Companies

Grendene shows resilience amid challenging environment

Nov 18, 2025 Brazil

The parent company of Melissa and Ipanema has reported revenue growth in the year to September, driven by exports and increased prices per pair. However, profitability came under pressure in the third quarter

“During the first nine months of 2025, the macroeconomic environment remained challenging, reflecting the continuation of the pressures observed since late 2024. Exchange rate volatility and inflationary pressures continued to affect consumers’ purchasing power across several markets, impacting sales volumes and demand dynamics”, reads the Brazilian company’s statement.

Results

In the third quarter of the 2025 financial year, Grendene reported a total revenue of 1.02 billion Brazilian reais (165.2 million euros), marking a 10.6% year-on-year increase on a comparable basis to the same period of last year. In the first nine months of the year, gross revenue reached 2.5 billion Brazilian reais (405.0 million euros), representing year-on-year growth of 13.3%.

This was achieved despite lower shipment volumes, reflecting an increase of 23.2% in gross revenue per pair in the quarter and 22.0% year-to-date.

Nevertheless, while the company’s gross revenue increased by 86.1% year-on-year in foreign markets to 253.6 million Brazilian reais (41.0 million euros) in the third quarter, it decreased by 2.4% year-on-year to 771.3 million Brazilian reais (124.9 million Brazilian reais) in domestic markets. This trend was observed throughout the year to date.

“In the domestic market, the company continued to operate in a challenging environment, characterized by constrained household purchasing power, which is still affected by elevated levels of indebtedness — and by the intensification of competitive pressures”, highlighted Grendene.

In the third quarter of the year, the company’s net revenue amounted to 760.1 million Brazilian reais (123.1 million euros), rising to 1.88 billion reais (304.5 million euros) over the first nine months of the year. This reflects respective increases of 1.4% and 6.2% compared to the same periods the previous year.

In the third quarter of 2025, Grendene’s recurring EBIT fell by 25.6% to 117.9 million Brazilian reais (19.1 million euros), with the margin dropping by 4.4 percentage points to 16.7%. In the first nine months of the year, recurring EBIT declined by 15.8% to 244.8 million Brazilian reais (39.7 million euros), with the margin standing at 14.1%.

Including non-recurring effects, reported EBIT totalled 75.7 million Brazilian reais (12.3 million euros) in the third quarter and 168.9 million Brazilian reais (27.4 million euros) in the first nine months, both of which were well below last year's levels.

In the third quarter, the company’s adjusted net income reached 184.5 million Brazilian reais (29.9 million euros), marking a year-on-year decline of 22.9%, with the margin falling to 26.2%. In the first nine months of 2025, however, adjusted net income increased by 18.0% to 529.8 million Brazilian reais (85.8 million euros), with a margin of 30.5%.

On a reported basis, net income totalled 138.5 million Brazilian reais (22.4 million euros) in the quarter and 395.4 million Brazilian reais (64.1 million euros) in the year-to-date, with both figures showing lower margins than a year earlier.

1 BRL = 0,16 EUR

Image Credits: valor.globo.com

Brazil Companies Footwear Grendene Quarter Results Results