Q4 2024 Grendene SA Earnings Call (English, Portuguese) Transcript
Key Points
- Grendene SA (BSP:GRND3) reported a 12% growth in gross revenue for the fourth quarter of 2024 compared to the same period in 2023.
- The company's recurring EBIT saw a robust growth of 38.8%, reaching BRL217.6 million, with a margin increase of 4.7 percentage points.
- Melissa brand continued its positive trajectory with a 16.7% increase in revenue and a 3.4% growth in volume.
- Exports showed strong performance with a 31.9% increase in revenue and a 12.8% growth in volume, outperforming the general Brazilian footwear export market.
- Grendene SA maintained a consistent history of profitability, with positive results in 80 out of 81 quarters since becoming a public company.
- Division 1 brands experienced a 10.7% decrease in sellout during the fourth quarter, impacted by high inflation, interest rates, and exchange rate volatility.
- The female collections, particularly Zaxy, underperformed compared to the previous year, affecting overall brand performance.
- The external market faced challenges due to political and economic crises in key export countries, leading to increased protectionism and logistical issues.
- The company's COGS increased by 6%, which would have been higher without tax incentives, indicating pressure on production costs.
- Grendene SA's partnership with 3G Radar ended due to differing investment timelines and lower-than-expected sales, highlighting challenges in international expansion.
Welcome everyone to the video conference to the results of the fourth quarter of '24 of Grendene SA. I want to remind you those who require simultaneous translation that we offer this function on the platform to access, simply click on the interpretation button through the globe icon at the bottom of the screen, and choose your preferred language, either Portuguese or English.
Anyone watching the video conference in English can mute the original audio in Portuguese by clicking the mute original audio button. We informed that this video conference is being filmed and it will be made available on the company's RI website, ri.grendene.com.br, where you can also find our press release for the first quarter '24.
You can download the presentation from the chat icon, which will also be available in English. During the company's presentation, all participants will have their microphones turned off.
After that, we are going to start the question and answer session. (Operator Instructions)
We would like to emphasize that the information in this presentation, along with any
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