Vulcabras (VULC3) Q1 2025 earnings summary

Executive summary

• Net revenue reached R$701.2 million in 1Q25, up 17.4% year-over-year, marking the 19th consecutive quarter of growth.

• Net income rose 19.5% to R$106.1 million, with net margin improving by 0.2 p.p. to 15.1%.

• EBITDA grew 14.7% to R$140.4 million, with a 20.0% margin, slightly down due to higher commercial expenses from e-commerce growth.

• E-commerce revenue surged 53.8% to R$118.4 million, now 16.9% of total net revenue.

• Domestic market net revenue grew 19.3%, while foreign market revenue declined 13.1% due to challenges in Argentina.

Financial highlights

• Gross profit was R$281.9 million, up 17.5% year-over-year; gross margin stable at 40.2%.

• Cost of goods sold remained at 59.8% of net sales, despite labor and input cost pressures.

• Selling and allowance for doubtful accounts expenses rose 21.1% to R$134.1 million, mainly due to e-commerce and new outlets.

• Advertising and marketing expenses increased 29.1% to R$35.5 million, representing 5.1% of net revenue.

• General and administrative expenses grew 17.1% to R$43.9 million, stable at 6.3% of net revenue.

Outlook and guidance

• Management expects continued growth, supported by innovation, portfolio expansion, and operational efficiency.

• Order book and new collections show strong market acceptance, reinforcing a positive outlook for 2025.

• Management notes that future results may differ due to economic, market, and industry uncertainties.