Pague Menos Closes 2024 with 23% Surge in Q4 Net Income

Empreendimentos Pague Menos S.A. reported strong fourth quarter 2024 results yesterday, marking the conclusion of a transformative year for the Brazilian pharmacy chain.

The company achieved a net income of R$ 70.8 million ($12 million), representing a 23.3% increase compared to the same period in 2023. Total sales reached R$ 3.6 billion ($600 million) in Q4, climbing 17.4% from the previous year’s R$ 3.1 billion ($517 million).

Revenue followed a similar trajectory, growing to R$ 3.35 billion ($558 million), up 16.9% from R$ 2.87 billion ($478 million) in Q4 2023. The robust performance caps a year of steady progress for Pague Menos.

The company started 2024 with challenges but demonstrated consistent improvement throughout each quarter. Their return on invested capital reached an impressive 19.2% in Q4, surpassing last year’s figure by more than five percentage points.

This growth reflects successful execution of strategic initiatives implemented throughout 2024. The company focused on expanding its customer base while increasing purchase frequency.

Their same-store sales metric showed notable strength across both their main brands. The pharmacy chain maintained momentum despite facing increased operational expenses.

Strategic Growth and Financial Strength in 2024

Successful integration of Extrafarma stores contributed significantly to overall growth figures. Converted locations showed remarkable performance improvements compared to their pre-acquisition levels.

Pague Menos strengthened its financial position during 2024. The company reduced its leverage ratio, measured as net debt to EBITDA, from 2.5 times to 2.0 times by year-end. This improvement aligns with their revised financial targets for the fiscal year.

Looking ahead to 2025, the company plans to continue its expansion strategy. Future investments will target organic growth through new store openings while completing the conversion of remaining Extrafarma units.

The positive Q4 results reflect Pague Menos’ successful positioning as a comprehensive healthcare provider rather than just a pharmacy retailer. Their digital channels and customer loyalty initiatives delivered measurable benefits throughout 2024.

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