Vulcabras (VULC3) Q4 2024 earnings summary

Executive summary

• Achieved net revenue of R$905.7 million in 4Q24 (+14.5% YoY) and R$3,048.6 million in 2024 (+8.2% YoY), with record gross revenue of R$3.5 billion in 2024 (+9.2% YoY).

• Recurring net income was R$169.2 million in 4Q24 (+16.9% YoY) and R$544.1 million in 2024 (+11.1% YoY), with recurring net margin up 0.4 p.p. to 17.8% for the year.

• E-commerce net revenue surged 50.1% in 4Q24 and 55% in 2024, now representing over 14% of total net revenue.

• Athletic footwear led growth, with Olympikus, Mizuno, and Under Armour expanding portfolios and market presence.

• Achieved 18 consecutive quarters of growth, driven by strong retail, e-commerce, and brand performance.

Financial highlights

• 4Q24 gross profit: R$376.9M (+11.7% YoY); 2024: R$1,278.4M (+8.7% YoY); gross margin 41.6% in 4Q24 and 41.9% in 2024.

• 4Q24 recurring EBITDA: R$192.2M (+8.2% YoY); 2024: R$675.6M (+5.5% YoY); margin 21.2% in 4Q24 and 22.2% in 2024.

• Adjusted ROIC improved to 29.5% in 4Q24; ROIC reached 26.1% in 2024, up 1.1 p.p. from 2023.

• Net financial income was R$1.7 million in 4Q24, reversing a loss in 4Q23.

• Net debt at R$22.6M as of Dec 31, 2024, down 64.3% from prior year; closing cash balance at R$783.0 million.

Outlook and guidance

• Entering 2025 with a consolidated portfolio, healthy inventory, and strong brand acceptance.

• Focus remains on innovation, portfolio expansion, and operational efficiency for sustainable, profitable growth.

• Domestic market remains the primary revenue driver, with foreign market revenue declining in 2024.