Vittia (VITT3) Q1 2025 earnings summary

Executive summary

• Net revenue grew 13.4% year-over-year to R$137.8 million in Q1 2025, driven by strong Fertilizantes de Solo sales (+55.2%), despite a challenging macroeconomic and climate environment.

• Adjusted EBITDA was R$6.9 million (+0.5% vs. 1Q24), reflecting cost control and operational efficiency, but net result was a loss of R$2.0 million, reversing a R$0.8 million profit in 1Q24 due to margin compression and higher financial expenses.

• SG&A expenses fell 1.9% year-over-year, supporting operational efficiency.

• Launched Triunfe, an innovative multi-site mineral product, strengthening the portfolio for key crops.

• Market conditions remain challenging, with high leverage, tax rates, and cautious farmer sentiment, but optimism persists for the next crop cycle.

Financial highlights

• Net revenue: R$137.8 million (+13.4% vs. 1Q24); Fertilizantes de Solo up 55.2%, Fertilizantes Foliares & Produtos Industriais up 18.3%, Soluções Biológicas e Naturais down 6.0%.

• Gross profit was R$42.0 million, with gross margin at 30.5% (down 5.7 p.p. year-over-year).

• Adjusted EBITDA margin was 5.0% (down 0.6 p.p. year-over-year).

• Net loss of R$2.0 million, with net margin at -1.4% (vs. +0.7% in 1Q24).

• CAPEX totaled R$5.3 million, down 24.8% year-over-year.

Outlook and guidance

• Management expects a more favorable environment for the 2025/26 crop, with improved producer profitability and increased investment in technology.

• No major new structural investments planned; focus remains on operational efficiency and cost discipline.

• Gross profit margin is expected to normalize as product mix stabilizes.