Brazilian retailer Grupo Pão de Açúcar (GPA) saw its losses more than triple in the fourth quarter of 2024, to R$1.1 billion (€183.3 million), due to strategic restructuring and exceptional provisions.
Of the total, R$737 million (€122.8 million) realtes to continued operations and R$367 million (€61.2 million) to the company's discontinued operations.
Despite these setbacks, revenue increased 6.9%, reaching R$5.22 billion (€870 million), while total sales grew by 6.3% to R$5.6 billion (€933 million), up 9.6% on a like-for-like basis.
Pão de Açúcar and Extra chains led sales with R$2.82 billion (+10.2%) and R$1.82 billion (+10.3%), respectively, and proximity stores contributed R$619 million (+4.9%).
E-commerce sales saw 16.2% revenue growth during the quarter, accounting for 12.2% of total food sales.
Adjusted EBITDA increased 25.4% year on year to R$498 million (€83 million), while the adjusted EBITDA margin rose from 8.1% in the fourth quarter of 2023 to 9.5% from in corresponding quarter in 2024 to reach the highest level since 2020. Adjusted capex amounted to R$178 million.
During the quarter, GPA recorded an increase of 0.6 percentage points in market share in the state of São Paulo, consolidating two years of continuous growth.
Performance Highlights
GPA expanded its store network to 726, adding 29 new outlets during the quarter and a total of 60 over the past 12 months.
The fourth quarter openings included 14 Minuto Pão de Açúcar stores, 12 Mini Extra stores, and three Pão de Açúcar Fresh stores. In the same period, 43 existing stores were revitalised.
During an analyst conference call, GPA’s leadership announced the expansion of its premium brand offerings, the increase of market share of private-label brands like Qualitá, and the launch of a new premium private-label brand as key priorities for 2025.
The retailer also aims to grow its Minuto Pão de Açúcar and Extra neighbourhood stores, focusing on margin improvement and e-commerce growth, particularly in perishables, which account for 35% of online sales.
To further enhance profitability, GPA implemented a change in promotional schedules, shifting from weekly to monthly events, beginning in January 2025.
GPA anticipates estimated savings of approximately R$100 million (€16.7 million) in 2025 from its restructuring efforts, as well as improved EBITDA conversion through efficiency gains and controlled investments.
