Companies

Arezzo reports strong year 2023

Mar 21, 2024 Brazil

The Brazilian footwear and accessories group has reported “record” gross revenues in 2023. This leaves it in a strong position ahead of its merger with fashion group Soma

“The year of 2023 was a remarkable year for Arezzo&Co, were once again we demonstrated our ability to adapt. An year where we overcame external obstacles, together with important gains in our organic growth strategy. We posted 6.1 billion Brazilian reais in sales, up 16.4%, setting a new all-time record, despite the strong comparative baseline from 2022’s results. This was result of our ability to manage the brands portfolio, together with our team’s execution and delivery capabilities”, reads the statement from the company.

Full Year Results

Arezzo recorded a gross revenue of 6.98 billion Brazilian reais (1.28 billion euros) in 2023, an increase of 16.4% on a comparable basis to the previous year. The domestic market contributed 5.52 billion Brazilian reais (1.02 billion euros) to the total gross revenue, up by 18.0% year-over-year, while the foreign market contributed the remaining 564.5 million Brazilian reais (103.9 million euros), up by 2.7% year-over-year.

The company also reported that last fiscal year’s net revenue totalled 4.85 billion Brazilian reais (893.1 million euros), which represents a growth of 14.5%, as compared to the year 2022.

Arezzo achieved higher operating margins, with the recurring gross margin increasing from 53.9% in 2022 to 54.5% this year and the recurring EBITDA margin increasing from 15.5% to 16.5%. However, the company’s recurring net profit margin fell from 9.1% to 8.7% due to higher finance costs.

Merge

In early 2024, Arezzo announced “a historic move” for the company and “the Brazilian fashion industry” itself. It plans to merge with Soma to create a group with an annual turnover of 12 billion Brazilian reais, offering shoes, handbags, men’s, women’s and children’s fashion, including clothing and accessories, through 34 brands and more than 2 000 owned and franchised stores.

1 Brazilian real = 0.18 euros

Image Credits: moneyreport.com.br

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