Grazziotin (CGRA4) Q1 2026 earnings summary

Executive summary

• Consolidated net income for Q1 2026 was R$5.2 million, up 17.98% year-over-year, driven by a 30.9% increase in equity income and improved operational efficiency.

• Net revenue reached R$132.1 million, a slight decrease from R$135.4 million year-over-year.

• Gross profit improved to R$70.1 million, with a gross margin of 53.1% versus 48.1% in Q1 2025.

• EBITDA margin rose 5.5 p.p. to 11.6%, with EBITDA up 85.12% year-over-year due to store network adjustments and cost control.

• Operating expenses decreased, and financial results remained positive, supporting net income growth.

Financial highlights

• Total consolidated assets at March 31, 2026, were R$1.26 billion, with equity of R$883.3 million.

• Cash and equivalents were R$156.4 million, down 24% from 1Q25, mainly due to dividend payments.

• Net revenue fell 2.4% year-over-year, while cost of goods sold dropped 11.9%, boosting gross margin.

• Net cash from operations was R$26.2 million, stable year-over-year.

• Dividend payment of R$80 million in December 2025 impacted cash position.

Outlook and guidance

• Management is monitoring the impacts of the new tax reform, with no recognized effects yet.

• The company is preparing for IFRS 18 adoption in 2027, which will affect financial statement presentation.

• Ongoing adaptation to climate-related risks and regulatory changes is a focus.

• Management remains confident in the business model, focusing on operational improvements, financial discipline, and sustainable results.

• Continued attention to credit policy, product mix, and regional adaptation of store formats.