VRG (VRG) Q3 2025 earnings summary

Executive summary

• Group revenues in 3Q25 reached PLN 345.9m, up 11.1% YoY, with both apparel and jewellery segments contributing to growth.

• Revenues for the first three quarters of 2025 reached PLN 1,017.1 million, up 9.3% YoY, with net profit at PLN 47.0 million, a 15.9% increase from the prior year.

• Gross profit on sales rose 12.7% YoY to PLN 188.2m, with margin improving by 0.8pp to 54.4%.

• EBIT doubled YoY to PLN 21.5m under IAS17, and net profit increased 22.2% YoY to PLN 12.4m under IFRS16.

• EBITDA rose 11.8% to PLN 174.3 million, and the Group maintained a strong retail presence with 478 locations, despite a 3.2% YoY decrease in total sales area.

Financial highlights

• Apparel segment revenues rose 11.3% YoY to PLN 146.0m; jewellery segment revenues up 10.9% YoY to PLN 200.0m.

• Group EBITDA increased 24.8% YoY to PLN 57.3m, with margin up 1.8pp to 16.6%.

• Gross margin for the apparel segment increased to 58.9% (+1.5 pp YoY), with gross profit up 11.5% to PLN 266.2 million.

• Jewellery segment revenues grew 9.9% to PLN 565.3 million, with a stable gross margin of 52.4%.

• Net debt/EBITDA ratio stood at 1.7 (IFRS 16), 1.0x (IAS17), and 0.8x excluding reverse factoring.

Outlook and guidance

• Group expects continued revenue and margin growth in 4Q25, supported by new collections, omnichannel initiatives, and cost optimization.

• Capex for 2025 planned at PLN 42m, focused on jewellery segment expansion, apparel store renovations, and retail network development.

• 2025 and 2026 targets maintained: revenue growth, margin improvement, and higher operating profitability.

• Focus remains on improving apparel segment profitability and growing jewellery segment operating profit through sales growth, margin expansion, and cost control.

• The Group expects continued positive trends in retail sales, supported by improved consumer sentiment and easing inflation.