Grendene, the leading Brazilian footwear group, had another good quarter, with gross revenues rising by 5.2 percent to 391.0 million reals (€175.1m-$224.4m). Though sales at home increased by just 2.1 percent to R$318.5 million (€142.6m-$182.8m), exports jumped by 21.5 percent to B$72.5 million (€32.5m-$41.6m). The net income, however, fell by just over a third to R$38.0 million (€17.0m-$21.8m), and the gross margin lost 7.8 percentage points, settling at 30.0 percent. The Ebit margin and Ebitda margin sank as well, by 6.0 percentage points to 2.6 percent and by 5.9 percentage points to 4.9 percent, respectively.

The increase in revenues came mostly from higher average prices, which rose overall by 7.8 percent to R$11.94 (€5.35-$6.85). In Brazil they climbed by 14.9 percent, but abroad they fell by 2.8 percent to R$7.13 (€3.20-$4.10), hurt by currency rates. Volumes were down overall, falling by 2.4 percent, as a 25.0 percent increase in exports to 10.2 million pairs couldn't make up for the drop of 11.2 percent in domestic sales to 22.6 million. The drop at home was expected because of the higher prices.

Grendene expects to be able to turn around the figures in the second half of the year. One issue has been a mandatory increase in wages in Brazil, but the management feels that this will even out and lead to higher demand as potential customers have more income.