Grendene (GRND3) Q3 2025 earnings summary

Executive summary

• Gross revenue in Q3 2025 rose 10.6% year-over-year to R$1.02 billion, driven by strong export growth and GGB consolidation, despite a 10.2% drop in volume and challenging domestic conditions with inflation, high interest rates, and increased competition.

• Recurring EBIT and net profit declined by 25.6% and 22.9% year-over-year, respectively, reflecting margin pressure and higher costs.

• Melissa brand gross revenue rose 16.7% despite a 2.1% volume decrease, driven by premium product sales and a 19.2% increase in revenue per pair.

• E-commerce GMV grew 24.5%, with online penetration rising to 12.8% of domestic sales.

• Weather conditions in southern Brazil and intensified import competition further pressured domestic sales.

Financial highlights

• Gross profit for Q3 2025 was R$353.5 million, down 1.5% year-over-year; gross margin fell 1.4 p.p. to 46.5%.

• Recurring EBIT for Q3 2025 was R$117.9 million, with a margin of 11.5%.

• Recurring net profit for Q3 2025 was R$184.5 million, with a margin of 18.0%.

• Export revenue surged 86.1% to R$253.1 million, with volume up 17.1%.

• Net revenue per pair increased 13.0% to R$20.93.

Outlook and guidance

• Management is considering advancing dividend distributions in 2025 due to tax changes and will focus on portfolio adjustments, commercial initiatives, and expense control.

• Export markets, especially China, are expected to remain competitive with high return rates, while logistics have normalized.

• Emphasis remains on innovation, brand positioning, and operational excellence.