Vivara Participações (VIVA3) Q3 2024 earnings summary

Executive summary

• Gross revenue in 3Q24 reached R$697.4 million, up 20.0% year-over-year, driven by 13.5% same-store sales growth and expansion of sales area by 18.4% with 63 new points of sale.

• Net revenue rose 23.1% to R$562.9 million, benefiting from higher presumed ICMS credits and improved inventory allocation.

• Adjusted EBITDA increased 43.7% to R$127.4 million, with margin expanding 3.2 p.p. to 22.6% due to operational leverage and expense control.

• Net income grew 40.0% to R$107.2 million, with net margin at 19.0%, reflecting strong operational performance and tax credits.

• 11 new stores opened in 3Q24 (1 Vivara, 10 Life), totaling 435 points of sale; first international store opened in Panama in October.

Financial highlights

• Gross profit grew 21.9% to R$376.7 million, with gross margin at 66.9% (down 0.7 p.p. year-over-year) due to higher factory expenses and product mix effects.

• Operational cash generation was R$5.4 million, reversing a cash outflow of R$13.2 million in 3Q23.

• Capex totaled R$34.5 million, down 28.3% year-over-year, mainly due to lower plant investments.

• Net cash position reached R$83.1 million, up 151.6% from December 2023; gross debt decreased 14.9% to R$230.9 million.

• Marketing expenses rose to 8.7% of revenue in Q3 2024, up from 5.7% in Q3 2023, but are expected to normalize.

Outlook and guidance

• Over 20 new stores expected to open in 4Q24, aiming for 70–80 new stores in 2024 and 70 more in 2025.

• Focus on Black Friday and Christmas, with enhanced inventory and 12 new collections launched between October and December.

• Expectation of margin improvement in Q4 2024 and 2025 as new Life collections launch and factory utilization rises.

• 2025 outlook includes continued store expansion and profitability gains from operational leverage and tax optimization.

• International expansion underway, with a pilot store in Panama performing in line with expectations.