Grazziotin (CGRA4) Q4 2025 earnings summary

Executive summary

• Net revenue for 4Q25 reached R$203.9 million, a 1.08% decrease year-over-year.

• Net income for 4Q25 was R$31.1 million, down 36.8% compared to 4Q24, impacted by non-recurring tax credits in the prior year.

• 2025 was marked by a challenging retail environment in Brazil, with selective consumption, persistent inflation, tighter credit, and climate impacts in the South region, yet operational stability and financial discipline were maintained.

• Net sales declined 2% year-over-year, but net revenue remained stable, reflecting business resilience. Strategic repositioning of brands led to 40% and 9% sales growth in Grazziotin and Pormenos, respectively.

• 15 new stores were opened and 28 were renovated, with R$32 million invested to enhance customer experience and operational efficiency.

Financial highlights

• Consolidated net revenue: R$744.8 million in 2025, up 2.2% from 2024.

• Net income: R$83.9 million, down 19.9% year-over-year, with 2024 impacted by non-recurring tax credits.

• EBITDA: R$114.9 million, margin 15.4% (down from 19.4% in 2024).

• Gross margin: 53.4% in 2025, slightly down from 53.8% in 2024.

• Cash and equivalents at year-end were R$147.1 million, down R$60.1 million from 4Q24, mainly due to dividend payments.

Outlook and guidance

• Management highlights ongoing focus on operational efficiency, store repositioning, and prudent credit management amid challenging macroeconomic conditions.

• The company expects continued focus on operational efficiency, digital transformation, and customer experience.

• Ongoing adaptation to the new tax reform, with practical effects expected from 2027.

• The agricultural joint venture faces margin pressure from lower commodity prices, especially cotton.