Companies

Strong 2023 for Vulcabras

Mar 26, 2024 Brazil

The Brazilian sports footwear company reported record gross sales of 3.27 billion Brazilian reais (605.3 million euros), calling 2023 “the best year in its history”

In 2023, Vulcabras’ gross volume was 31.4 million pairs, a decrease of 0.9% as compared to 2022. However, its gross revenue increased by 11.5% year-on-year to a record 3.27 Brazilian reais (605.3 million euros). “With the combination of strong brands, a vertical business model 100% focused on sports and efficiency gains in operations, Vulcabras (VULC3) records in 2023 the best year in its history”, reads the statement from the company.

With the fourth quarter marking the 14^th consecutive quarter of growth (up by 7.1% year-over-year), “reinforcing the solid pace of sales expansion and achieving positive performance across all of its sports brands”, the company’s net revenue in 2023 reached 2.81 billion Brazilian reais (520.1 million euros), an increase of 11.1% on a comparable basis to 2022.

A highlight was the performance of the athletic footwear division, whose annual net revenue increased by 13.1% over the previous year, as a result “of the complementarity of the brand and channel mix, operation in new product categories, and portfolios aligned with the profile of each consumer”. While the apparel and accessories division also recorded a 6.1% increase over the previous year, net sales in the other footwear division declined by 3.7%.

The Brazilian footwear company was also keen to stress its operating performance. With a 4.7 percentage point improvement in gross margin to 41.7%, it reached “its highest historical level”. In addition, Vulcabras’ recurring EBITDA increased by 31.5% year-on-year to 640.5 million Brazilian reais (118.6 million euros) and its recurring EBITDA margin of 22.7% was 3.5 percentage points higher than in 2022.

As a consequence, the company’s 2023 recurring net profit amounted to 489.7 million Brazilian reais (90.6 million euros). This represents 32.0% growth over the previous year.

Founded in 1952, Vulcabras is the largest sporting goods brand manager in Brazil. Its portfolio includes Mizuno, Olympikus and Under Armour.

1 Brazilian Real = 0.19 EUR

Image Credits: rssustentavel.com.br

Brazil Footwear Results Shoes Vulcabras Year Results