Vittia (VITT3) Q2 2025 earnings summary

Executive summary

• Net revenue grew 7.0% year-over-year in 1H25 to R$236.9 million, driven by strong demand in soil fertilizers, despite a challenging agribusiness environment and delays in biological solutions sales.

• Adjusted EBITDA was negative R$13.9 million in 1H25 (vs. -R$11.2 million in 1H24), with a net loss of R$23.1 million, reflecting margin pressure and seasonal low demand.

• Operating cash flow was strong at R$115.2 million in 2Q25 (+16.6% YoY), supporting net debt reduction and leverage improvement to 0.88x LTM adjusted EBITDA.

• Continued cost rationalization led to a 0.6% decrease in SG&A expenses in 1H25, with ongoing focus on operational efficiency.

• New product launches, including Triunfe fungicide and two biological insecticides, and international expansion in Mexico marked the period.

Financial highlights

• Gross margin declined to 23.7% in 1H25 (vs. 27.7% in 1H24), with all segments experiencing lower profitability.

• SG&A expenses totaled R$88.9 million in 1H25, 37.5% of net revenue, down 2.8 p.p. from 1H24.

• Adjusted EBITDA margin was -5.9% in 1H25, lower than the prior year.

• Net financial result was negative at -R$1.3 million in 1H25, mainly due to higher average net debt and increased interest rates.

• CAPEX investments of R$15.0 million in 1H25 focused on operational improvements and new product launches.

Outlook and guidance

• Management expects a stronger second half with improved demand, higher order backlog, and growth in revenue, EBITDA, and profit by year-end.

• Cautious outlook persists due to high interest rates, commodity price volatility, and macroeconomic uncertainty.

• Expansion in Mexico and new product launches are expected to drive future growth.