Grendene (GRND3) Q2 2025 earnings summary

Executive summary

• Net revenue reached R$555.3 million in 2Q25, up 15.6% year-over-year, with recurring net profit surging 200.6% to R$185.5 million, driven by export growth and higher average prices per pair.

• Gross sales revenue rose 25.1% in 2Q25 to R$756.2 million, led by an 88.0% increase in exports, despite a slight decline in total volume sold and a challenging macroeconomic environment.

• The company maintained operational resilience and profitability through a focus on premium products, margin preservation, and geographic diversification.

• Recurring EBIT fell 27.7% to R$30.4 million, with margin down 2.6 pp to 6.1%.

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

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).

• Recurring net profit: R$185.5 million in 2Q25 (+200.6% YoY); recurring net margin rose 24.3 pp to 37.2%.

• Gross margin: 42.0% in 2Q25, down 0.6 pp YoY; 44.4% in 1H25, up 0.7 pp YoY.

• Net cash position reached R$1.8 billion as of June 30, 2025 (+15.0% YoY).

Outlook and guidance

• Management remains vigilant amid ongoing economic and political uncertainties, high interest rates, and pressure on household consumption.

• Initiatives focus on portfolio adjustments, commercial actions, expense rationalization, and maintaining long-term sustainable growth.

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