Brazil · Delayed Price · Currency is BRL Grendene Earnings Call Transcripts
Fiscal Year 2026
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Q2 2026 saw revenue and net income declines amid challenging domestic demand, but international growth, cost control, and stable gross margins helped preserve profitability. Strong cash position was maintained despite large dividend payouts, and management expects margin recovery in H2.
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Challenging domestic and international markets led to lower revenue and profit, with a shift toward affordable products and strong online sales growth for Melissa. Dividend policy remains unchanged, and extraordinary charges impacted results.
Fiscal Year 2025
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Revenue and profit declined year-over-year due to lower volumes and macroeconomic pressures, but margins remained healthy and cash generation was strong, enabling significant dividend payouts. Online and value-added product sales grew, while international and domestic markets faced headwinds.
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Q3 2025 saw strong export and e-commerce growth, but domestic sales declined due to inflation, high interest rates, and competition. GGB consolidation boosted external revenue, while Melissa brand outperformed with premium products. Dividend distribution and real estate investments remain key focus areas.
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Q2 shipments rose 1.2%, while price and mix supported revenue growth; labor costs and weaker sell-out pressured operations. H1 recurring net profit rose 64.9%, despite lower recurring EBIT.
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Gross revenue rose 6.5% year-over-year despite a 10.5% volume drop, driven by price adjustments and export growth. Margins improved, and GGB restructuring is underway, with breakeven targeted for 2027–2028. Dividend payments remain strong.
Fiscal Year 2024
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Fourth quarter 2024 delivered double-digit growth in revenue, profit, and margins, with strong export performance and robust results from the Melissa brand and e-commerce. Management adjusted for non-operational items and expects stable COGS in 2025.
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Q3 2024 delivered strong revenue and margin growth, led by domestic market and Melissa brand, while exports declined amid global headwinds. Recurring net profit surged 45.9%, and dividend yield stands at 5.1%.
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Revenue and margins grew in Q2 2024 despite challenging markets, with strong export and Melissa brand performance. Gross margin improved to 42.6%, recurring EBIT rose 47.6%, and a share repurchase program was approved.