Casas Bahia Shows Recovery Signs Despite R$452 Million Q4 Loss

Brazilian retail giant Casas Bahia (BHIA3) reported a R$452 million ($75.3 million) net loss for the fourth quarter of 2024. The company disclosed these results on Wednesday, March 12, showing a 54.8% improvement compared to the R$1 billion ($166.7 million) loss recorded in the same period of 2023.

The retailer missed analyst expectations, as Bloomberg consensus had projected a R$278 million loss. Nevertheless, several positive indicators emerged. Revenue reached R$7.98 billion ($1.33 billion), growing 7.6% year-over-year, while adjusted EBITDA surged 300% to R$640 million ($106.7 million).

Casas Bahia generated R$1.2 billion ($200 million) in free cash flow, marking its best quarterly performance in five years. The company also reduced administrative expenses by 2.5% to R$1.89 billion ($315 million), demonstrating commitment to cost control.

Gross Merchandise Volume (GMV) grew 9.9% year-over-year, reversing previous negative trends. Physical stores performed particularly well, with GMV increasing 16.1% and same-store sales rising 17.1%. The marketplace segment showed strong momentum with 23.7% GMV growth.

Casas Bahia’s Financial Turnaround

The company’s installment credit portfolio reached a record R$6.2 billion ($1.03 billion), expanding by R$824 million ($137.3 million) year-over-year. Delinquency rates improved significantly, with defaults over 90 days dropping 1.4 percentage points to 8%.

This report follows Casas Bahia’s April 2024 debt restructuring, which reorganized R$4.1 billion ($683.3 million) in obligations. That move extended average debt maturity from 22 months to 72 months, easing short-term financial pressure.

CEO Renato Franklin highlighted the company’s turnaround progress. “We closed 2024 with significant advances, consolidating a new phase of sustainable growth,” he stated. Franklin emphasized their readiness to strengthen positioning in Brazilian retail throughout 2025.

The results reflect Casas Bahia’s ongoing transformation strategy, which included inventory reduction, store closures, logistics consolidation, and marketplace expansion. Management now focuses on expanding installment credit options, boosting e-commerce profitability, and enhancing omnichannel customer experience.

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