Vivara Participações (VIVA3) Q2 2025 earnings summary

Executive summary

• Board of Directors is experienced and collaborative, with expertise in capital markets, retail, and technology.

• Leadership expresses strong confidence in the executive team and workforce, emphasizing resilience and commitment.

• Gross revenue increased 15.9% year-over-year, with net revenue up 16.0%, driven by 11.0% same store sales growth and strong performance in Life stores and digital channels.

• Gross margin expanded to 72.3%, up 350 bps year-over-year, and adjusted EBITDA margin reached 26.9%, up 1.9 p.p. year-over-year.

• Interim financial statements reviewed by KPMG for the quarter ended June 30, 2025, with no material misstatements identified.

Financial highlights

• Gross revenue reached R$969.7 million (+15.9% YoY); net revenue was R$761.0 million (+16.0% YoY).

• Gross profit rose 21.8% YoY to R$550.2 million; gross margin at 72.3% (+350 bps YoY).

• Adjusted EBITDA was R$204.6 million (+24.7% YoY); adjusted EBITDA margin at 26.9% (+1.9 p.p. YoY).

• Net income for 2Q25 was R$151.1 million; 6M25 profit was R$266.1 million.

• CAPEX totaled R$16.7 million, a 56.3% reduction YoY, reflecting fewer store openings and IT expense reclassification.

Outlook and guidance

• Confident start to 2H25 with a robust product launch roadmap and optimized assortment across all channels.

• Focus on price management, cost optimization, and mix improvement, especially in higher-margin subcategories.

• Plans to open 40–50 stores in 2025, with Life stores as the main growth driver; 100% of 2025 store opening pipeline contracted or under negotiation.

• New Espírito Santo distribution center expected to reach full operational potential in 2H25, optimizing logistics and tax benefits.

• The company continues to benefit from tax incentives in the Manaus Free Trade Zone, expected to last through 2033.