In This Article:
-
Volume: 26.7 million pairs in Q2, with a margin withdrawal of 4%.
-
Gross Revenue Growth: 3.1% overall; 1.5% in the internal market and 12.4% in the external market.
-
Gross Profit: BRL204.7 million, an increase of 8%.
-
Gross Margin: Increased by 1.7 percentage points to 42.6%.
-
Recurring EBIT Growth: 47.6%, reaching BRL42.4 million.
-
Recurring Net Profit: BRL61.7 million, a decrease of 27.1%.
-
E-commerce Growth: 20% increase in gross revenue.
-
Melissa Brand Performance: 9.4% growth in gross revenue; 11.6% increase in volume.
-
Export Performance: 12.4% growth in revenue in reais; 16.3% increase in volume.
-
Operational Expenses: Represented 38% of net revenue, showing improved efficiency.
-
Advertising and Publicity Expenses: Increased by 29.7% due to investments in foreign markets.
-
Dividend Distribution: BRL13.2 million to be distributed in Q2.
Release Date: August 09, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Grendene SA (BSP:GRND3) reported a growth in gross revenue by 3.1%, with a notable increase of 12.4% in the external market.
-
The company achieved a gross profit growth of 8%, reaching BRL204.7 million, with an improved gross margin of 42.6%.
-
Melissa brand showed strong performance with a 9.4% increase in gross revenue and a 25.1% growth in sellout.
-
E-commerce gross revenue grew by 20%, indicating a successful digital strategy.
-
The company maintained efficient management of operational expenses, with administrative expenses growing only 2.1%, under the inflation rate.
Negative Points
-
The internal market faced challenges with high interest rates and inflation impacting consumer purchasing power, particularly among low-income populations.
-
Recurring net profit decreased by 27.1%, primarily due to lower financial results and taxation impacts.
-
The volume of pairs sold in the domestic market decreased by 3.1%, with a specific decline in the Ipanema series.
-
The international market is experiencing a slowdown, affecting consumption habits, particularly in North America and Europe.
-
The company faced a 30% decrease in sales in the Southern region of Brazil due to the impact of floods in Rio Grande do Sul.
Q & A Highlights
Q: What is the expectation for cash generation and its potential use, particularly regarding share buybacks? A: Alceu De Albuquerque, CFO and Investor Relations Officer, stated that Grendene is a strong cash-generating company and does not foresee any changes in this aspect. The board approved a share repurchase program, and if deemed appropriate by the Board of Directors, they may proceed with buybacks, although nothing is currently planned.