Vivara Participações (VIVA3) Q1 2025 earnings summary

Executive summary

• Gross revenue rose 14.9% year-over-year, with net revenue up 22.8% and net profit reaching R$115 million, net margin expanding to 22.4% (+1,340 bps YoY).

• Adjusted EBITDA grew 54.4% to R$101.1 million, margin expanding to 18.8% (+410 bps YoY).

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

• Opened 11 new Life stores in 2025, including entry into new cities, and retrofitted 5 stores to enhance customer experience.

• Factory expansion and internalization of production led to higher stock levels and improved operational efficiency.

Financial highlights

• Same-store sales grew 10.1%, with physical stores up 16.4% and digital sales up 8.6%.

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

• SG&A efficiency improved by 6.7 percentage points relative to net revenue.

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

• CAPEX was R$19.7 million, down 44.3% YoY due to fewer store openings.

Outlook and guidance

• Management expects continued expansion in profitability and results for the coming quarters, with margin improvements as internal production increases and import reliance decreases.

• Strategic pillars for 2025: service quality, operational efficiency, manufacturing capacity, product innovation, and stock management.

• Plans to open 40–50 stores in 2025, with focus on accessible luxury, portfolio diversification, and inventory optimization.

• Emphasis on seasonal events like Mother's Day and Valentine's Day for sales growth.