Nelson Kaufman, major shareholder and founder of Vivara (VIVA3), has resigned as the company’s CEO, just over a week after the retailer announced his return to the CEO role.
OR Vivara board of directors approved the appointment of Nelson Kaufman for the position of chairman of the board, and Otavio Lyra for the position of CEO of the company. Lyra will continue to serve as interim director of finance and investor relations.
OR Vivara’s advice will convene the shareholders’ meeting to ratify the appointments, as well as to decide on the statutory changes necessary for the new composition of the board.
At the same meeting, Maria Carolina Ferreira Lacerda was appointed to fill the vacancy on the board of directors and João Cox Neto was appointed vice president of the board of directors.
Last Friday (22), Vivara communicated to the market that Kaufman increased his stake in the company to 61,393,019 ordinary shares, equal to 26.22% of the total.
In his correspondence with Vivara, Kaufman explained that the objective of the investments is strictly investment and does not aim to change the share control or administrative structure of the company.
In one report, theXP (XPBR31) stressed that it views Vivara’s announcement as a “positive course adjustment”, as it should avoid abrupt strategic changes.
“Mr. Lyra has strong experience within the company, having joined Vivara shortly before its IPO and being part of Life’s expansion process. We believe the role of President is best suited for Mr. Kaufman , as it provides a broader picture and broader strategic role, which should support the company’s key strategic decisions,” said analysts Danniela Eiger, Gustavo Senday and Laryssa Sumer.
For XP, although the announcement aims to implement a more professional corporate structure and is expected to be well received by the market, it is believed that the market may place a governance discount on the company in light of recent events.
“Additionally, potential new changes, such as the selection of a new CFO, add uncertainty to the investment thesis. However, we believe today’s announcement signals Mr. Kaufman’s intent not to make disruptive changes to the company’s strategy,” they write .
XP maintained its “buy” recommendation for Vivara sharesas it foresees no disruptions in the company’s strategic guidelines, while the stock trades at 13.3x P/E 2024e after a sharp recent decline.
Vivara (VIVA3): profit drops by 8.6% in the fourth quarter of 2023, to R$144.1 million
Vivara reported net profit of R$144.1 million in the fourth quarter of 2023 (4Q23), down 8.6% compared to the same period last year, according to results released last Wednesday (20).
According to the balance sheet, the company achieved a turnover of R$ 1 billion, up 24% compared to 4Q22, “with relevant progress in all categories and all channels”, he underlined.
The company’s net revenue in Q4’23 was R$778.1 million, up 20.8% from a year earlier. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) reached R$200.4 million, with an adjusted EBITDA margin of 25.8%, an expansion of 1.9 percentage points compared to 4Q22 .
Same-store sales (SSS of physical stores + e-commerce) reached 15.0% in the last 12 months. Vivara digital sales reached R$175.5 million, 32.7% higher than in 4Q22, representing a 17.3% share of total sales, 1.2 percentage points higher than recorded penetration in the same quarter of the previous year.
According to the company, the result reflects, among other factors, “the strength of Black Friday in the digital channel, with a 10% growth in the number of orders in the period, and the continuous improvement of the operational indicators of the new platform implemented in 2H22″ .
Vivara ended 4Q23 with a 19.6% share of the Brazilian jewelry market, with 9.8% for the Vivara jewelry category, 6.9% for life and 2.9% for other categories.
According to Vivara, with the sharp increase in the expansion of exclusive Life-branded stores in recent years, the share of Life revenue from the physical channel has grown significantly, now representing 22%, a share of 6.8 pp more than to the fourth quarter of 2022.
At the end of the quarter, revenue at the brand’s 33 mature stores grew 25.7% compared to the same period a year earlier. “In 2023, growth was 31.2%. Considering the last 12 months, mature stores achieved an average turnover of R$6.4 million,” said the Vivara.
Vivara stock performance
Source: Terra
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