Fashion retailer Grupo Soma, which owns brands such as Animale, Farm and Hering, had an 18.9% rise in fourth-quarter net income compared to the same period in the previous year, to R$47.4 million, the company announced in last Thursday night (17).
The result does not include the numbers of Cia Hering, whose acquisition by Soma was approved at a shareholders’ meeting in September.
Operating income measured by earnings before taxes, interest, depreciation and amortization (Ebitda) was R$89 million in the quarter, up 31.1% year-on-year.
Net revenue increased to R$658.1 million, an expansion of 38.6% compared to the same period in 2020.
In the retail segment, the company recorded a 23.2% expansion in same-store sales compared to a year earlier.
Grupo Soma also reported that sales grew by 58.8% in the first quarter of this year compared to the previous year. The data excludes Hering’s performance.
Including Hering’s numbers, Soma had a profit of R$ 44.8 million in the fourth quarter of last year, up 12.3% over 2020’s performance. %.
The company said that Hering had net revenue of R$559.2 million in the fourth quarter, up 31.6% from the same period in 2020.
“Hering’s 2021 was highly compromised and hampered not only by the closing of physical retail in March and April, especially in São Paulo, where it has a high concentration of stores, but mainly by a disorganization of its production chain, which was completely out of sync. and full of ruptures”, affirmed Soma in the balance sheet.
The company stated that the strategy after the incorporation of Hering was to prioritize the recovery of the levels of delivery of goods “through the outsourcing of finished products in order to protect the network of franchisees and multi-brands, as well as generate a nominal increase in the contribution margin”. .
According to Soma, the strategy ended up putting pressure on margins, “however, it is highly positive when we think about the medium and long term of the relationship with partners”.
Source: CNN Brasil
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