Vivara Participações (VIVA3) Q4 2024 earnings summary

Executive summary

• Achieved record results in 2024, with historic highs in EBITDA and net profit, driven by operational improvements, strategic inventory management, and strong advances in corporate structure and customer service.

• Net revenue grew 17.8% year-over-year to R$2.58 billion, with gross revenue up 17.3% to R$3.27 billion, and same-store sales growth of 15.6% in physical stores.

• Opened 72 new stores in 2024, including 9 Vivara and 63 Life stores, and launched the first international store in Panama.

• Ended year with 457 points of sale, a 14.7% increase in active customer base, and 21.6% market share in Brazil (+200 bps YoY).

• Focused on better inventory allocation, cost optimization, and enhanced customer service, reflected in a high NPS of 79-85.

Financial highlights

• Adjusted EBITDA reached R$657.5 million (+37% YoY), with a margin of 25.5%; net profit was R$653.4 million (+71% YoY, margin 25.4%).

• 4Q24 gross revenue was R$1.16 billion (+14.3% YoY); net revenue R$913.3 million (+17.4% YoY).

• Life stores contributed R$646.6 million in gross revenue (+49.7% YoY), now representing 26% of physical channel revenue.

• Digital channel gross revenue was R$469.8 million (+7.1% YoY), with 14.4% share of total sales.

• CapEx was R$129 million (5.0% of net revenue, -27.6% YoY), reflecting greater discipline.

• Net debt/adjusted EBITDA at 0.2x; gross debt R$398.6 million (+46.8% YoY).

Outlook and guidance

• Plans to open 40–50 new stores in 2025, focusing on Life stores, manufacturing productivity, service excellence, and IT/product innovation.

• Aims to finalize nationalization of Life production in 2025, targeting 80% domestic manufacturing.

• Continued emphasis on operational efficiency, logistics optimization, and customer service improvements.

• Innovation agenda includes new product launches (silver, gold, lab diamonds) and technology upgrades (app and website relaunches).