Grazziotin (CGRA4) Q3 2025 earnings summary

Executive summary

• Net income for the nine months ended September 30, 2025, was R$52.8 million, down from R$55.4 million year-over-year.

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

• Consolidated net revenue reached R$525.1 million for the period, a 2.6% increase from R$511.9 million in the prior year, but 3Q25 net revenue declined 7.67% year-over-year.

• Cash and equivalents reached R$214.95 million at quarter-end, up 22.85% year-over-year.

• The auditor's review found the financial statements to be in accordance with CPC 21 and IAS 34, with no exceptions noted.

Financial highlights

• Gross profit for the nine months was R$278.3 million, up from R$267.2 million year-over-year.

• EBITDA margin remained stable for the nine months, but in 3Q25 EBITDA was R$14.39 million, a 47.49% decrease year-over-year, with margin falling to 9.66%.

• Earnings per share (basic) for ON and PN were R$2.567 and R$2.576, respectively, for the nine months.

• Operating cash flow was R$115.2 million, compared to R$105.7 million in the prior year.

• Total assets at quarter-end were R$1.31 billion, with equity of R$957.4 million.

Outlook and guidance

• The company is preparing for the transition to Brazil's new tax regime, with practical effects expected from 2027.

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

• Management is evaluating the impact of upcoming IFRS standards, including IFRS 18 and 19, with no significant effects anticipated.