Vivara Participações (VIVA3) Q4 2023 earnings summary

Executive summary

• FY23 gross revenue reached R$2.788bn, up 21.2% YoY; net revenue rose 18.6% to R$2.187bn.

• Adjusted EBITDA increased 19.6% to R$479.6m; net income rose 2.3% to R$369.2m.

• Added 61 stores in FY23; market share reached 19.6% in Dec-23, up 220 bps YoY.

• SSS grew 15.0% in 4Q23 and 12.4% in FY23; active customers reached 2.0m, up 17.0% YoY.

Financial highlights

• 4Q23 gross revenue was R$1.017bn, up 24.0% YoY; net revenue was R$778.1m, up 20.8%.

• 4Q23 gross profit rose 19.3% to R$544.4m; FY23 gross profit increased 19.4% to R$1.52bn.

• Adjusted EBITDA grew 12.6% to R$200.4m in 4Q23 and 19.6% to R$479.6m in FY23.

• Net income declined 8.6% to R$144.2m in 4Q23; FY23 net income was R$369.2m, up 2.3%.

• Operational cash generation was R$142.9m in FY23 versus R$17.4m in FY22; 4Q23 generation was R$126.1m, up 56.9%.

Outlook and guidance

• 2024 expansion plan targets 70–80 store openings; 16 stores had opened by March 19.

• Manaus plant operations and increased Life-category insourcing are expected to support profitability and offset higher taxation; outlook remains subject to tax challenges.