Grupo Mateus (GMAT3) Q1 2025 earnings summary

Executive summary

• Net revenue reached BRL 8.3 billion in 1Q25, up 12.9% year-over-year, with same-store sales growing 7.1% (adjusted for leap year effect).

• Net income rose 32.5% to BRL 318.6 million, with net margin improving by 0.5 percentage points to 3.8%.

• EBITDA increased 27.4% to BRL 649.9 million, with margin up 0.9 percentage points to 7.8%.

• Expansion continued with four new stores opened in 1Q25, expanding selling area by 8.0%, and 16 projects underway.

• Wholesale (B2B) and Cash & Carry segments led revenue growth, while Electronics & Furniture declined.

Financial highlights

• Gross profit reached BRL 1.92 billion, up 16.2% year-over-year, with gross margin up 0.7 percentage points to 23.0%.

• Operating expenses totaled BRL 1.3 billion, 15.2% of net revenue, down 0.2 percentage points year-over-year.

• Effective income tax rate was 12.3% in 1Q25.

• Cash and equivalents at quarter-end were BRL 1.5 billion.

• Cash conversion cycle improved to 74 days, with inventory at 92 days.

Outlook and guidance

• Continued focus on store expansion, operational efficiency, and profitability, especially in the Northeast and North regions.

• Expansion plan includes new stores in Maranhão, Bahia, Ceará, Pará, and other states, with 16 construction projects ongoing.

• Management highlights ongoing efforts to mitigate tax impacts and maintain strong cash generation.