After having reversed 3 years of negative balances, and closing 2021 with profits of $1,061 million, the traditional GRIMOLDI brand -manufacturer and marketer of footwear- managed to cancel in advance the payment of a significant debt that it had with a group of local banks. The information was published in early April by the portal specialized in economics and business iProfesional.com, based on a company statement.
It adds that, in its most difficult moments, the company had to reduce its assets, sell property and request the opening of a crisis preventive procedure with the Ministry of Labor.
As of the improvement in sales in 2021, the company decided to pre-cancel in advance the loan refinancing agreement with 11 banks. In the same way, it decided to redeem the Negotiable Obligations issued for $600 million that it launched in July 2017.
Since mid-2021, GRIMOLDI began to see a slight recovery, resulting in the sale of 1,850,000 pairs, which represented a growth of 80% compared to 2020, but still 14% below the volume sold in 2019.
Sales for 2021, adjusted for inflation, were $12,186 million, an increase of 100% compared to 2020, and 6% compared to 2019.
The consolidated gross profit margin improved in 2021 compared to 2020, which came to represent 59% of sales, compared to 38% the previous year.
According to the report, the profit was the result of an austere commercial policy and adaptation of its structure and processes, as it did in its industrial plant in Arroyo Seco, Santa Fe; in the rubber and polyurethane soles and insoles factory, and the distribution center, both in Pilar, Buenos Aires.
From now on, the company will adopt a cautious business policy, where it will develop segmented collections, maintain the essence of its stores and brands, foreseeing that consumers will be more selective in the search for products that give them confidence. "For the new stage, the foundations have been laid for a healthier and more profitable company", the document stressed.
GRIMOLDI has a history of 125 years in the Argentine market, its main activity being the manufacture and sale of footwear through its own stores, third-party stores, franchises and online.
Its main brands are: HUSH PUPPIES; THE NORTH FACE; KICKERS; ALDO; VAN'S; MERRELL; CATERPILLAR; STITCHING and GRIMS.
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