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 an 18.4% increase in sales area with 63 new points of sale in the last 12 months.

• Adjusted EBITDA rose 44% to R$127.4 million, with margin expanding 3.2 p.p. to 22.6%. Net income was R$107.2 million, up 40% from 3Q23, with net margin at 19.0%.

• 11 new stores opened in 3Q24 (1 Vivara, 10 Life), totaling 435 points of sale; first international store opened in Panama in October 2024.

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

• Vivara's market share in the Brazilian jewelry market reached 21.2% in September 2024, up 2.4 p.p. from the previous year.

Financial highlights

• Net revenue in 3Q24 was R$562.9 million, up 23.1% year-over-year, benefiting from higher presumed ICMS credits and improved inventory allocation.

• Gross profit reached R$376.7 million (+21.9%), with gross margin at 66.9% (-0.7 p.p.), impacted by higher personnel and depreciation costs.

• Operating expenses (SG&A) improved to 40.6% of net revenue, a 495 bps efficiency gain.

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

• Capex totaled R$34.5 million, down 28.3% year-over-year, mainly for new stores and IT.

Outlook and guidance

• Over 20 new stores planned for 4Q24, aiming to close 2024 with 70–80 new stores as projected.

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

• First international store opened in Panama City in October 2024 as a pilot for future expansion, while Brazil remains the primary focus.

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

• 70 new stores planned for 2025, with Life as a key growth driver.