For the Brazilian footwear group, gross margin grew by 210 basis points to 46.7 percent.
In the first quarter, EBIT at Grendene declined 48 percent to 47.8 million Brazilian reais (€7.4m). Net income contracted by 18.8 percent year-over-year to BRL113.4 million (€17.6m) from BRL139.7 million for the period ended March 31. Gross margin grew by 210 basis points to 46.7 percent.
Net Q1 revenues grew by 4.5 percent to BRL563.8 million (€87.5m) as domestic market sales fell by 1.6 percent to BRL519.7 million (€80.7m) and export sales grew nearly 39 percent to BRL185.7 million (€28.8m). South America is the primary destination of exports, but there was also notable growth in Paraguay, Columbia, and Peru. Although the US currently represents a small percentage of Grendene’s exports today, the company has identified opportunities to expand its presence in the market.
Unit volume rose 10.5 percent year-over-year to 25.3 million pairs. Export pairage increased by 21 percent to 7.6 million. Domestic market pairage, meanwhile, contracted by 10.5 percent to 25.3 million pairs due to a more cautious approach from distribution channels in early 2025. But the average price per pair increased by 22 percent due to a selective commercial strategy and an ongoing focus on higher value-added products.
