The parent company of Azaleia, Dijean and Olympikus, which is about stop marketing Reebok in Brazil and other Latin American countries, reported a positive operating profit for the second quarter in a row. Vulcabras reached Ebitda of R$ 17.6 million (€5.1m-$5.8m) in the three months ended March 31, compared with a loss of R$ 9.3 million in the same period a year ago. The gross margin rose by 880 basis points to 30.1 percent and net losses fell by 68.3 percent to R$ 13.6 million (€4.0m-$4.5m) vs. R$ 42.9 million.

The consolidated revenues of the group were down by 1.4 percent to R$ 326.4 (€95.3m-$108.2m) in the quarter, as a drop of 8.2 percent in the Brazilian market offset growth of 19.9 percent in other markets.

Operating costs were reduced by 3.1 percent, yet the company mentioned strong investments in Olympikus and Azaleia. Vulcabras launched 11 new models of running shoes under its sports brand during the period, supporting it with a TV spot. It also presented 48 new styles styles of Azaleia shoes at the Couromoda fair in January.

Vulcabras, which is controlled by a different part of the family that controls Grendene, reduced its net debt by R$7.5 million (€2.2m-$2.5m) to RH 669.9 million (€199.3m-$222.2m) in the course of the quarter.

As previously reported, the Adidas Group and Vulcabras, which is changing its name to Vulcabrasjazaleia, has announced the termination of their joint venture contract for Reebok at the end of 2015, after 23 years of collaboration.