After a governance crisis, Vivara sees its shares appreciate 33% in 2025

Vivara was experiencing growth in 2024, until a CEO change raised eyebrows in the market. In March of that year, the company announced the return of its founder and largest shareholder, Nelson Kaufman, as its new CEO, replacing his nephew Paulo Kruglensky, which created a potential conflict of interest.

Known in the financial market as "Nelson Day," the company lost R$1.5 billion in market value on the day the Material Fact was published. The company saw a 9% drop in a single day. The market's message was so powerful that Kaufman resigned a few days later, making way for Otavio Lyra.

When contacted to comment on its trajectory, Vivara is in a period of silence and cannot comment until the release of its second-quarter financial statements, expected on August 7th.

Market sources consulted by IstoÉ Dinheiro stated that Kaufman's return to the company's leadership generated "bad humor" in the market, as the company's founder and largest shareholder had been away from Vivara for years and suddenly returned, with "outdated management ideas."

Months later, with Lyra's departure, Ícaro Botelho took over, but suspicions remained, as the departure of numerous directors who criticized the company's work environment began to appear on social media.

Another point raising questions in the market is the company's family-run management style. Levante Inside Capital analyst Carol Sanchez said the devaluation at the time was due to Vivara being a company where the family still holds significant power, despite being publicly traded, and this ultimately fuels market distrust.

"Changes of this magnitude, such as a CEO transition, end up generating uncertainty and volatility. Vivara can be considered a family business, with the family predominantly in charge, which can heighten the perception of risk during leadership transitions," he explained.

The company closed 2024 with a profit of R$653 million, an increase of 71.4% compared to 2023. In addition, it recorded Gross Revenue Net of Returns of more than R$3.3 billion, an increase of 17.3% compared to the same period last year, and Adjusted EBITDA of R$657.5 million, the highest level ever recorded, representing an increase of 37.1% compared to 2023.

Vivara opened more than 70 stores in 2024, including Vivara, Life and Quiosques, and ended the year with 456 stores in Brazil and 1 store in Panama.

The company's shares are also recovering: in 2025, the share price appreciated by 33.16% compared to 11.43% for the Ibovespa.

On July 18, in a Material Fact, Vivara announced another change in the company's top management. Due to health issues, Nelson Kaufman will step down as chairman of the board, being replaced by his daughter, Marina. Paulo Kruglensky will also return to the board after stepping down as CEO in 2024. The company, however, stated that there will be no further change in CEO.

"I see this as positive. Kruglensky's return brings more stability to governance, as he has a solid track record with the company and is highly respected by the market. Marina's arrival indicates a strengthening of family leadership, something that can help reduce and mitigate some of the risks of strategic execution and improve the market's perception of governance. I believe Vivara has a good chance of maintaining its solid performance," Sanchez believes.