Guararapes Confeccoes SA: Company Profile and SWOT Analysis by ICDResearch

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									Guararapes Confeccoes SA

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Guararapes Confeccoes SA                                                        Financial Snapshot

                                                                                Operating Performance
Fast Facts
                                      Rodovia Rn 160, Km 3, Bloco A, Natal,     The company reported revenues of US$1,473.44
Headquarters Address
                                      59115-900,Brazil                          million during 2010, with a CAGR of 17.78% during
                                                                                2006–2010. Its revenue grew at an annual rate of
Telephone                             + 55 84 32041100
                                                                                35.60% over the previous fiscal year. In 2010, the
                                                                                company recorded an operating margin of 17.45%, as
Fax                                   + 55 84 32272337                          against 11.48% in 2009.

Website                               www.jeanspool.com.br
                                                                                Revenue and Margins
                                      GUAR3, Sao Paulo Stock
Ticker Symbol, Stock Exchange         ExchangeGUAR4, Sao Paulo Stock
                                      Exchange

Number of Employees                   34,056

Fiscal Year End                       December

Revenue (in US$ million)              1,473.44

Revenue (in BRL million)              2,607.98




                                                                                Return on Equity
SWOT Analysis
                                                                                The company recorded a return on equity (ROE) of
Strengths                             Weaknesses                                17.33% for 2010, as compared to its peers, Marisa
                                                                                S.A. (Ticker: MARI3), Sao Paulo Alpargatas S.A.
Improving operational performance     Geographic concentration                  (Ticker: ALPA4) and Lojas Hering S.A. (Ticker:
                                                                                LHER4), which recorded ROEs of 25.35%, 23.38%
                                                                                and 6.41% respectively. The company reported a net
Strengthening liquidity position      Weakening solvency position
                                                                                profit margin of 17.45% in 2010.

Vertically integrated operations
                                                                                Return on Equity
Opportunities                         Threats
Expansion into other Latin American
                                      Increase in manpower costs
countries

Stores expansion                      Rise in cotton prices

                                      Shortage of skilled personnel in Brazil




                                                                                Liquidity Position

                                                                                The company reported a current ratio of 2.35 in 2010,
                                                                                as compared to its peers, Marisa S.A., Sao Paulo
                                                                                Alpargatas S.A. and Lojas Hering S.A., which
                                                                                recorded current ratios of 1.49, 2.37 and 1.40
                                                                                respectively. As of December 2010, the company
                                                                                recorded cash and short-term investments of worth
                                                                                US$183.99 million, against zero current debt. The
                                                                                company reported a debt to equity ratio of 0.20 in
                                                                                2010 as compared to its peers, Marisa S.A., Sao
                                                                                Paulo Alpargatas S.A. and Lojas Hering S.A., which
                                                                                recorded debt to equity ratios of 0.70, 0.23 and 0.04
                                                                                respectively.




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Guararapes Confeccoes SA - SWOT Profile                                                                                Page 1
Guararapes Confeccoes SA

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ................................................................................................................................................5
    1.2       Business Description ..............................................................................................................................................5
    1.3       Major Products and Services .................................................................................................................................6
2     Analysis of Key Performance Indicators ............................................................................................... 7
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
    2.2       Key Financial Performance Indicators .................................................................................................................10
      2.2.1       Revenue and Operating Profit .........................................................................................................................10
      2.2.2       Asset, Liabilities and Capex .............................................................................................................................11
      2.2.3       Net Debt vs. Gearing Ratio ..............................................................................................................................12
      2.2.4       Operational Efficiency ......................................................................................................................................13
      2.2.5       Solvency ..........................................................................................................................................................14
      2.2.6       Valuation ..........................................................................................................................................................15
    2.3       Competitive Benchmarking ..................................................................................................................................16
      2.3.1       Market Capitalization .......................................................................................................................................1
								
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