Reported Earnings • May 11
First quarter 2026 earnings released First quarter 2026 results: Revenue: R$533.8m (down 5.3% from 1Q 2025). Net income: R$102.1m (down 9.9% from 1Q 2025). Profit margin: 19% (down from 20% in 1Q 2025). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has fallen by 15% per year, which means it is significantly lagging earnings. Buy Or Sell Opportunity • May 10
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 15% to R$4.19. The fair value is estimated to be R$5.39, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.8% over the last 3 years. Earnings per share has grown by 13%. Announcement • Mar 23
Grendene S.A., Annual General Meeting, Apr 23, 2026 Grendene S.A., Annual General Meeting, Apr 23, 2026. Location: to be held exclusively on microsoft teams, Brazil Reported Earnings • Mar 09
Full year 2025 earnings released Full year 2025 results: Revenue: R$2.58b (down 1.7% from FY 2024). Net income: R$644.8m (down 12% from FY 2024). Profit margin: 25% (down from 28% in FY 2024). The decrease in margin was primarily driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has fallen by 16% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Dec 30
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to R$4.52, the stock trades at a trailing P/E ratio of 5.6x. Average trailing P/E is 7x in the Luxury industry in Brazil. Total returns to shareholders of 37% over the past three years. New Risk • Dec 29
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Brazilian stocks, typically moving 7.8% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by cash flows (137% cash payout ratio). Share price has been volatile over the past 3 months (7.8% average weekly change). Upcoming Dividend • Dec 25
Upcoming dividend of R$1.09 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 09 September 2026. Payout ratio is a comfortable 63% but the company is paying out more than the cash it is generating. Trailing yield: 9.3%. Lower than top quartile of Brazilian dividend payers (11%). Lower than average of industry peers (12%). Declared Dividend • Nov 12
Third quarter dividend of R$0.071 announced Shareholders will receive a dividend of R$0.071. Ex-date: 24th November 2025 Payment date: 10th December 2025 Dividend yield will be 10%, which is higher than the industry average of 5.4%. Sustainability & Growth Dividend is covered by earnings (32% earnings payout ratio) but not covered by cash flows (137% cash payout ratio). The dividend has increased by an average of 7.5% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 2.8% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 09
Third quarter 2025 earnings released: EPS: R$0.15 (vs R$0.25 in 3Q 2024) Third quarter 2025 results: EPS: R$0.15 (down from R$0.25 in 3Q 2024). Revenue: R$760.1m (up 1.4% from 3Q 2024). Net income: R$138.5m (down 38% from 3Q 2024). Profit margin: 18% (down from 30% in 3Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. Declared Dividend • Aug 11
Second quarter dividend of R$0.11 announced Shareholders will receive a dividend of R$0.11. Ex-date: 22nd August 2025 Payment date: 10th December 2025 Dividend yield will be 11%, which is higher than the industry average of 5.4%. Sustainability & Growth Dividend is covered by earnings (45% earnings payout ratio) but not covered by cash flows (118% cash payout ratio). The dividend has increased by an average of 7.5% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 3.4% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Aug 10
Second quarter 2025 earnings released: EPS: R$0.16 (vs R$0.046 in 2Q 2024) Second quarter 2025 results: EPS: R$0.16 (up from R$0.046 in 2Q 2024). Revenue: R$555.3m (up 16% from 2Q 2024). Net income: R$143.6m (up 245% from 2Q 2024). Profit margin: 26% (up from 8.7% in 2Q 2024). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. Reported Earnings • May 12
First quarter 2025 earnings released First quarter 2025 results: Revenue: R$563.8m (up 4.5% from 1Q 2024). Net income: R$113.4m (down 19% from 1Q 2024). Profit margin: 20% (down from 26% in 1Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has fallen by 18% per year, which means it is significantly lagging earnings. Upcoming Dividend • Apr 16
Upcoming dividend of R$0.26 per share Eligible shareholders must have bought the stock before 23 April 2025. Payment date: 07 May 2025. Payout ratio is a comfortable 62% and the cash payout ratio is 88%. Trailing yield: 9.1%. Lower than top quartile of Brazilian dividend payers (10%). Higher than average of industry peers (6.1%). Announcement • Mar 18
Grendene S.A., Annual General Meeting, Apr 17, 2025 Grendene S.A., Annual General Meeting, Apr 17, 2025. Location: to be held exclusively on, Brazil Declared Dividend • Mar 06
Fourth quarter dividend of R$0.26 announced Shareholders will receive a dividend of R$0.26. Ex-date: 23rd April 2025 Payment date: 7th May 2025 Dividend yield will be 8.5%, which is higher than the industry average of 5.4%. Sustainability & Growth Dividend is covered by both earnings (62% earnings payout ratio) and cash flows (88% cash payout ratio). The dividend has increased by an average of 7.5% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to decline by 31% to shift the payout ratio to a potentially unsustainable range, which is more than the 2.1% EPS decline seen over the last 5 years. Reported Earnings • Mar 02
Full year 2024 earnings released: EPS: R$0.81 (vs R$0.62 in FY 2023) Full year 2024 results: EPS: R$0.81 (up from R$0.62 in FY 2023). Revenue: R$2.63b (up 8.0% from FY 2023). Net income: R$735.2m (up 32% from FY 2023). Profit margin: 28% (up from 23% in FY 2023). Revenue is forecast to grow 5.0% p.a. on average during the next 2 years, compared to a 9.4% growth forecast for the Luxury industry in Brazil. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. Declared Dividend • Nov 13
Third quarter dividend of R$0.15 announced Shareholders will receive a dividend of R$0.15. Ex-date: 22nd November 2024 Payment date: 5th December 2024 Dividend yield will be 7.6%, which is higher than the industry average of 5.4%. Sustainability & Growth Dividend is covered by both earnings (51% earnings payout ratio) and cash flows (41% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. Earnings per share has grown by 3.8% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 10
Third quarter 2024 earnings released Third quarter 2024 results: Revenue: R$749.5m (up 8.8% from 3Q 2023). Net income: R$223.5m (up 67% from 3Q 2023). Profit margin: 30% (up from 20% in 3Q 2023). The increase in margin was primarily driven by higher revenue. Revenue is forecast to grow 6.3% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Luxury industry in Brazil. Declared Dividend • Aug 14
Second quarter dividend of R$0.015 announced Shareholders will receive a dividend of R$0.015. Ex-date: 22nd August 2024 Payment date: 4th September 2024 Dividend yield will be 5.1%, which is lower than the industry average of 5.4%. Sustainability & Growth Dividend is covered by both earnings (51% earnings payout ratio) and cash flows (39% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. Earnings per share has grown by 3.0% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Aug 11
Second quarter 2024 earnings released: EPS: R$0.047 (vs R$0.064 in 2Q 2023) Second quarter 2024 results: EPS: R$0.047 (down from R$0.064 in 2Q 2023). Revenue: R$480.3m (up 3.6% from 2Q 2023). Net income: R$41.6m (down 27% from 2Q 2023). Profit margin: 8.7% (down from 12% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 6.5% p.a. on average during the next 3 years, compared to a 7.2% growth forecast for the Luxury industry in Brazil. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has fallen by 20% per year, which means it is performing significantly worse than earnings. New Risk • Jul 26
New major risk - Revenue and earnings growth Earnings have declined by 1.5% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 1.5% per year over the past 5 years. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Declared Dividend • May 17
Dividend of R$0.084 announced Shareholders will receive a dividend of R$0.084. Ex-date: 22nd May 2024 Payment date: 5th June 2024 Dividend yield will be 5.0%, which is lower than the industry average of 5.4%. Sustainability & Growth Dividend is covered by both earnings (51% earnings payout ratio) and cash flows (42% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to remain steady over the next year, which should provide adequate earnings cover for the dividend. Reported Earnings • May 10
First quarter 2024 earnings released First quarter 2024 results: Revenue: R$539.4m (up 3.7% from 1Q 2023). Net income: R$139.7m (up 14% from 1Q 2023). Profit margin: 26% (up from 24% in 1Q 2023). Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Luxury industry in Brazil. Upcoming Dividend • Apr 26
Upcoming dividend of R$0.16 per share Eligible shareholders must have bought the stock before 03 May 2024. Payment date: 15 May 2024. Payout ratio is a comfortable 51% but the company is paying out more than the cash it is generating. Trailing yield: 5.2%. Lower than top quartile of Brazilian dividend payers (8.9%). Higher than average of industry peers (3.8%). Declared Dividend • Mar 07
Fourth quarter dividend of R$0.16 announced Shareholders will receive a dividend of R$0.16. Ex-date: 3rd May 2024 Payment date: 15th May 2024 Dividend yield will be 4.9%, which is lower than the industry average of 5.4%. Sustainability & Growth Dividend is covered by both earnings (51% earnings payout ratio) and cash flows (46% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 20% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Mar 03
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: R$0.62 (down from R$0.63 in FY 2022). Revenue: R$2.43b (down 3.1% from FY 2022). Net income: R$557.7m (down 1.8% from FY 2022). Profit margin: 23% (in line with FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 4.8%. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Luxury industry in Brazil. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Announcement • Nov 11
Grendene S.A. to Report Q3, 2023 Results on May 09, 2024 Grendene S.A. announced that they will report Q3, 2023 results at 9:00 PM, Coordinated Universal Time on May 09, 2024 New Risk • Nov 11
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 28% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 255% Cash payout ratio: 203% Earnings have declined by 1.0% per year over the past 5 years. Minor Risk Large one-off items impacting financial results. Reported Earnings • Aug 12
Second quarter 2023 earnings released: EPS: R$0.064 (vs R$0.073 in 2Q 2022) Second quarter 2023 results: EPS: R$0.064 (down from R$0.073 in 2Q 2022). Revenue: R$463.6m (down 10% from 2Q 2022). Net income: R$57.2m (down 13% from 2Q 2022). Profit margin: 12% (in line with 2Q 2022). Revenue is forecast to grow 8.0% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Luxury industry in Brazil. Over the last 3 years on average, earnings per share has fallen by 1% per year whereas the company’s share price has fallen by 2% per year. Reported Earnings • May 12
First quarter 2023 earnings released First quarter 2023 results: Revenue: R$520.1m (flat on 1Q 2022). Net income: R$123.1m (down 1.9% from 1Q 2022). Profit margin: 24% (in line with 1Q 2022). Revenue is forecast to grow 6.8% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Luxury industry in Brazil. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • May 03
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to R$6.65, the stock trades at a trailing P/E ratio of 10.6x. Average forward P/E is 12x in the Luxury industry in Brazil. Total returns to shareholders of 33% over the past three years. Upcoming Dividend • Apr 26
Upcoming dividend of R$1.36 per share at 18% yield Eligible shareholders must have bought the stock before 03 May 2023. Payment date: 17 May 2023. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 18%. Within top quartile of Brazilian dividend payers (8.4%). Higher than average of industry peers (5.7%). Reported Earnings • Mar 04
Full year 2022 earnings released: EPS: R$0.63 (vs R$0.67 in FY 2021) Full year 2022 results: EPS: R$0.63 (down from R$0.67 in FY 2021). Revenue: R$2.51b (up 7.3% from FY 2021). Net income: R$568.0m (down 5.5% from FY 2021). Profit margin: 23% (down from 26% in FY 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 6.3% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Luxury industry in Brazil. Over the last 3 years on average, earnings per share has fallen by 8% per year whereas the company’s share price has fallen by 9% per year. Price Target Changed • Nov 16
Price target decreased to R$9.50 Down from R$11.00, the current price target is an average from 2 analysts. New target price is 42% above last closing price of R$6.71. Stock is down 23% over the past year. The company posted earnings per share of R$0.67 last year. Board Change • Nov 16
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 6 experienced directors. No highly experienced directors. 2 independent directors (5 non-independent directors). Independent Director Bruno Licarião Rocha was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Oct 28
Third quarter 2022 earnings released Third quarter 2022 results: Revenue: R$713.9m (up 6.3% from 3Q 2021). Net income: R$174.2m (down 16% from 3Q 2021). Profit margin: 24% (down from 31% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 8.8% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Luxury industry in Brazil. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has fallen by 11% per year, which means it is performing significantly worse than earnings. Reported Earnings • Aug 05
Second quarter 2022 earnings released Second quarter 2022 results: Revenue: R$517.2m (up 45% from 2Q 2021). Net income: R$65.7m (up 98% from 2Q 2021). Profit margin: 13% (up from 9.3% in 2Q 2021). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 16%, compared to a 21% growth forecast for the industry in Brazil. Price Target Changed • Jul 20
Price target decreased to R$9.50 Down from R$10.67, the current price target is provided by 1 analyst. New target price is 36% above last closing price of R$7.00. Stock is down 36% over the past year. The company posted earnings per share of R$0.67 last year. Upcoming Dividend • May 04
Upcoming dividend of R$0.093 per share Eligible shareholders must have bought the stock before 10 May 2022. Payment date: 25 May 2022. Payout ratio is a comfortable 66% but the company is paying out more than the cash it is generating. Trailing yield: 4.5%. Lower than top quartile of Brazilian dividend payers (6.6%). Higher than average of industry peers (2.4%). Reported Earnings • May 01
First quarter 2022 earnings released: EPS: R$0.14 (vs R$0.14 in 1Q 2021) First quarter 2022 results: EPS: R$0.14 (down from R$0.14 in 1Q 2021). Revenue: R$517.9m (down 1.0% from 1Q 2021). Net income: R$125.5m (down 2.9% from 1Q 2021). Profit margin: 24% (in line with 1Q 2021). Over the next year, revenue is forecast to grow 17%, compared to a 27% growth forecast for the industry in Brazil. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has increased by 9% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Apr 27
Upcoming dividend of R$0.081 per share Eligible shareholders must have bought the stock before 03 May 2022. Payment date: 18 May 2022. Payout ratio is a comfortable 66% but the company is paying out more than the cash it is generating. Trailing yield: 4.8%. Lower than top quartile of Brazilian dividend payers (6.3%). Higher than average of industry peers (2.2%). Board Change • Apr 27
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 9 experienced directors. No highly experienced directors. 2 independent directors (5 non-independent directors). Independent Director Bruno Licarião Rocha was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Valuation Update With 7 Day Price Move • Mar 19
Investor sentiment improved over the past week After last week's 22% share price gain to R$9.75, the stock trades at a trailing P/E ratio of 14.6x. Average forward P/E is 17x in the Luxury industry in Brazil. Total returns to shareholders of 38% over the past three years. Reported Earnings • Feb 26
Full year 2021 earnings: Revenues in line with analyst expectations Full year 2021 results: Revenue: R$2.34b (up 24% from FY 2020). Net income: R$601.0m (up 48% from FY 2020). Profit margin: 26% (up from 21% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Over the next year, revenue is forecast to grow 8.7%, compared to a 32% growth forecast for the industry in Brazil. Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has fallen by 1% per year. Reported Earnings • Nov 03
Third quarter 2021 earnings released The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: R$671.4m (up 6.4% from 3Q 2020). Net income: R$208.1m (up 88% from 3Q 2020). Profit margin: 31% (up from 18% in 3Q 2020). The increase in margin was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Reported Earnings • Aug 02
Second quarter 2021 earnings released The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: R$358.0m (up R$301.3m from 2Q 2020). Net income: R$33.2m (up R$77.5m from 2Q 2020). Profit margin: 9.3% (up from net loss in 2Q 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has increased by 11% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • May 07
Investor sentiment improved over the past week After last week's 18% share price gain to R$9.20, the stock trades at a trailing P/E ratio of 20.5x. Average trailing P/E is 20x in the Luxury industry in Brazil. Total returns to shareholders of 26% over the past three years. Upcoming Dividend • Apr 16
Upcoming dividend of R$0.49 per share Eligible shareholders must have bought the stock before 23 April 2021. Payment date: 12 May 2021. Trailing yield: 6.1%. Within top quartile of Brazilian dividend payers (5.0%). Higher than average of industry peers (2.0%). Reported Earnings • Mar 08
Full year 2020 earnings released The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: R$1.90b (down 8.4% from FY 2019). Net income: R$405.2m (down 18% from FY 2019). Profit margin: 21% (down from 24% in FY 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has only fallen by 6% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Feb 25
New 90-day low: R$7.26 The company is down 14% from its price of R$8.41 on 27 November 2020. The Brazilian market is up 5.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Luxury industry, which is down 8.0% over the same period. Is New 90 Day High Low • Feb 09
New 90-day low: R$7.54 The company is down 7.0% from its price of R$8.11 on 10 November 2020. The Brazilian market is up 14% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Luxury industry, which is up 7.0% over the same period.