Grupo SBF (SBFG3) Q1 2025 earnings summary

Executive summary

• Net revenue reached a record BRL 1.6 billion in Q1 2025, up 4% year-over-year, with gross profit of BRL 772.3 million (+5.8%) and gross margin expanding 0.9 p.p. to 49.7%.

• Net income surged 40.6% to BRL 74.2 million, with net margin at 4.8% (+1.3 p.p.), driven by improved financial results and operational efficiency.

• Adjusted EBITDA (ex-IFRS) fell 9.2% to BRL 144.5 million, margin down 1.3 p.p. to 9.3%, mainly due to Fisia's wholesale performance.

• Working capital management improved, reducing the financial cycle by 19 days and leverage to 0.61x from 1.33x in 1Q24.

• Strategic investments and share buybacks were prioritized to support medium-term growth and market leadership.

Financial highlights

• Net revenue: BRL 1.6 billion (+4% YoY); gross profit: BRL 772 million (+5.8% YoY); gross margin: 49.7% (+0.9 p.p. YoY).

• EBITDA: BRL 144.5 million (-9.2% YoY); EBITDA margin: 9.3% (-1.3 p.p. YoY).

• Net profit: BRL 74.2 million (+40.6% YoY); net margin: 4.8% (+1.3 p.p. YoY).

• LTM net revenue: BRL 7.2 billion (+2.8%); LTM EBITDA: BRL 757 million (+19.8%); LTM net profit: BRL 439 million (+66.5%).

• Net debt reduced by 44.9% to BRL 464.7 million; leverage at 0.61x (vs. 1.33x in 1Q24).

Outlook and guidance

• Management expects wholesale recovery in H2 2025, supported by strong order book and no cancellations.

• Continued focus on digital growth, store modernization, and leveraging tax incentives to support profitability.

• Confident in capital structure to support growth initiatives despite macroeconomic challenges.