Vivara Participações (VIVA3) investor relations material

Executive summary

• Gross revenue grew 13.8% year-over-year, driven by 9.7% same-store sales growth and 16.2% digital sales growth, with strong performance in the jewelry category.

• Operating cash generation reached R$92.2 million, reversing prior year cash consumption, supported by inventory optimization and lower product purchases.

• Gross margin expanded by 2.0 percentage points to 69.8%, reflecting effective markup management and multi-metal strategies.

• Net income was R$88.2 million, with a net margin of 14.8%, impacted by lower subsidy revenue and higher financial expenses.

• EBITDA and ROIC improved, with ROIC reaching 23.1%, up 0.4 percentage points year-over-year.

Financial highlights

• Net operating revenue increased 10.9% year-over-year to R$595.5 million, aided by the new Espírito Santo distribution center.

• Gross profit rose 14.2% to R$415.6 million, with gross margin at 69.8%.

• Adjusted EBITDA was R$96.7 million, with a margin of 16.2%, stable on a comparable basis.

• Net debt decreased to R$246.6 million, with net debt/adjusted EBITDA at 0.3x.

• Inventory days reduced by 77 days year-over-year to 601.

Outlook and guidance

• Inventory optimization and gradual price adjustments are expected to help navigate gold price volatility through 2027.

• Continued investments in new store openings, renovations, and technology to support growth.

• Management expects gross margin to remain stable or slightly positive for the year, with margin levers in place to offset commodity price pressures.

• Confidence in maintaining and expanding market leadership, with a 24.8% share of the Brazilian jewelry market.

• Emphasis on digital channel growth and leveraging the "hub effect" of both brands in the same mall.