Grendene (GRND3) investor relations material

Executive summary

• Domestic demand was pressured by high interest rates, constrained income, and increased indebtedness, while competition from imports intensified and inventory adjustments impacted sell-in volumes.

• Operational focus was on pricing, product mix, and margin preservation, with production and cost structure adjusted to new demand levels.

• Export performance was negatively impacted by US tariffs, Middle East instability, and order anticipation, leading to lower export volumes and revenues.

• Strong operating cash generation and robust financial income supported capital allocation, including R$ 1.4 billion in dividends approved for 2025.

• Challenging macroeconomic conditions and selective consumer demand pressured volumes and margins, especially in the domestic market.

Financial highlights

• Gross revenue for 4Q25 was R$ 915.7 million, down 12.2% year-over-year; gross profit fell 27.1% to R$ 318.9 million; volume dropped 19.8%.

• Net revenue for 4Q25 was R$ 705.1 million, down 18.0% year-over-year; full-year net revenue was R$ 2.58 billion, down 1.7%.

• For FY2025, gross revenue grew 5.1% to R$ 3,401.7 million, but volume declined 11.1%.

• Recurring EBIT for 4Q25 was R$ 122.5 million, down 43.7%; recurring net profit for 4Q25 was R$ 286.1 million, down 17.7%.

• Recurring net profit for FY2025 rose 2.4% to R$ 815.9 million; recurring EBITDA for the year was R$ 467.6 million, down 21.1%.

Outlook and guidance

• Management expects continued pressure on domestic demand due to macroeconomic factors and competition from imports, but remains focused on revenue quality, margin preservation, and operational discipline.

• Early 2026 shows signs of volume replenishment in retail channels as inventory levels normalize.

• Export performance may remain volatile due to external factors such as tariffs and geopolitical instability.