Vivara Participações (VIVA3) Q3 2025 earnings summary

Executive summary

• Achieved record third-quarter revenue, gross margin, EBITDA margin, and operating cash generation, marking the strongest Q3 in company history.

• Gross revenue increased 15.5% year-over-year, with net revenue up 18.0% driven by same store sales growth of 10.4%.

• Net income rose 64.1% year-over-year to R$175.9 million, with net margin improving to 26.5%.

• Market share in Brazilian jewelry increased to 23.2%, up 5.0 p.p. from 3Q24.

• Management highlighted robust operational execution, diligent inventory management, and successful cost control initiatives.

Financial highlights

• Gross revenue reached R$805.4 million, up 15.5% vs. 3Q24; net revenue was R$664.5 million, up 18.0%.

• Adjusted EBITDA was R$174.5 million, up 37.0% year-over-year, with margin at 26.3% (+364 bps YoY).

• Gross margin improved to 71.4%, up 444 bps year-over-year, driven by structural initiatives.

• Inventory increased by BRL 120 million, with half attributed to gold purchases during a strategic 'gold week' and the remainder to seasonality and GGR impact; inventory days (ex-GGF) at 631.

• Physical store sales grew 16.3%, digital sales increased 11.6% year-over-year, representing 13.9% of total sales.

Outlook and guidance

• Teams are fully prepared for Black Friday and Christmas, with inventories structured for strong seasonal demand.

• Expectation of continued gross margin efficiency and inventory optimization into next year, with no aggressive price pass-throughs planned.

• Plans to accelerate store openings in 2026, especially for the Life brand, with controlled SG&A impact due to maturing stores.

• Initiatives underway to increase operating cash generation and improve EBITDA-to-cash conversion.

• No further receivables anticipation planned, as debt profile has been restructured.