Brazil’s third biggest food retailer Grupo Mateus announced a 20.9% year-over-year increase in third-quarter net profit, to R$379.2 million (€62.3 milion).
The positive performance was driven by a 20.2% revenue growth to R$8.34 billion (€1.4 billion) and was driven by strategic adjustments and countermeasures to mitigate challenges.
While EBITDA rose 33.5% to R$684 million (€112 million) with an 8.2% margin, this was partly offset by a significant worsening of the financial result (-R$149.8 million).
Operating expenses increased by 15.9% to R$1.21 billion (€198.7 million). Capital expenditure on fixed assets decreased 35.1% to R$244.5 million (€40.1 million) due to fewer store openings.
Grupo Mateus opened four cash-and-carry stores in Maranhão, Ceará, Paraíba, and Pernambuco during the third quarter of 2024, compared to seven in the prior year.
A total of twelve stores opened year-to-date, including eight cash-and-carry stores, three supermarkets, and one electronics and furniture store. The network now comprises 268 outlets, of which 164 are food retail and 104 home appliance stores.
Quarterly Highlights
Same-store sales grew by a strong 7.7%, driven primarily by volume growth (over 80%). Maturing stores (operating for less than four years) accounted for 53% of the company’s revenue in the quarter.
Gross sales surged 20.7% to R$9.4 billion (€1.5 billion), but net debt increased to R$1.11 billion (€182.2 million) by the end of September, yielding a leverage ratio of 0.56x (net debt/adjusted EBITDA).
Although a R$525 million (€86.2 million) cash outflow resulted from the Novo Atacarejo acquisition (adding 34 stores), management expects strong fourth quarter sales to offset this.
Grupo Mateus strengthened its presence in the Northeast in May by acquiring Novo Atacarejo from the Assis family, expanding its operations in Pernambuco and Paraíba.
Grupo Mateus has operations in supermarket retail, cash and carry, wholesale, furniture and electronics, e-commerce, baking industry, and slicing and portioning central.
