São Paulo – Grendene, one of the largest Brazilian footwear companies, increased by 6.6% its exports in H1 of this year over the same period of last year, according to information released this Friday (24th) by the company. Revenues with external sales stood at R$ 288 million (US$ 86.6 million) from January to June of this year, R$ 17.7 million (US$ 5.3 million) more than in the same months of last year. In Q2, from April to June, the growth was even higher, 17.6%, to R$ 121 million (US$ 36.3 million).
The dollar appreciation reflected in the results in reais, since there was a drop in the volume shipped. The company exported to other countries 21 million pairs from January to June 2015 against 24.9 million of pairs sold in the first six months of 2014, a decline of 15.5%. In Q2, the decline was less sharper, of 5.5%, with 8.6 million pairs sold agains 9.1 million of pairs from April to June of last year, according to the company’s report.
In an analysis released to the financial market, Grendene says that the global environment didn’t recover as much as expected in the last quarter. But the company emphasized the importance of the international market compared to a domestic falling market. “The exchange rate continues to be favorable and, in our understanding, with the outlook to favor even more the exports conditions in the second semester”, said the company in the report.
The external market accounted for 73.8% of the gross income of the footwear company in H1 of this year, below the 75.5% registered in the first six months of last year. The exports volume, however, increased its share in the company’s total sales, from 70.2% to 73.2% in the same comparison. The company registered a decline of 0.3% in gross income in H1, with R$ 1.1 billion (US$ 330.7 million). In Q2, there was a 5.4% decline, to R$ 462.1 million (US$ 138.9 million).
The company had an increase in the footwear average price in both exports and domestic market, but explains that this occurred due to the exchange rate and the mix of products traded, with items of greater added value, and not because of raised prices. Grendene manufactures famous brands such as Ipanema, Melissa and Grendha.
According to Grendene, in Q2, since its normal due to seasonality, purchases from the North Hemisphere declined and concentrated in the South Hemisphere, especially South America countries, which are facing economic downturn. Abroad, among the markets that the company sells its products are the Arab markets.
*Translated by Sérgio Kakitani
