VRG (VRG) Q1 2025 earnings summary

Executive summary

• Group revenues in 1Q25 rose 5.5% YoY to PLN 293.6m, with both apparel and jewellery segments contributing to growth.

• Net profit increased to PLN 6.0m, up 171.5% YoY, with net margin improving to 2.0% from 0.8% in 1Q24.

• EBITDA increased by 4.9% YoY to PLN 37.9m; EBIT rose to PLN 3.7m.

• Retail space decreased by 7.2% overall, with apparel down 12.9% and jewellery up 9.3%.

• The Group operates 476 retail locations, mainly through long-term leases in shopping centers.

Financial highlights

• Gross profit margin improved to 54.3% in 1Q25, driven by lower discounting in apparel.

• Apparel segment revenues up 6.3% YoY to PLN 129.9m; jewellery segment up 4.9% YoY to PLN 163.7m.

• Net cash from operating activities was PLN 48.5m; net cash from investing and financing activities were -45.4m PLN and -7.1m PLN, respectively.

• Book value per share increased to PLN 4.56 from 4.54 at year-end 2024.

• No dividend declared for 2024; profit allocated to reserve capital.

Outlook and guidance

• Focus on revenue growth in both segments, margin improvement, and cost control.

• Planned capex for 2025 at c. PLN 41m, with emphasis on jewellery network expansion, apparel store renovations, and digitalization.

• Continued expansion of W.KRUK jewelry stores in Poland and Hungary, with focus on e-commerce and new product launches.

• No dividend recommended for 2024 to support further development and investments.

• No public financial forecast for 2025 was issued.