Grazziotin (CGRA4) Q2 2026 earnings summary

Executive summary

• Net revenue for Q2 2026 declined 3.83% year-over-year due to weaker consumer demand, though May saw a 6.25% boost from Mother's Day sales.

• Operational efficiency improved with a 10% reduction in inventories, lower administrative expenses, and a 2.8 p.p. drop in credit default rates.

• Grazziotin and Pormenos brands grew sales by 10.6% and 4.5% respectively, aided by store rebranding and repositioning.

• The financial arm posted R$6.4 million net income in H1 2026, with a 6.9% increase in the credit portfolio, mainly driven by CDC products.

• The agribusiness joint venture achieved a 14.1% increase in soybean yield, positively impacting biological asset valuations.

Financial highlights

• Consolidated net revenue for Q2 2026 was R$219.6 million, down 2.3% year-over-year; H1 2026 net revenue was R$351.7 million, down 2.4% from H1 2025.

• Q2 2026 consolidated net income was R$28.0 million, a 30% decrease year-over-year; H1 2026 net income was R$33.2 million, down 25% from H1 2025.

• EBITDA for Q2 2026 was R$41.2 million (margin 18.8%), down 14.5% year-over-year; EBITDA margin fell 2.64 p.p. to 17.9%.

• Gross margin in Q2 2026 was 48.9%, a decrease of 2.7 p.p. year-over-year.

• Cash and equivalents reached R$170.2 million at quarter-end, up 0.9% year-over-year.

Outlook and guidance

• Management remains focused on operational discipline, capital allocation, and productivity improvements to preserve profitability and create sustainable value.

• The company is preparing for the transition to a new tax regime starting in 2027, with ongoing assessment of potential impacts.