Companies

Grendene on a recovery trajectory

Aug 12, 2022 Brazil

The Brazilian footwear company announced results for the second quarter of 2022. Net revenue increased by 44.5%, as compared to the same period of 2021, reaching 517.2 million Brazilian reais (101.1 million USD)

"Our sales from April to June have confirmed our expectations. Despite the challenging domestic (with high inflation and high interest rates) and international (with the escalation of the conflict between Russia and Ukraine and restrictions in China due to the increase in cases of COVID-19) scenarios, we maintained the recovery trajectory observed since the end of the previous quarter", it can be read in the company’s statement.

Second Quarter Results

In the second quarter of 2022, Grendene's gross revenue increased by 46.5%, as compared to the same period of 2021, reaching 641.4 million Brazilian (125.4 million US dollars). This figure reflects an increase in sales volume of 34.9% year-over-year, or 31.7 million pairs.

Reflecting the increase in gross revenue, the company's net revenue grew by 44.5% in the second quarter of the current fiscal year, totalling 517.2 million Brazilian reais (101.1 million US dollars), as compared to the same quarter of the prior year.

From April to June, the company's gross profit declined to 39.3%, amounting to 176.9 million Brazilian reais (34.6 million US dollars), while gross margin decreased 1.3 percentage points to 34.2%, on a comparable basis to the similar period of 2021.

Net profit rose totalled 65.7 million Brazilian reais (12.8 million US dollars) in this quarter, up by 98.0%, as compared to the second quarter of 2021.

The company added that despite being "aware of the numerous near-term concerns", it is entering the second half of the year, which usually accounts for approximately 60% of total sales, with optimism, continuing to pursue its goals of increasing revenue, volume, and margins.

Image Credits: site.tc.com.br

Brazil Companies Grendene Quarter Results Results Shoes