Brazil Shoe Maker Grendene Boosts Revenues from Foreign Sales by 23%

Grendene ad piece Brazil's shoe manufacturer Grendene boosted by 12% its gross revenues in the third quarter compared with the same period of 2006. According to just-released company's information, Grendene posted gross revenues of 418.7 million Brazilian reais (US$ 241.2 million) during the period.

The domestic market accounted for 89% of gross revenues from July to September, a growth of 371.6 million reais (US$ 214.1 million), or 11.5%, over the same months of 2006. Exports answered to 11% of gross revenues, at 47.1 million reais (US$ 27.1 million), a 16.6% appreciation of the Brazilian currency, and a 32.3% appreciation of the dollar.

The adjusted net income stood at 81.6 million reais (US$ 47 million), surpassing by 6.5% the result recorded in the same period of last year. Grendene sold 37.8 million pairs between July and September, 10.5% more than in the same period of 2006. Of that total, 30.2 million pairs were destined to the domestic market, 2 million more, and 7.6 million pairs went to the foreign market, an increase of 25.8%.

In the first nine months of the year, gross revenues stood at 998.9 million reais (US$ 575.6 million), 9.9% more than recorded in the same period of 2006. Of that total, 84% came from the domestic market. The foreign market generated 158.4 million reais (US$ 91.2 million) for the company, an increase of 22.6%, in Brazilian currency, against the same period of 2006, and of 33.6% in dollars.

"The forecast for the last quarter of 2007 and beginning of 2008 is a growth even bigger than what is being posted. The economic conjuncture is favorable, plus we are having a good response with regard to exports," says Francisco Schmitt, Investor Relations Director at Grendene.

In the month of September, a new factory owned by Grendene went into operation, in the municipality of Teixeira de Freitas, in the northeastern Brazilian state of Bahia, with production capacity of 10 million pairs per year.

According to Grendene, the unit will allow for an increase in product competitiveness, as it is located near large consumer centers, such as the Southeast region of Brazil.

Anba

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