GPS Group (GGPS3) profits R $ 783 million by 2024 and EBITDA advances 24%; Director of Ri highlights M&S and sees a company prepared for 2025

(Image: LinkedIn/GPS Group)

THE GPS Group (GGPS3) saw profit grow 52% over the previous quarter. In the 2024 consolidated, the profit was R $ 783 million, 7% higher than 2023.

Compared to the same period of the previous year, the profit retreated 2%, but the net revenue reached R $ 4 billionwhich represents growth of 43%.

In an interview with Money Timesthe director of governance and investor relations (RI) of the group, Marita Bernhoeft, said that inorganic growth was the highlight of the year, with the conclusion of new But (mergers and acquisitions).

The recipe line was directly impacted by the acquisition of Garsthe largest of the 54 m & those performed by the GPS Group.

“It was a great challenge to bring a $ 3.3 billion gross revenue business in the food business, which we had a lesser extent in the group. It was very positive that we completed the process of integration without discontinuities and without loss of clients, ”said Bernhoeft.

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Solid growth strategy

In the year, the company’s revenue grew 39%, with 36% being linked to the company’s M&S and the company’s inorganic growth strategy. THE GPS Group It also works with organic growth, but the segment had more difficulty due to pressure on prices.

“We compete in a very fragmented market, very sprayed. Many times I don’t top the price the customer is wanting, because I don’t want to compromise my margin, but some smaller competitor can bump, ”said the company executive.

Bernhoeft points out that the service segment that the group operates has tight margins, but while the competition works with profit margins in 4% or 5%, the GPS can deliver 10%. Margin fat is a solidity factor capable of making the company more sustainable in times of economic slowdown.

The director also points out that the company is in a positive path to reduce leverage, even with strong acquisition movements. According to her, the GPS It is close to the 1.5x comfort zone of net debt/EBITDA, considered for the company to look again at M&S.

Next steps of the GPS group (GGPS3)

Regarding the macroeconomic scenario, the company sees 2025 as another moment of low natural, but understands that from a medium to long term perspective there will be recovery, citing the economic recession of 2014 and the pandemic in 2020. Even in the current scenario, the idea is to continue boosting growth.

“Growth is not a continuous line, there are a year that we grew up more in inorganic, others that was half -half. For us the important thing is to deliver margin stability, so we can deliver this margin of two digits, which is not common in the sector, ”said the executive.

The company’s last acquisition towards inorganic growth was refers to RHMED Associated Consultantswhich points to the verticalization of the group. “I’m bringing an occupational health service, which I use for my own team,” says Bernhoeft.

In a report released last week, the BTG Pactual considered the positive movement in the face of a possible tightening in organic growth in 2025. The bank reiterated the recommendation of buywith target price of R $ 26a potential for appreciation of 80%.

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