Grazziotin (CGRA4) Q2 2025 earnings summary

Executive summary

• Net income for the first half of 2025 reached R$44.5 million, up 42% year-over-year from R$31.3 million, with consolidated net revenue of R$360.2 million, a 5.3% increase over the same period in 2024.

• Achieved strong net income growth of 55.35% year-over-year in 2Q25, driven by higher financial revenues and tax savings from interest on equity.

• Celebrated 75 years of operations, reinforcing commitment to sustainable value and customer focus.

• Navigated a challenging macroeconomic environment with inflation and high credit costs, maintaining disciplined financial management.

• The company maintained a strong cash position, ending the period with R$168.8 million in consolidated cash and equivalents.

Financial highlights

• Consolidated net revenue for 1H25 was R$360.2 million, up from R$342.1 million in 1H24.

• Net income for 1H25 was R$44.5 million, compared to R$31.3 million in 1H24.

• Net income rose 55.35% to R$40.1 million in 2Q25 compared to 2Q24.

• EBITDA margin increased, supported by higher operating income and cost control.

• Gross margin remained stable at 51.55% in 2Q25 and improved to 51.7% for 1H25.

Outlook and guidance

• Management continues to focus on operational efficiency, store modernization, and risk management, especially regarding climate-related events.

• Management remains cautious due to persistent inflation and high interest rates, focusing on prudent credit and operational discipline.

• Positive outlook for the cotton harvest and ongoing development of second-crop grains.

• The company is evaluating the impact of new IFRS standards effective from 2027.