Azzas 2154 ended 2025 with a 30% growth in net profit and cash generation of R$ 1.2 billion. The largest portion of cash generation was achieved in the fourth quarter, with R$ 838.1 million, the highest volume since the company's creation.

The largest footwear and apparel fashion company in Latin America reported revenues of R$ 14.7 billion, a 4.3% increase over the R$ 14.1 billion reported in 2024. Net profit was R$ 770.7 million, compared to R$ 590.7 million the previous year.

EBITDA reached R$1.94 billion (up 5.8%), with a margin of 16.4%, a growth of 60 basis points year-on-year, mainly due to a reduction in the group's expenses. In the fourth quarter alone, the decrease was 5.3%.

With four business units, each with very different characteristics and significant growth, the company is now focused on expanding the structure of each one, as exemplified by the new management redesign and the business model adopted at Hering , for instance.

“With different business verticals and a very large group, Azzas will increasingly delve into the managerial suitability of these units, in order to better utilize each one of them,” says Alexandre Birman , CEO of Azzas 2154, in an interview with NeoFeed . “The consolidated result is the sum of these parts.”

One of the main drivers of Azzas' growth was the Farm Rio brand, which ended the year with revenue of R$ 3.3 billion, representing almost 25% of the group's total revenue.

The brand is part of the group's women's fashion division, which achieved R$ 5.6 billion in revenue and whose portfolio includes Animale, Maria Filó, Cris Barros, among others. This segment was the fastest growing in 2025, with an increase of 18.7% over the previous year.

A large part of this result is due to Farm Rio's international performance, which is now present in the United States, France, England, and the Middle East. By 2025, revenue from abroad grew by 21%, reaching R$ 1.4 billion, consolidating it as a global lifestyle brand for the company.

As a next step, the company's trend is to take another international leap and conquer new markets abroad for the fashion brand, which is strongly characterized by showcasing products that reflect Brazilian characteristics.

“She surprised us quite a bit in 2025. And now we are starting studies to take Farm to the Asian market. We hired a consultancy that will help us understand this market. Many international brands have a third of their revenue in Asia. Ours today is zero and we want to capture that,” says Birman.

According to the businessman, this puts the company on the radar for a future independence process, given its rapid growth, so that, in practice, it will be a separate company from the group. "Farm is starting to get very big, well above the group average."

According to Birman, the idea is to have Azzas as a holding company for fashion businesses, which could help in allocating capital to accelerate the expansion process of Farm Rio.

"It is now receiving greater attention from the board, with more in-depth considerations regarding the need for further investment to accelerate this growth even further," says the businessman.

The same reasoning should be applied to the conglomerate's men's fashion unit, which has the Reserva brand as its main driver. This segment reached revenues of R$1.94 billion in 2025, with a 7.4% increase over the period, the second-highest growth among the company's verticals.

"It was a year of consolidation in the professionalization of management. We had a plan to grow in full-price sales and reduce sales of entry-level products with lower margins. And we succeeded," he says.

According to Birman, the market share of the apparel segment reached 15%, which has led the company to consider separating the unit as a separate company, precisely because it is a more replicable business, in the businessman's view.

In the case of Hering, which is part of the company's basic unit, the management change, starting with the appointment of the new CEO, David Pynthon, in November 2025, replacing Thiago Hering , and the change in the brand's posture, is beginning to yield practical results.

In addition to new leadership, the brand also abandoned its premium image, returning to its origins as a basic consumer product. Overall, the segment grew 0.3%, reaching R$ 2.6 billion in 2025.

“These changes were well executed and we have already seen significant qualitative gains at Hering. The main one was the ability to change the business cycle, from selling first to putting the product into production. This helps to reduce inventory,” says Birman.

The good indicators

This decrease in inventory helped achieve the financial result and, especially, the cash generation, which should surprise the market. The fourth-quarter result is four times greater than the record for the same period of the previous year.

During the year, the company improved its working capital financial cycle by 13 days, in addition to reducing inventory volume by nine days. This contributed significantly to generating cash. Another point was the 30% reduction in capex volume, with the adoption of more selective criteria.

“Our sell-out revenue came in very good, which shows that brand desire remains high. Sell-in, which is for franchisees, decreased because we made the decision not to release collections early. This ensures our financial health and demonstrates our responsibility,” says Eric Alencar, CFO of Azzas.

The only decline recorded in the balance sheet was in the shoes & bags line, which includes brands such as Arezzo, Schutz, Alexandre Birman, Vans, among others. This unit achieved revenue of R$ 4.5 billion, a decrease of 1.2%.

In this case, the drop is related to a global reduction in the consumption of Vans brand sneakers. Brazil ended up feeling this same trend. Considering only the women's shoe segment, the scenario is one of growth.

“These are different market realities. And Arezzo is growing. Aside from Vans, the core of our business, which is the other women's shoe brands, the result is very positive and interesting,” explains Birman.

For the businessman, the turbulence caused in the middle of last year by a possible disagreement with Roberto Jatahy, another partner at Azzas, is a closed chapter and something that has been overcome in the company.

Over the past 12 months, Azzas Group's shares on the B3 stock exchange have appreciated by 5.7%. The company is valued at R$ 5.8 billion.