Grazziotin (CGRA4) Q3 2025 earnings summary

Executive summary

• Faced a challenging retail environment in 3Q25 due to persistent inflation, reduced consumer purchasing power, and atypically low temperatures impacting store traffic and seasonal sales.

• Net revenue declined 7.67% year-over-year, with a 65.73% drop in net income, mainly from lower sales and costs related to store closures.

• Opened three new stores with a new concept and closed six underperforming units, focusing on profitability and operational efficiency.

• Cash availability increased 22.85% year-over-year, reflecting strong operational cash generation.

Financial highlights

• Net revenue: R$148.96 million, down 7.67% from 3Q24.

• Net income: R$8.26 million, down 65.73% year-over-year.

• EBITDA: R$14.39 million, a 47.49% decrease from 3Q24; EBITDA margin fell 7.32 p.p. to 9.66%.

• Gross margin improved by 2.29 p.p. to 51.44%.

• Cash and equivalents reached R$214.95 million, up R$39.98 million from 3Q24.

Outlook and guidance

• Management remains confident in disciplined execution, financial solidity, ongoing modernization, and customer service excellence.