PBG (PTBL3) Q1 2025 earnings summary

Executive summary

• Achieved 12.6% year-over-year revenue growth in Q1 2025, with all business units expanding and Portobello America leading with 66.8% growth.

• Gross profit increased 14.5% to R$224.1 million, with margin improvements across all units; Portobello America’s gross margin rose from -1.8% to 16.4%.

• Navigated operational challenges, including heavy rains in Santa Catarina, which caused significant losses and impacted inventory and expenses.

• Advanced internationalization, with international revenue rising to 27% of total, up 7.2 percentage points year-over-year.

• Maintained disciplined financial execution and implemented board changes to drive retail and innovation.

Financial highlights

• Consolidated net revenue grew 12.6% year-over-year to R$591.9 million; international revenue up 53.6% in BRL, now 27% of total.

• Gross profit increased 14.5% to R$224.1 million, with consolidated gross margin up 0.6 p.p. to 37.9%.

• Pro forma EBITDA reached R$104.6 million (17% margin); reported EBITDA was R$75.7 million, impacted by non-recurring events.

• Free cash flow was R$135.7 million, reversing a negative R$59.8 million in 1Q24.

• Net debt stood at R$928.2 million (down R$100 million QoQ); pro forma leverage at 2.7x, reported at 3.0x.

Outlook and guidance

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

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

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

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

• Pointer expected to sustain strong growth and profitability from portfolio repositioning.