Grupo SBF (SBFG3) Q2 2025 earnings summary

Executive summary

• Net revenue reached R$1.8 billion in 2Q25, up 6.1% year-over-year, with Centauro and Fisia as main growth drivers and record revenue for Centauro.

• Adjusted net profit (ex-IFRS) rose 19.1% to R$87.2 million, with a net margin of 4.8%.

• Launched a new strategic plan focused on growth, retail renewal, and digital evolution, following successful deleveraging.

• Strategic investments in store improvements, digital platforms, and commercial structure supported operational performance.

• Fisia's wholesale channel showed recovery, aided by price normalization, showroom events, and new sponsorships.

Financial highlights

• Consolidated gross profit was R$891.9 million (+4.6% vs. 2Q24), gross margin at 49.1% (-0.7 p.p.).

• Adjusted EBITDA (ex-IFRS) was R$167.4 million, down 4.9% year-over-year; EBITDA margin at 9.2% (-1.1 p.p.).

• Operating cash flow was R$179.5 million, a 23% decrease due to higher inventories supporting growth.

• CAPEX was R$50.6 million (-10.6% vs. 2Q24), with increased investment in store renovations.

• Dividend payments totaled R$127.3 million in the quarter.

Outlook and guidance

• Management expects continued growth in Centauro and Fisia, with investments in digital, omnichannel, and store improvements.

• Fisia anticipates further margin recovery as new tax incentives for wholesale take effect in 2H25.

• Q2 and Q3 are considered transition quarters; major benefits from investments expected in Q4 and especially next year.

• The company aims to maintain leverage at comfortable levels despite ongoing investments.

• Fisia to deepen alignment with Nike's global strategy, prioritizing running and soccer categories.