Veste delivers 2023 revenues growth of 4.6 percent

Gross revenue at Veste of 358 million Brazilian real in the fourth quarter, increased 3 percent, while in 2023, revenue of 1.4 billion Brazilian real, rose 4.6 percent versus 2022.

Gross profit for the quarter of 189.7 million Brazilian real, rose 1.5 percent and full year gross profit of 728.8 million Brazilian real increased 9.1 percent. Gross margin of 67.3 percent remained flat in the fourth quarter and rose 3 p.p. to 65.7 percent in 2023.

Highlights of Veste’s Q4 and full year results

The company’s fourth quarter EBITDA of 61.4 million Brazilian real rose 1 percent and full year adjusted EBITDA of 224.4 million Brazilian real increased 12 percent. The EBITDA margin of 21.8 percent remained stable in the fourth quarter, while the adjusted EBITDA margin of 20.2 percent in 2023, was up 1.4 p.p..

Adjusted net income reached 19.6 million Brazilian real in the quarter, with an adjusted net margin of 7 percent. In 2023, adjusted net income was 55.9 million Brazilian real, with an adjusted net margin of 5 percent.

The company’s B2C channel achieved gross revenue of 284.5 million Brazilian real, up 5.2 percent. In 2023, revenue of 1 billion Brazilian real, grew 7 percent. Digital sales, which include omnichannel, increased 12.5 percent versus 4Q22 and 7.3 percent versus 2022.

Consolidated same store sales growth was 6.8 percent in the quarter and 10.4 percent in 2023. B2B channel gross revenue of 45.9 million Brazilian real, declined 16.2 percent versus 4Q22.

The company said that considering the brands Le Lis, Bo.Bo and Dudalina, which have already completed their renovation process and excluding John John, which is still undergoing significant changes, SSS growth was 10.6 percent in the fourth quarter and 15 percent in the full year.

Veste’s performance across its brand portfolio

The company added that Le Lis ended 2023 with revenue reaching 653.2 million Brazilian real in 2023, up 12.8 percent, while in the fourth quarter, revenue was 180.1 million Brazilian real, up 12.9 percent.

Dudalina revenues, Veste said, in the fourth quarter of 56.3 million Brazilian real, rose 0.3 percent, impacted by the effects of its wholesale channel. In 2023, revenue reached 223.8 million Brazilian real, a slight drop of 1.2 percent versus 2022.

John John’s revenue in the quarter was 53.1 million Brazilian real, down 17.2 percent and 2023 revenues of 224.8 million Brazilian real, declined 11 percent.

Bo.Bo achieved revenue of 29.4 million Brazilian real in the quarter, an increase of 6.9 percent to 117.7 million Brazilian real in revenue, up 24.4 percent versus 2022. The company further said that concluding the quarter with same store sales growth of 10.1 percent, Bo.Bo is preparing to operationally scale its B2B channel

Individual brand revenue was 12.3 million Brazilian real, a drop of 27.3 percent, while at the end of the year, revenues reached 70.8 million Brazilian real, slightly down by 0.1 percent.

During the quarter, three stores were reopened using the new concept including Bo.Bo Fortaleza RioMar, Bo.Bo Salvador Barra and Le Lis Brasília Iguatemi and one new Dudalina Porto Alegre Barra Sul store was opened.