Vivara Participações (VIVA3) Q1 2025 earnings summary

Executive summary

• Net revenue for Q1 2025 reached R$537.1 million, up 20.8% year-over-year, with gross profit of R$364.7 million and net income of R$115.0 million, reflecting strong operational performance and a net margin of 21.4%.

• Adjusted EBITDA grew 54.4% to R$101.1 million, with margin expanding 410 bps to 18.8%.

• Daily production reached 23,000 pieces, up 110% YoY, supporting internalization and reducing stockouts.

• The company operated 461 points of sale as of March 31, 2025, including new Life stores and kiosks, and expanded into Panama as a pilot international project.

• Independent auditors issued an unqualified review, confirming compliance with CPC 21 (R1) and IAS 34 standards.

Financial highlights

• Gross profit was R$364.7 million (+20.4% YoY), with gross margin at 67.9% (-25 bps YoY).

• Physical store sales grew 16.4% YoY, digital sales rose 8.6%, and same-store sales increased 10.1%.

• Operating expenses (SG&A) were R$234.2 million, 43.6% of net revenue, improving by 629 bps YoY.

• Operating cash flow was an outflow of R$173.6 million, mainly due to inventory build and supplier payments.

• Earnings per share rose to R$0.49 (basic and diluted), compared to R$0.15 in Q1 2024.

Outlook and guidance

• Positive outlook for 2025, with focus on growth in both physical and digital channels, continued profitability, and plans to open 40–50 stores.

• Strategic pillars include service quality, operational efficiency, inventory optimization, product innovation, and store network expansion.

• Emphasis on accessible luxury, portfolio diversification, and preparation for seasonal events.

• Management expects margin improvements as internal production increases and import reliance decreases.

• Company continues to benefit from tax incentives, including IRPJ reduction for Conipa until 2033 and ICMS credits.