Q2 2026 Grendene SA Earnings Call (English, Portuguese) Transcript
Key Points
- Grendene SA (BSP:GRND3) reported growth in international market volume, up 4.8% in Q2 2026, driven by strong performance in Latin America.
- Gross margin improved to 48.2% in Q2 2026, supported by favorable raw material costs that offset labor pressures.
- E-commerce sales showed robust growth, with GMV up 12.1% and online sales representing 6.3% of domestic sales, up from 5.3% a year ago.
- Melissa brand maintained its premium positioning, with revenue per pair growing 6.0% despite a challenging consumer environment.
- The company maintained a robust cash position with R$1.5 billion in net cash, despite significant dividend distributions.
- Domestic market volume decreased 1.9% in Q2 2026, reflecting a challenging consumer environment with high debt levels and inflation impacting low-income consumers.
- Adjusted EBIT dropped 48.6% to R$95.3 million in Q2 2026, with margin contracting 2.2 percentage points due to a more accessible product mix.
- Net income was pressured by lower financial results, impacted by a 47% reduction in average invested balance due to extraordinary dividend payments.
- Gross revenue declined 3.2% in Q2 2026, with the domestic market retracting 5% and revenue per pair falling 5.8% in Division One brands.
- The company faces increased competition from Asian imports in both domestic and international markets, creating pricing pressure and requiring higher marketing investments.
Good morning, everyone, and thank you for your patience. Welcome to the video conference for the release of the second quarter of 2026 of Grandeni SA.
I want to remind 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 pressing the Mute Original Audio button.
Please note that this video conference is being recorded and will be made available on the company's investor relations website, rigrindent.com.br, where the full earnings release material can be accessed.
The presentation is also available for download via the chat icon, including 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. To ask a question, go to the bottom of your screen and
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