São Paulo – Exports by Grendene, one of the large Brazilian shoe manufacturers, grew 17.6% in the year-to-date result for the nine first months of the year, compared with the same period of 2008. According to information disclosed in the company’s quarterly financial results, Grendene’s revenues from foreign trade totalled US$ 245.4 million, as against US$ 208 million from January to September last year.
In the third quarter, however, foreign sales decreased 21%. Sales went from US$ 67.9 million from July to September 2008 to US$ 53.6 million in the same period of this year. “The unfavourable exchange rate in a recessive environment has held back our appetite for expansion a little,” said the company, regarding the export performance in the quarter, in its financial results.
Volume-wise, in the first nine months of the year, Grendene exported 31.6 million pairs. Exports accounted for 20.1% of sales. The remainder went to the domestic market, which accounted for 79.9% of revenues, with 76.5 million pairs. The company exports to several Arab countries, among them Saudi Arabia, Algeria, Bahrain, Egypt, Emirates, Kuwait, Lebanon, Morocco, Oman, Palestine, Qatar and Syria.
In total, Grendene made 108 million pairs from January to September, and had gross revenues of US$ 1.21 billion. In the same period of 2008, the figure was US$ 1.07 billion. There was growth of 13.2%. Net revenues were US$ 1.03 billion, as against US$ 897 million. The company claims to be pleased with the year-to-date figures. “No large shoe industry company in Brazil comes close to our figures,” says the Grendene report.
The figures of the third quarter, however, were considered unsatisfactory. Gross revenues from July to September totalled US$ 475.5 million, growth of 3.9%, and net revenues totalled US$ 401.5 million, growth of 4.3%. “The demand remained strong, surprising us in the case of certain lines, and exceeding our capacity to manufacture and deliver at margins comparable to those of last year, factors that have come to compromise our result in the third quarter.”
The company was born in the city of Farroupilha, in the interior of the state Rio Grande do Sul, in 1971, and currently has 13 production units across Brazil. It exports to the five continents and produces brands such as Melissa, Grendha, Ipanema and Rider.
*Translated by Gabriel Pomerancblum
