VRG (VRG) Q2 2025 earnings summary

Executive summary

• Group revenues in 2Q25 rose 10.8% YoY to PLN 377.5m, with both apparel (+8.2% YoY) and jewellery (+13.2% YoY) segments contributing to growth; H1 2025 revenue reached PLN 671.2m, up 8.4% YoY, driven by strong jewellery and apparel sales, especially in gold and silver jewellery and formal wear collections.

• Gross profit on sales increased 12.1% YoY to PLN 214.9m in 2Q25, with margin up 0.6pp to 56.9%; H1 2025 gross margin improved to 55.7% from 55.1% YoY.

• EBIT improved 13.2% YoY to PLN 43.7m (IAS17) in 2Q25; H1 2025 net profit was PLN 34.6m, up 13.8% YoY, with EBITDA at PLN 117.0m, up 6.4% YoY.

• The Group continued omnichannel development, enhanced CRM and marketing automation, and expanded its retail network to 478 locations.

• No dividend was paid from 2024 profit; net profit was allocated to supplementary capital to support further investments.

Financial highlights

• Apparel segment revenues reached PLN 175.9m (+8.2% YoY) in 2Q25 and PLN 305.9m (+7.4% YoY) in H1 2025; jewellery segment at PLN 201.6m (+13.2% YoY) in 2Q25 and PLN 365.3m (+9.3% YoY) in H1 2025.

• Group revenues per m2 rose 16.6% YoY to PLN 2,580 in 2Q25; apparel at PLN 1,727 (+19.8% YoY), jewellery at PLN 4,537 (+5.0% YoY).

• Gross profit margin for apparel increased by 1.2pp YoY to 61.8% in 2Q25; jewellery margin up 0.4pp to 52.7% in 2Q25; H1 2025 apparel gross margin up 1.6pp to 59.8%, jewellery stable at 52.4%.

• SG&A costs to revenues fell to 44.2% in 2Q25 (IFRS16).

• Net cash from operating activities was PLN 26.3m in H1 2025, reversing a negative outflow in H1 2024.

Outlook and guidance

• Management expects further revenue growth in both segments, improved gross profit margins, and continued cost control in 2H25, with focus on profitability improvement in apparel and operating profit growth in jewellery.

• Focus on attractive new collections, further floorspace optimization in apparel, and expansion in jewellery, especially in Hungary.

• Integration of the Lilou brand is expected to strengthen the jewellery segment and diversify the customer base.

• Planned capex for 2025 is c. PLN 41m, mainly for jewellery segment development.

• Management expects continued positive trends in consumer sentiment and easing inflationary pressures.