Grupo Mateus Posts 32.5% Profit Surge on Robust Q1 2025 Performance

According to Grupo Mateus’s earnings release on May 5, 2025, the chain reported R$318.5 million ($53 million) in net profit. The R$8.33 billion ($1.39 billion) in net revenue grew 12.9% from 1Q24.

Net profit rose 32.5% year on year. Investors noted a modest net margin increase from 3.3% to 3.8%. Gross profit reached R$1.917 billion ($319.5 million), up 16.2% over 1Q24.

The gross margin expanded 0.7 percentage point to 23.0%. EBITDA, post IFRS 16, rose 27.4% to R$650 million ($108.3 million). EBITDA margin improved by 0.9 point to 7.8%.

The company reported R$9.423 billion ($1.57 billion) in gross revenue. Total deductions, including returns and taxes, reached R$1.092 billion ($182 million). PIS and COFINS subsidies stood at R$35 million ($5.8 million).

The effective tax rate rose to 12.3% from 11.9% in 1Q24. Operating expenses totaled R$1.268 billion ($211.3 million) in 1Q25, an 11.2% increase. Selling expenses rose with store openings and higher logistics costs.

General and administrative expenses climbed modestly to R$103.3 million ($17.2 million). The net financial result showed R$181.2 million ($30.2 million) in losses.

Same-store sales grew 5.2% unadjusted, down from 9.6% in 1Q24. Calendar-adjusted growth measured at 7.1% for January to April. Grupo Mateus attributed slower volumes to macroeconomic headwinds.

Grupo Mateus Expands Network Amidst Economic Challenges

The company emphasized price strategy amid challenging consumer volumes. By March, the group ran 172 food retail and 104 electronics stores across six states.

These formats include Mateus supermarkets, Camino stores, Mix Mateus cash and carry, and Eletro Mateus. The group added 17 stores over the last 12 months, boosting selling area by 8%. New logistics centers enhanced distribution density and lowered freight costs.

The group opened four new stores in 1Q25. It launched two atacarejo outlets in Pernambuco and Bahia. It added two supermarkets in Maranhão at São Mateus and São Luís. The network reached 92 atacarejo and 80 retail units by March.

Net debt rose slightly to R$614.4 million ($102.4 million) by March. The net debt to adjusted EBITDA ratio improved to 0.27 times. Cash and equivalents stood at R$1.520 billion ($253.3 million). The company maintained stable leverage versus 1Q24.

Operating cash flow reached R$315.9 million ($52.7 million) in 1Q25. The group invested R$320.8 million ($53.5 million) in capex. Investments supported new stores and logistics expansion. Management flagged capex discipline in a tougher economic climate.

The quarter confirmed Grupo Mateus’s network-driven growth strategy. Investors will watch volumes and price mix in coming quarters. The chain’s multi-format model spans B2B, cash and carry, and supermarkets. It stands poised to leverage route density across Northeast Brazil.

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