“…the early months of 2025 continued to reflect the challenging environment observed in the final quarter of 2024.  The period remained marked by significant macroeconomic uncertainties, resulting from the combination of domestic pressures, volatility in international markets and geopolitical instability, which continues to impact the confidence of economic agents and business dynamics. Despite this adverse backdrop, the company achieved growth in gross revenue, along with expansions in gross margin, recurring EBIT margin, and recurring net margin. Export performance was also notably strong”, said the company in the statement.

First Quarter Results

In the first quarter of 2025, Grendene recorded gross revenue of 705.4 million Brazilian reais (111.8 million euros), representing a 6.5% increase, on a comparable basis to the same period last year.

This was primarily driven by the foreign market, where exports grew by 38.5% to 185.7 million reais (29.4 million euros), supported by a 21.1% increase in volume and a 14.3% rise in the average price per pair.

Grendene emphasised that it is monitoring US tariffs, which now include a 10% levy on its products. The company believes that this cost will be reflected in pricing, which could benefit Brazilian firms such as Grendene, as buyers seek alternatives to Chinese goods.

In the domestic market, the company’s gross revenue amounted to 519.7 million Brazilian reais (82.4 million euros) in the first quarter of 2025, a decline of 1.6%, as compared to the same period last year. The decrease was driven by a 19.6% decline in volume due to cautious distribution, partially offset by a 22.4% rise in average unit price, reflecting a focus on higher-value products.

Overall, in the first quarter of the year, Grendene reported a net revenue growth of 4.5%, on a comparable basis to the same period of 2024, reaching 563.8 million Brazilian reais (89.4 million euros).

Between January and March, the Brazilian company’s recurring EBIT increased by 6.9% year-on-year to 96.5 million Brazilian reais (15.3 million euros), with the gross EBIT margin improving by 0.4 percentage points year-on-year to 17.1%. Grendene’s first quarter recurring net profit rose by 8.2% year-on-year to 159.8 million Brazilian reais (25.3 million euros).