Companies

Vulcabras achieves the highest EBITDA in its history

Nov 7, 2024 Brazil

The Brazilian footwear company has reported a strong performance in the third quarter. It has achieved its highest EBITDA ever, thus validating the consistency of its business strategy

“Growing for 17 consecutive quarters, Vulcabras reports the highest EBITDA in its background – 196.7 million Brazilian reais (32.2 million euros) – reinforcing the consistency of its business strategy focused on sports, with a unique, vertically integrated business model. Investments in innovation and technology, both in production and in the R&D centre, enable the Company to provide a portfolio of increased value-added products, in addition to operating more efficiently and profitably. This contributes to an increase in average pricing and expansion of gross margin”, the company said in a statement.

Third Quarter Results

In the third quarter of the year, Vulcabras manufactured 8.3 million pairs of shoes, an increase of 6.6%, on a comparable basis to the same period last year. Despite the challenges in the retail sector, which continues to rely heavily on promotions and discounts, the company achieved its 17^th consecutive quarter of net sales growth of 7.3% year-on-year to 784.6 million Brazilian reais (128.5 million euros).

It’s worth mentioning that the performance of the international market was significantly affected by the economic instability in various countries, particularly in Vulcabras’ main export markets, Argentina and Peru. As a result, the company’s net sales in foreign markets in the third quarter decreased by 9.7% year-on-year to 35.5 million Brazilian reais (5.8 million euros), while they increased by 8.2% year-on-year to 749.1 million Brazilian reais (122.7 million euros).

The Brazilian company stressed that the footwear segment continues to grow, enabling it to consolidate its “leadership position” in the national market. Particularly, in the third quarter of the current year, net revenue from the athletic footwear segment grew by 6.4% to 673.0 million Brazilian reais (110.2 million euros), as compared to the same period of the previous year, representing 85.8% of the total revenue.

In the three months to the end of September, Vulcabras’ gross margin improved by 0.2 percentage points from the same period last year to 43.1%. According to the company’s statement, this was “the best gross margin in its history, reflecting the effectiveness of its operational strategies and optimized cost management”.

Vulcabras’ recurring EBITDA was 185.5 million Brazilian reais (30.4 million euros) in the quarter, a growth of 4.7%, as compared to 177.1 million in the third quarter of 2023, with a recurring EBITDA margin of 23.6%. At the same time, the recurring net income reached 146.3 million Brazilian reais (24.0 million euros), a growth of 14.7% year-on-year, with a recurring net margin of 18.6%.

“We remain very optimistic for the year's closing. The upcoming months are crucial for retail, with important dates like Black Friday and Christmas, which always positively impact consumer behaviour. We will continue focusing on our growth avenues and our diversified portfolio mix, continually improving our efficiency and the consistency of our results”, concluded Vulcabras.

1 BRL = 0.16 EUR

Image Credits: exclusivo.com.br

Brazil Companies Footwear Quarter Results Results Vulcabras