C&A Modas (CEAB3) Q4 2024 earnings summary

Executive summary

• Achieved robust double-digit growth in apparel, with same-store sales up 14.4% in Q4 and 16.4% for the year, supported by operational agility, enhanced brand positioning, and digital expansion.

• Record adjusted net income of R$250.1 million in 4Q24, up 75.6% year-over-year, and R$452.5 million for 2024, reversing a prior year loss.

• Customer base expanded 7.6% in 2024, with NPS up by 6.8 points, reflecting improved customer experience.

• Beauty category revenue grew 74.3% year-over-year in Q4, supported by new kiosks and category expansion.

• Recognized with over 25 awards in 2024, including top rankings for brand preference, workplace quality, and ESG portfolios.

Financial highlights

• Consolidated net revenue reached R$7.64 billion in 2024, up from R$6.72 billion in 2023; gross profit increased to R$4.18 billion.

• Apparel SSS rose 14.4% in Q4 and 16.4% for the year; sales per m² increased 14.2%.

• Adjusted EBITDA margin (post-IFRS16) at 23.3% in 4Q24; adjusted EBITDA for the year was R$1,449.5 million (+33%).

• Net income for 2024 was R$452.5 million, compared to a net loss of R$6.8 million in 2023.

• Ended 2024 with R$1.6 billion in cash and net debt/EBITDA ratio reduced to 0.5x.

Outlook and guidance

• Expecting continued growth in sales per square meter, targeting a 35%-40% increase over the medium term.

• Gross margin for apparel projected to remain steady or see marginal gains in 2025, with FX and raw material costs as key variables.

• Capital allocation will prioritize store renovations, technology, and digital expansion, with a cautious approach to new store openings due to macroeconomic uncertainty.

• Management confirmed the company as a going concern, with no material uncertainties identified.