Q3 2024 Lojas Quero-Quero SA Earnings Call Transcript
Key Points
- Lojas Quero-Quero SA (BSP:LJQQ3) reported a 14% growth in retail sales, totaling 587 million, indicating strong market performance.
- The company opened six new stores in Q3 2024, bringing the total to 568 stores, showcasing its expansion strategy.
- Digital sales accounted for 26% of total sales, highlighting the effectiveness of their digital platforms.
- The company achieved a 27.8% growth in EBITDA, reflecting strong operational performance and cost control.
- Lojas Quero-Quero SA maintained a healthy credit portfolio with a 15% growth and a delinquency rate of 11.2%, showing effective credit management.
- The adjusted net profit was close to zero, indicating challenges in translating sales growth into net profitability.
- Despite the growth, the company faced a 4.4% increase in operating expenses, which could impact future profitability.
- The construction materials segment showed dependency on macroeconomic recovery, posing a risk if the macro environment worsens.
- Some regions, particularly those dependent on agribusiness, experienced slower growth due to external factors like droughts.
- The company's debt level stood at 294 million, with a net adjusted debt to EBITDA ratio of 1.1, which could pose financial risks if not managed carefully.
Good morning, everyone. Thank you for standing by. Welcome to the earnings release for the third quarter. I am Paula Lois. I have Peter Takaharu Furukawa and also Jean Pablo de Mello CFO. Now let's move to our next slide. So we are going to talk about our pillars, expansion and projects and then our financials and then we are going to have questions and answer session. Now going to slide number four, I give the floor to Mr Furukawa.
Good morning everyone. It's a pleasure to be here with you talking to you again. I'm going to talk about the fourth quarter. Some of you must have seen our numbers already and I'm going to explain them to break down to give you more details. And then John is going to talk to give you more details. So our growth in same store sales was 11% in the third quarter and still with the benefit of the [catastrophe] that affected Rio Grande do soul.
But now all regions are more similar in terms of performance. Retail sales grew 14% totaling 587 million. We have
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