Grendene SA
BOVESPA:GRND3
Grendene SA
Grendene SA engages in the development, manufactures distribution, and sale of footwear. The company is headquartered in Sobral, Ceara and currently employs 17,192 full-time employees. The company went IPO on 2004-10-29. The firm's activities are divided into two business segments: Footwear and Furniture. The Footwear division develops, manufactures, distributes and sells shoes for various uses and for all social classes, in the male, female, child and mass market segments. Its brand names portfolio includes Rider, Ipanema, Zaxi, Grendha, Grendene Kids and Melissa, among others. The Furniture division focuses on the sale, import and export of furniture and supplements made from plastic. The firm sells its products through commercial representatives, distributors and direct export. The company operates a number of manufacturing plants in Brazil. The company controls Grendene Argentina SA, MHL Calcados Ltda and Grendene USA Inc, among others.
Grendene SA engages in the development, manufactures distribution, and sale of footwear. The company is headquartered in Sobral, Ceara and currently employs 17,192 full-time employees. The company went IPO on 2004-10-29. The firm's activities are divided into two business segments: Footwear and Furniture. The Footwear division develops, manufactures, distributes and sells shoes for various uses and for all social classes, in the male, female, child and mass market segments. Its brand names portfolio includes Rider, Ipanema, Zaxi, Grendha, Grendene Kids and Melissa, among others. The Furniture division focuses on the sale, import and export of furniture and supplements made from plastic. The firm sells its products through commercial representatives, distributors and direct export. The company operates a number of manufacturing plants in Brazil. The company controls Grendene Argentina SA, MHL Calcados Ltda and Grendene USA Inc, among others.
Revenue Growth: Grendene reported a 25.1% increase in gross revenue for Q2, with growth concentrated in the domestic market despite a challenging macro environment.
Volume Trends: Total volume grew 1.2% in Q2, with domestic shipments up but exports declining by 3.2%.
Profit & Margins: Gross profit rose 25.1% but gross margin fell slightly to 42%, mainly due to higher labor costs and lower-than-expected volumes.
GGB Consolidation: The acquisition of GGB significantly impacted reported results, especially in revenue and expenses, driven by higher-value online sales.
Net Profit Surge: Recurring net profit soared 200.6% to BRL 185.5 million, heavily boosted by a 340% jump in financial results.
Dividend Payout: Grendene announced a dividend of 0.45 per share, to be paid on September 10, 2025, to shareholders as of August 22.
No Buyback or Delisting: Management confirmed no plans for a significant share buyback or to take the company private.
Outlook & Challenges: High inflation and interest rates, plus competitive pressure and weather, are creating uncertainty, but management expects a return to normalized labor costs.
