Grendene (GRND3) Q2 2025 earnings summary

Executive summary

• Gross revenue rose 25.1% year-over-year in 2Q25 to R$756.2 million, with recurring net profit up 200.6% to R$185.5 million, despite a challenging macroeconomic environment and a slight decline in total volume sold.

• Domestic market volume grew 1.2% to 22.9 million pairs, while foreign market volume declined 3.2%; export revenue increased 88.0% with average price per pair up 94.2%.

• Net recurring profit surge was driven by a 340% increase in financial results and higher average prices per pair.

• Recurring EBIT decreased 27.7% to R$30.4 million, with margin falling to 6.1%.

• The company maintained operational resilience through premium product focus, margin preservation, and geographic diversification.

Financial highlights

• Gross sales revenue: R$756.2 million in 2Q25 (+25.1% YoY); 1H25: R$1.46 billion (+15.4% YoY).

• Net revenue: R$555.3 million in 2Q25 (+15.6% YoY); 1H25: R$1.12 billion (+9.8% YoY).

• Net financial revenue in 2Q25 surged 166.4% to R$84.7 million, driven by higher financial investments and FX gains.

• Gross margin was 42.0% in 2Q25, down 0.6 pp YoY, mainly due to increased labor costs and lower-than-expected volume.

• Recurring net margin rose 24.3 pp to 37.2% in 2Q25.

Outlook and guidance

• Management remains vigilant amid ongoing economic and political uncertainties, high inflation, and interest rates, with initiatives focused on portfolio adjustments, commercial actions, and expense rationalization.

• Monitoring potential impacts from a proposed 50% U.S. tariff on Brazilian products and intensifying global competition.