Grupo SBF (SBFG3) Q2 2025 earnings summary

Executive summary

• Achieved record net revenue of R$1.8 billion in 2Q25, up 6.1% year-over-year, with both Centauro and Fisia contributing to growth.

• Net income increased 19.1% year-over-year to R$87.2 million, with profit expansion despite FX headwinds and strategic investments.

• Launched a new strategic plan focused on growth, retail renewal, and digital evolution, following successful deleveraging.

• Initiatives in both business units target improved customer experience, digital platforms, and operational efficiency.

• Completed deleveraging cycle, reducing net debt/EBITDA to 0.68x in 2Q25, down 33.1% year-over-year.

Financial highlights

• Net revenue grew 6.1% year-over-year, with Centauro and Fisia both expanding across all channels.

• Centauro's net revenue reached R$940.7 million (+9.4%), with digital channel sales up 17.8% and physical stores up 7.0%.

• Fisia's net revenue grew 5.6% to R$1.0 billion, with wholesale up 4.4%, digital up 5.1%, and physical stores up 8.2%.

• Adjusted EBITDA (ex-IFRS) was R$167.4 million, margin at 9.2% (-1.1 p.p.), impacted by FX and strategic plan expenses.

• Operating cash flow was negative BRL 54 million or R$179.5 million, reflecting inventory build-up for growth.

Outlook and guidance

• Q2 and Q3 are transition quarters; major benefits from investments expected in Q4 and next year.

• Management expects continued growth in Centauro and Fisia, with investments in store renovations and digital enhancements.

• Fisia's wholesale channel is expected to recover gradually, supported by new orders and improved customer service.

• Tax incentives in Fisia's channels are expected to mitigate FX impacts and preserve margins.

• No significant price changes expected in Fisia; focus remains on strategic pricing and channel balance.