Magasin général Reports 2024 Results: A Mixed Bag
After announcing its 2024 results in a press release several weeks ago, we now have the financial statements that allow us to analyze operational performance.
Net Result Still in Negative Territory
The net result remains in negative territory, at -3,742 MTND. However, there is a significant improvement compared to the -34,009 MTND reported in 2023.
Business Growth and Revenue
Business growth continues, and revenue has been established at 1,041,473 MTND. However, the commercial margin has decreased by 1.8% year-over-year, to 195,015 MTND. This is a consequence of the erosion of purchasing power and a product mix still dominated by basic and regulated-price items.
Operating Expenses and EBIT
Operating expenses have reached 1,069,315 MTND, including 84,216 MTND in personnel expenses. The EBIT has returned to positive territory, at 10,163 MTND (-13,521 MTND in 2023). However, it was not sufficient to cover financial expenses, which stood at 14,438 MTND.
Debt and Financial Situation
Magasin général's medium- and long-term debt has significantly decreased, from 82,751 MTND at the end of 2023 to 46,174 MTND a year later. Bank loans remain high, at 128,651 MTND.
Shareholders' Meeting and Dividend Distribution
Shareholders have been convened to an ordinary general meeting on Wednesday, June 11, 2025, there will be no dividend distribution, as the carried-over negative result will pass to -30,145 MTND. It will take several years to absorb this. The stock is to be held for the medium term. For 2025, the large retail chain should be able to benefit from the improvement in the exchange rate, which will allow for a better margin while maintaining the same prices. The decline in interest rates is another factor in favor of the company. The beginning of the year has been positive in terms of volume. The first-half accounts will provide an idea of the profitability of the exercise.
