjusted EBITDA margin, the highest since 2020.
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Same-store sales performance grew by 9.6%, with notable growth in Pao de Acucar and Extra Mercado at 10.2% and 10.3% respectively.
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E-commerce sales increased by 16.2%, reinforcing leadership in both own channels and partner platforms.
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The company reduced net debt by 40%, bringing financial leverage down to 1.6 times EBITDA from 10.6 times in Q2 2022.
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Significant expansion with the opening of 59 new Proximity stores in the last 12 months, contributing to a 14.4% growth in this format.
Negative Points
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The company recorded a net loss of BRL737 million in Q4 2024, impacted by non-recurring items and restructuring costs.
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Closure of three Pao de Acucar stores and three Proximity stores as part of portfolio optimization affected total results.
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The gross margin expansion slowed down in Q4 2024 due to increased promotions and a mix shift towards lower-margin categories.
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Contingencies related to PIS COFINS and other taxes remain significant, with ongoing legal discussions and potential cash disbursements.
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Proximity format same-store sales growth was flat during Q4, not following the positive trend seen in other formats like Extra Mercado.
Q & A Highlights
Q: What are the expectations for cash conversion and leverage reduction in 2025? A: Rafael Russowsky, CFO, explained that the company expects improvements in cash conversion through increased EBITDA and balanced CapEx investments. The focus is on efficiency and growth, particularly from new store openings, which should enhance cash conversion and reduce leverage throughout 2025.
Q: Are there opportunities for gross margin improvement, and what is the potential of retail media? A: CEO Marcelo Pimentel highlighted ongoing efforts in store clusterization, category management, and pricing strategies to improve margins. Retail media has doubled its revenue and is expected to continue growing, contributing significantly to gross margin improvements.