Grazziotin (CGRA4) Q1 2025 earnings summary

Executive summary

• Net revenue for Q1 2025 reached R$135.4 million, up 5.7% year-over-year, despite macroeconomic pressures and higher credit costs impacting consumer purchasing power.

• Consolidated net income was R$4.4 million, a 19.9% decrease from Q1 2024, reflecting margin compression and higher costs.

• Strategic focus on store modernization and brand repositioning, with 11 stores renovated and one relocated in the quarter.

• Pormenos and GZT brands contributed 42.47% and 32.17% of total revenue, respectively, highlighting their commercial importance.

• Grato Agropecuária completed soybean harvest with 71.3 sacks/ha, slightly below potential due to drought, but investments in irrigation preserved results.

Financial highlights

• Consolidated net revenue: R$135.4 million (Q1 2025) vs. R$128.1 million (Q1 2024).

• Net income: R$4.4 million (Q1 2025) vs. R$5.5 million (Q1 2024).

• EBITDA fell 48.32% year-over-year to R$6.8 million, with EBITDA margin dropping to 5.37% from 11.01%.

• Gross margin was 48.1%, slightly down from 51.4% in Q1 2024, reflecting higher cost pressures.

• Cash and equivalents at R$205.7 million at quarter-end, stable versus 4Q24.

Outlook and guidance

• The company continues to focus on operational efficiency, risk management, and capital allocation for store modernization and technology.

• Ongoing commitment to modernization, operational efficiency, and brand repositioning to drive future growth.

• No explicit forward-looking financial guidance provided.