Grendene profits R$ 139.7 million in the 1st quarter, an increase of 13.5%, and announces payment of dividend

Grendene (GRND3) presented net profit of R$139.7 million in the first quarter of 2024 (1Q24), growth of 13.5% when compared to 1Q23. Considering only recurring items, profit was R$147.7 million, a drop of 5.3%, according to the balance sheet released on Thursday night (9).

Operating profit was R$91.7 million in the first quarter of 2024. The line rose 137% compared to the same period in 2023. The company’s gross profit, in turn, showed an increase of 10.2% in the annual comparison , at R$240 million in the first quarter of 2024.

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Earnings before interest, taxes, depreciation and amortization (Ebitda) were R$ 113 million, an increase of 79.4% compared to the same period in 2023. In the recurring modality, Ebitda reached R $98.4 million, an increase of 32% compared to 1Q23.

“Our EBIT grew 137%, we had growth in net profit, net result, the last line grew 13.5%, in other words, it was a quarter of revenue growth, growth in operating results and net results and also growth in margins. So it was a very positive quarter, despite the still challenging environment”, highlights Alceu Albuquerque, the company’s CFO in an exclusive interview with InfoMoney.
The good numbers were driven by the domestic market, according to the executive. The positive performance, however, still coexists with a more challenging scenario at the end, with sell out still recovering.

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“We started to see a recovery in April, we already had growth and now May is still very early in the month, but it is a challenging scenario. But we think there are signs of improvement in the economy that could benefit consumption. So interest rates started to fall, inflation is already falling, employment levels are improving. The conditions are ripe for an improvement in the scenario”, he considers.

The financial result decreased 36.1% to R$65.1 million, the effect of the lower balance
average applied in the period, as a result of the extraordinary distribution of dividends in May
2023, as well as a lower average CDI for the period. The company has no leverage and currently has around R$1.6 billion in cash.

Fewer volumes abroad

Gross revenue per pair grew 7.1%, at R$19.08. Despite this, export volumes, which have been a detractor on Grendene’s balance sheets for some time, fell by 23%. “The footwear sector as a whole suffered, if we take the footwear sector, the footwear sector as a whole dropped 28% in sales in this first quarter, so Grandene, our volume fell 23%, and the sector as as a whole fell 28%”, comments Albuquerque.

The executive explains that the international market is still challenging, especially considering complicated economic moments in Latin American countries and higher inflation in the United States and Europe.

“This has impacted consumption habits”, he ponders. “Chinese products began to enter the markets more strongly after the pandemic and have been entering more strongly, so it is a difficult scenario, but we still see room for growth throughout the year, more concentrated in the second half of the year”, he considers.

Dividends

Along with the results, the payment of dividends was announced. The distribution will be carried out in advance and relates to the period ending March 31, 2024. The dividends will be in the total amount of R$75.7 million and are equivalent to R$0.084006016, per share, paid from 05 June 2024.
Shareholders holding common shares (GRND3) registered in the company’s records on May 21, 2024 (cut-off date) will be entitled to receive the dividends. In this way, GRND3 shares will begin to be traded ex-dividend from May 22, 2024, according to the statement.