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, with net revenue up 18.0% and net income rising 64.1% year-over-year to R$175.9 million.

• 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.

• The company expanded its retail footprint to 474 points of sale, up from 457 at year-end 2024.

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 expanded to 71.4% (+444 bps YoY), driven by structural initiatives and improved supplier negotiations.

• 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.

• Digital sales grew 11.6% year-over-year, representing 13.9% of total sales.

Outlook and guidance

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

• Focused on capturing seasonal demand for Black Friday and Christmas with well-prepared inventories and omnichannel enhancements.

• 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.

• Tax incentives for operations in the Manaus Free Trade Zone have been extended until 2033, supporting future profitability.