Vivara shares soared on the Sao Paulo stock exchange this Tuesday, clashing with the most negative tone of the Brazilian trading session, after the second quarter balance with a 23.5% increase in net profit compared to the same period of the year last year, to almost 110 million reais, between the increase in revenues and the expansion of margins.
The jewelery chain achieved revenues of 702.1 million reais, up 19.5% year on year, highlighting the significant increase in the participation of the Life category, which accounted for 34.8% of total sales, with a increase of 4.6 percentage points. Gross margin increased from 67.6% to 69.7%.
According to data released the day before, after the close of the market, adjusted Ebitda increased by 32.3%, to 132.4 million reais, with a margin of 23.6%, compared to 21.3% in the same time last year. In the period, the company recorded operating cash generation of almost 22 million reais.
“Vivara delivered another impressive set of quarterly results,” Itaú BBA analysts said in a report sent to clients. “Overall, this result should position Vivara as one of the best performers in the second-quarter earnings season.”
At 11:01 the shares had risen by 1.6%, to 30.42 reais, reversing the weakness of the open, when they fell to 29.13 reais. At the highest so far, they have reached 30.6 reais. At the same time, the Small Caps Index lost -0.95%.
“Second quarter results reinforce our positive view of the company, especially with regards to store expansion and healthy margins,” Safra analysts said in a report sent to clients reiterating “outperform” for the actions.
Source: Terra
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