Vivara Participações (VIVA3) investor relations material

Executive summary

• Gross revenue increased 15.9% year-over-year, driven by 11% same store sales growth, new store openings, and strong digital channel performance.

• Gross margin expanded to 72.3%, up 347–350 bps year-over-year, supported by pricing management, product mix, and increased domestic production.

• Operational cash generation reached R$169.1 million, aided by early receipt of credit card receivables.

• Life brand and new store expansion contributed to sales growth, with Life stores maturing faster and gaining relevance.

• New distribution center in Espírito Santo began operations, expected to optimize logistics, reduce costs, and provide tax benefits.

Financial highlights

• Net revenue was R$761.0 million, up 16.0% year-over-year; gross profit rose 21.8% to R$550.2 million.

• Adjusted EBITDA was R$204.6 million, up 24.7% year-over-year; margin reached 25.5–26.9%.

• Net income for 2Q25 was R$151.1 million, impacted by prior year one-offs and changes in cost allocation.

• CAPEX was R$16.7 million, down 56.3% year-over-year, due to IT expense reclassification and fewer store openings.

• Inventory days reduced by 21 days quarter-over-quarter, reflecting effective optimization.

Outlook and guidance

• Management expects continued gross margin strength, robust product launches, and optimized assortment across all channels.

• Focus on price management, cost optimization, and mix improvement, especially in higher-margin subcategories.

• Plans to open 40–50 stores in 2025, with Life stores as the main growth driver.

• Ongoing innovation, marketing, and sales force training to drive future sales and conversion rates.

• New distribution center expected to reach full operational potential in 2H25, optimizing logistics and tax benefits.