Grendene gross revenue 10% higher in Q4 2007

26 Mar '08

3 min read

Grendene's net profit in 4Q07 was 2.2% higher than in 4Q06, bringing 2007 net profit to R$258.6 million, Grendene's highest-ever quarterly profit – although this is a little below our expectation of a net margin in line with 2006: 2007 net margin was 21.5%, 170 bps below 2006 net margin of 23.2%. Our overall growth trend was maintained: gross revenue up 9.8% year-on-year, volumes up 10.4%.

The strategies of segmentation, constant innovation and aggressive marketing have shown themselves to be efficient in both the Brazilian and international markets, contributing to expansion of sales.

In the children's market segment, we can highlight Spiderman and Hello Kitty sneakers, and Hot Wheels Thunder, launched in first and second half 2007 with strong appeal to children and synchronized with children's leisure or educational events such as cinema or TV screenings of the characters involved; and the return to school – launches, which always produce good results. The same was true of new licensings including Crazy Frog, Shrek, and Power Rangers.

In the feminine segment, Grendene has come up with a team that brings together all that is strongest in visibility and prestige: Ivete Sangalo with "Grendha is Rhythm"; Juliana Paes with "Grendha Glass"; Fernanda Machado with "Grendha+Fernanda Machado"; and Claudia Leite with "Babado Novo Balanço" sandals.

An impressive operation continued in the mass distribution: Miss Brazil Natália Guimarães, for Ipanema; Camila Pitanga for Ipanema Tropical; and the always stunning Gisele Bündchen for Ipanema GB.

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