PBG (PTBL3) Q1 2025 earnings summary

Executive summary

• Net revenue rose 12.6% year-over-year to R$591.9 million in Q1 2025, with all business units growing; Portobello America led with +66.8% and Pointer with +21.8%.

• Achieved broad-based growth and operational improvement, reinforcing leadership in Brazil and advancing international expansion, especially through Portobello America.

• Navigated significant operational challenges, including heavy rains in Santa Catarina and a challenging macroeconomic environment with high interest rates and debt costs.

• Pro forma EBITDA reached R$104.6 million (+28.5% YoY, 17% margin), while reported EBITDA was R$75.7 million, impacted by non-recurring flood-related events.

• Free cash flow was R$135.7 million, reversing a negative R$59.8 million in 1Q24, driven by a sharp reduction in the cash conversion cycle.

Financial highlights

• Consolidated net revenue: R$591.9 million (+12.6% YoY); international revenue up 53.6% in BRL, now 27% of total.

• Gross profit: R$224.1 million (+14.5% YoY); gross margin 37.9% (+0.6 p.p. YoY).

• Pro forma EBITDA: R$104.6 million (+28.5% YoY, 17% margin); reported EBITDA: R$75.7 million (-7.0% YoY, 12.8% margin).

• Pro forma net loss: R$3.8 million (vs. R$20.7 million loss in 1Q24); reported net loss: R$32.7 million.

• Free cash flow: R$135.7 million (vs. -R$59.8 million in 1Q24); closing cash: R$412 million.

Outlook and guidance

• Focus remains on cash generation, operational efficiency, and leverage reduction, with Portobello America expected to further drive growth and margin improvement.

• Portobello Shop to focus on margin recovery and stabilization through commercial strategies and portfolio launches.

• Export and engineering segments expected to drive growth; cost competitiveness enhanced by migration to the free gas market, estimated to reduce gas costs by 8%.

• Continued commitment to innovation, ESG, and sustainable value creation.