Grazziotin (CGRA4) Q4 2025 earnings summary

Executive summary

• Net revenue for 4Q25 reached R$203.9 million, a 1.08% decrease year-over-year.

• Net income for 4Q25 was R$31.1 million, down 36.8% compared to 4Q24, impacted by non-recurring tax credits in the prior year.

• EBITDA for 4Q25 totaled R$34.3 million, a 25.9% decrease year-over-year, with margin at 16.8%.

• The group operates 345 stores, down from 356 in 4Q24, reflecting strategic repositioning and store migration.

Financial highlights

• Gross profit for 4Q25 was R$105.8 million, a 1.6% decrease year-over-year; gross margin was 51.9%.

• Operating expenses increased, with selling expenses up 2.8% and administrative expenses down 5.1% year-over-year.

• Consolidated EBITDA margin fell to 17.4% from 22.5% in 4Q24.

• Cash and equivalents at year-end were R$147.1 million, down R$60.1 million from 4Q24, mainly due to dividend payments.

• Investments in 4Q25 totaled R$8.5 million, up 2% year-over-year, focused on store remodeling.

Outlook and guidance

• Management highlights ongoing focus on operational efficiency, store repositioning, and prudent credit management amid challenging macroeconomic conditions.

• The agricultural joint venture faces margin pressure from lower commodity prices, especially cotton.