We should have run the quarterly results of this Brazilian company earlier, but here they are: Vulcabras Azaleia reported a big jump of 279.2 percent in its operating earnings before amortization (Ebitda) to 40.2 million reais (€9.3m-$10.4m) for the second quarter ended on June 30. In spite of a challenging economic environment in Brazil, the parent company of Azaleia, Dijean, Olympikus and couple of other minor brands continued its recovery through a restructuring program that began in July 2014.
The group's consolidated net revenues rose by 6.0 percent to R$316.7 million (€73.0m-$82.2m), and the gross margin improved by 1.8 percentage points to 27.5 percent, while operating expenses were reduced by 0.5 percent ahead of the termination at the end of this year of a distribution contract for Reebok.
For the first half of 2015, a period during which it launched 300 new styles, Vulcabras recorded Ebitda of R$80.3 million (€18.5m-$20.8m) on 2.9 percent higher net revenues of R$619.9 million (€142.9m-$160.8m), and its gross margin went up by 5.2 percentage points to a more reasonable level of 28.7 percent. The Ebitda margin of 13.0 percent for the period compared with 3.7 percent in the first half of 2014, but the company still suffered a net loss of R$29.2 (€6.7m-$7.6m), 66.5 percent below the level of the year-ago period, after interest charges of R$59.4 million (€13.7m-$15.4m).
The company invested heavily in the development of new products under the Olympikus brand and to support their sales through new marketing initiatives, especially online. Vulcabras says it has developed new running shoes for the markets of Jamaica and Japan.