Reported Earnings • May 20
Third quarter 2026 earnings released Third quarter 2026 results: Revenue: R$220.2m (flat on 3Q 2025). Net income: R$10.8m (up 29% from 3Q 2025). Profit margin: 4.9% (up from 3.8% in 3Q 2025). New Risk • May 20
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 24% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 13% per year over the past 5 years. High level of non-cash earnings (24% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Market cap is less than US$100m (R$411.9m market cap, or US$81.6m). Reported Earnings • Feb 22
Second quarter 2026 earnings released: EPS: R$0.041 (vs R$0.37 in 2Q 2025) Second quarter 2026 results: EPS: R$0.041 (down from R$0.37 in 2Q 2025). Revenue: R$180.8m (down 4.5% from 2Q 2025). Net income: R$1.98m (down 89% from 2Q 2025). Profit margin: 1.1% (down from 9.3% in 2Q 2025). The decrease in margin was primarily driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. New Risk • Dec 17
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Brazilian stocks, typically moving 6.2% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 2.3% per year over the past 5 years. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (6.2% average weekly change). Market cap is less than US$100m (R$288.6m market cap, or US$52.2m). Reported Earnings • Nov 18
First quarter 2026 earnings released First quarter 2026 results: Revenue: R$197.2m (down 7.8% from 1Q 2025). Net income: R$13.6m (up 46% from 1Q 2025). Profit margin: 6.9% (up from 4.3% in 1Q 2025). The increase in margin was driven by lower expenses. Duyuru • Nov 01
Pettenati S.A. Industria Têxtil announces Annual dividend, payable on May 31, 2026 Pettenati S.A. Industria Têxtil announced Annual dividend of BRL 0.1249 per share payable on May 31, 2026, ex-date on October 31, 2025 and record date on October 30, 2025. Reported Earnings • Sep 26
Full year 2025 earnings released: EPS: R$0.89 (vs R$0.40 in FY 2024) Full year 2025 results: EPS: R$0.89 (up from R$0.40 in FY 2024). Revenue: R$854.1m (up 14% from FY 2024). Net income: R$42.5m (up 121% from FY 2024). Profit margin: 5.0% (up from 2.6% in FY 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 28% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Duyuru • Sep 26
Pettenati S.A. Industria Têxtil, Annual General Meeting, Oct 28, 2025 Pettenati S.A. Industria Têxtil, Annual General Meeting, Oct 28, 2025. Location: rodovia estadual rsc 453, km 2,4, city of caxias do sul, state of rio grande do sul., Brazil Reported Earnings • May 15
Third quarter 2025 earnings released Third quarter 2025 results: Revenue: R$220.9m (up 12% from 3Q 2024). Net income: R$8.35m (up 30% from 3Q 2024). Profit margin: 3.8% (up from 3.2% in 3Q 2024). The increase in margin was driven by higher revenue. New Risk • Feb 17
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 1.4x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.4x net interest cover). High level of non-cash earnings (28% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Market cap is less than US$100m (R$369.8m market cap, or US$64.8m). Valuation Update With 7 Day Price Move • Jan 30
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to R$6.69, the stock trades at a trailing P/E ratio of 14.5x. Average trailing P/E is 8x in the Luxury industry in Brazil. Total returns to shareholders of 21% over the past three years. Reported Earnings • Nov 19
First quarter 2025 earnings released First quarter 2025 results: Revenue: R$214.0m (up 20% from 1Q 2024). Net income: R$14.6m (up 128% from 1Q 2024). Profit margin: 6.8% (up from 3.6% in 1Q 2024). The increase in margin was driven by higher revenue. Duyuru • Sep 21
Pettenati S.A. Industria Têxtil, Annual General Meeting, Oct 23, 2024 Pettenati S.A. Industria Têxtil, Annual General Meeting, Oct 23, 2024. Reported Earnings • Sep 20
Full year 2024 earnings released Full year 2024 results: Revenue: R$746.5m (down 11% from FY 2023). Net income: R$19.2m (down 61% from FY 2023). Profit margin: 2.6% (down from 5.8% in FY 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 19% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Aug 31
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to R$7.26, the stock trades at a trailing P/E ratio of 11.2x. Average trailing P/E is 10x in the Luxury industry in Brazil. Total returns to shareholders of 33% over the past three years. New Risk • May 22
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 3.0% Last year net profit margin: 5.3% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (3.0% net profit margin). Market cap is less than US$100m (R$390.3m market cap, or US$76.3m). Reported Earnings • May 18
Third quarter 2024 earnings released Third quarter 2024 results: Revenue: R$197.6m (down 9.9% from 3Q 2023). Net income: R$6.41m (down 73% from 3Q 2023). Profit margin: 3.2% (down from 11% in 3Q 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has increased by 12% per year, which means it is well ahead of earnings. Reported Earnings • Nov 19
First quarter 2024 earnings released First quarter 2024 results: Revenue: R$177.9m (down 21% from 1Q 2023). Net income: R$6.40m (down 45% from 1Q 2023). Profit margin: 3.6% (down from 5.1% in 1Q 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 29% per year whereas the company’s share price has increased by 25% per year. Reported Earnings • Oct 01
Full year 2023 earnings released: EPS: R$1.02 (vs R$1.41 in FY 2022) Full year 2023 results: EPS: R$1.02 (down from R$1.41 in FY 2022). Revenue: R$841.2m (flat on FY 2022). Net income: R$49.0m (down 27% from FY 2022). Profit margin: 5.8% (down from 8.0% in FY 2022). Over the last 3 years on average, earnings per share has increased by 40% per year but the company’s share price has only increased by 25% per year, which means it is significantly lagging earnings growth. New Risk • Jun 19
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 5.7% Last year net profit margin: 11% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (5.7% net profit margin). Market cap is less than US$100m (R$349.0m market cap, or US$72.4m). Valuation Update With 7 Day Price Move • Apr 26
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to R$6.35, the stock trades at a trailing P/E ratio of 6.8x. Average trailing P/E is 15x in the Luxury industry in Brazil. Total returns to shareholders of 76% over the past three years. Reported Earnings • Feb 14
Second quarter 2023 earnings released: EPS: R$0.26 (vs R$0.78 in 2Q 2022) Second quarter 2023 results: EPS: R$0.26 (down from R$0.78 in 2Q 2022). Revenue: R$196.2m (up 3.1% from 2Q 2022). Net income: R$12.5m (down 67% from 2Q 2022). Profit margin: 6.4% (down from 20% in 2Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 54% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Board Change • Nov 16
No independent directors Following the recent departure of a director, there are no independent directors on the board. The company's board is composed of: No independent directors. 4 non-independent directors. Director Massao Oya was the last director to join the board, commencing their role in 2021. The company's lack of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Sep 28
Full year 2022 earnings released: EPS: R$1.41 (vs R$1.18 in FY 2021) Full year 2022 results: EPS: R$1.41 (up from R$1.18 in FY 2021). Revenue: R$844.0m (up 11% from FY 2021). Net income: R$67.5m (up 20% from FY 2021). Profit margin: 8.0% (up from 7.4% in FY 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 63% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jun 28
Investor sentiment improved over the past week After last week's 16% share price gain to R$5.70, the stock trades at a trailing P/E ratio of 2.8x. Average trailing P/E is 8x in the Luxury industry in Brazil. Total returns to shareholders of 68% over the past three years. Valuation Update With 7 Day Price Move • May 19
Investor sentiment improved over the past week After last week's 15% share price gain to R$5.25, the stock trades at a trailing P/E ratio of 3.4x. Average trailing P/E is 10x in the Luxury industry in Brazil. Total returns to shareholders of 86% over the past three years. Board Change • Apr 27
No independent directors Following the recent departure of a director, there are no independent directors on the board. The company's board is composed of: No independent directors. 4 non-independent directors. Director Massao Oya was the last director to join the board, commencing their role in 2021. The company's lack of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Feb 18
Second quarter 2022 earnings: Revenues and EPS in line with analyst expectations Second quarter 2022 results: EPS: R$0.78 (up from R$0.33 in 2Q 2021). Revenue: R$190.2m (up 8.9% from 2Q 2021). Net income: R$37.5m (up 135% from 2Q 2021). Profit margin: 20% (up from 9.1% in 2Q 2021). The increase in margin was primarily driven by higher revenue. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 47% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Dec 01
Investor sentiment deteriorated over the past week After last week's 17% share price decline to R$5.91, the stock trades at a trailing P/E ratio of 5.4x. Average trailing P/E is 14x in the Luxury industry in Brazil. Total returns to shareholders of 103% over the past three years. Reported Earnings • Nov 20
First quarter 2022 earnings released: EPS R$1.93 (vs R$0.27 in 1Q 2021) The company reported a soft first quarter result with weaker earnings and profit margins, although revenues improved. First quarter 2022 results: Revenue: R$200.1m (up 7.2% from 1Q 2021). Net income: R$9.25m (down 27% from 1Q 2021). Profit margin: 4.6% (down from 6.8% in 1Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 30% per year whereas the company’s share price has increased by 34% per year. Reported Earnings • Sep 19
Full year 2021 earnings released The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: R$758.1m (up 60% from FY 2020). Net income: R$53.1m (up R$55.3m from FY 2020). Profit margin: 7.0% (up from net loss in FY 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has increased by 32% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Aug 18
Investor sentiment deteriorated over the past week After last week's 19% share price decline to R$6.10, the stock trades at a trailing P/E ratio of 11x. Average trailing P/E is 26x in the Luxury industry in Brazil. Total returns to shareholders of 127% over the past three years. Reported Earnings • Jun 03
Third quarter 2021 earnings released: EPS R$0.21 (vs R$0.082 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: R$179.3m (up 21% from 3Q 2020). Net income: R$11.5m (up 194% from 3Q 2020). Profit margin: 6.4% (up from 2.7% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has increased by 32% per year, which means it is well ahead of earnings. Is New 90 Day High Low • Feb 28
New 90-day low: R$4.62 The company is down 2.0% from its price of R$4.70 on 30 November 2020. The Brazilian market is up 1.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Luxury industry, which is down 13% over the same period. Reported Earnings • Feb 21
Second quarter 2021 earnings released: EPS R$0.33 (vs R$0.021 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: R$174.7m (up 45% from 2Q 2020). Net income: R$4.40m (up 341% from 2Q 2020). Profit margin: 2.5% (up from 0.8% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 43% per year but the company’s share price has increased by 16% per year, which means it is well ahead of earnings. Is New 90 Day High Low • Jan 19
New 90-day high: R$5.20 The company is up 12% from its price of R$4.64 on 21 October 2020. The Brazilian market is up 19% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Luxury industry, which is up 7.0% over the same period. Is New 90 Day High Low • Dec 30
New 90-day high: R$5.10 The company is up 9.0% from its price of R$4.70 on 01 October 2020. The Brazilian market is up 23% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Luxury industry, which is up 15% over the same period. Is New 90 Day High Low • Dec 03
New 90-day high: R$5.12 The company is up 3.0% from its price of R$4.96 on 04 September 2020. The Brazilian market is up 9.0% over the last 90 days, indicating the company underperformed over that time. However, its price trend is similar to the Luxury industry, which is also up 3.0% over the same period. Is New 90 Day High Low • Oct 30
New 90-day low: R$4.45 The company is down 11% from its price of R$4.98 on 31 July 2020. The Brazilian market is down 7.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Luxury industry, which is up 11% over the same period. Reported Earnings • Oct 04
Full year earnings released - R$0.045 loss per share Over the last 12 months the company has reported total losses of R$2.18m, with earnings decreasing by R$26.5m from the prior year. Total revenue was R$473.9m over the last 12 months, down 14% from the prior year. 