Vivara Participações (VIVA3) Q4 2024 earnings summary

Executive summary

• Achieved record results in 2024, with net revenue up 17.8% to R$2.58 billion and net profit up 71% to R$653.4 million, driven by operational improvements, strategic inventory management, and robust store expansion, including 72 new locations and the first international store in Panama.

• Same-store sales grew 15.6% in physical stores, with strong performance from both Vivara and Life formats, and a 14.7% increase in active customer base.

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

• Opened 457 points of sale by year-end, achieving a 21.6% market share in Brazil (+200 bps YoY).

• Launched first international store in Panama and announced new brand ambassadors to strengthen market positioning.

Financial highlights

• Gross revenue for 2024 was R$3.27 billion (+17.3% YoY); net revenue R$2.58 billion (+17.8% YoY); gross profit R$1.81 billion (+19.4% YoY); gross margin 70.2% (+0.9 p.p.); adjusted EBITDA R$657.5 million (+37% YoY, margin 25.5%).

• Net profit reached 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); adjusted EBITDA margin 32.9% (+7.2 p.p. YoY).

• CapEx was R$129 million (5.0% of net revenue, -27.6% YoY); CapEx per square meter reduced from R$12,500 to R$10,500.

• Net debt/adjusted EBITDA at 0.2x; gross debt R$398.6 million (+46.8% YoY); cash and equivalents R$278.2 million at year-end.

Outlook and guidance

• Plans to open 40–50 new stores in 2025, focusing on Life stores, high-potential shopping centers, and international expansion.

• Aims to finalize nationalization of Life production, optimize inventory and logistics, and launch new tech initiatives (Vivara App, new website, product innovation in silver, gold, and lab diamonds).

• Continued emphasis on operational efficiency, manufacturing productivity, and customer service improvements.