CAMB3

Cambuci S.A., traded on B3 under ticker CAMB3, is a traditional Brazilian company in the sports goods sector, whose origins date back to 1945 with the founding of Malharia Cambuci S/A in the Cambuci neighborhood of São Paulo. Initially focused on men’s and women’s apparel, the company underwent an important strategic shift in the late 1960s, when the second generation of the Estefano family directed the business toward the sports market. In 1970, the creation of the Penalty brand and the launch of products aimed at soccer marked the beginning of the company’s consolidation as an industry specialized in sports equipment. In the 1980s, Cambuci became a publicly traded corporation and broadened its scope with manufacturing rights for Asics-branded footwear and tennis equipment from Wilson and Doonay, strengthening its technological base and paving the way for international operations.

Over the following decades, Cambuci deepened its presence in soccer and other sports, forming partnerships with clubs, federations and sports confederations. Historical milestones include contracts with São Paulo Futebol Clube, Grêmio Foot-Ball Porto Alegrense and the Brazilian Futsal Confederation (CBFS), which helped consistently link the Penalty brand to the world of soccer and futsal. In the 1990s, the company expanded its production capacity with factories in São Paulo, Bahia and Paraíba and strengthened its presence in South America, including the founding of Penalty Argentina in 1998, its first branch outside Brazil. During this period, the brand became the official supplier of various sports federations and confederations, which increased the visibility of its products in the regional market.

Cambuci’s current business model, through the Penalty and Stadium brands, is centered on the manufacturing, commercialization, import and export of sports goods. Its portfolio includes balls, footwear, socks, apparel (such as jerseys and shorts) and accessories for sports and recreational activities. The company also operates with yarns, fabrics, bags, hats and other items related to sportswear, in addition to providing finishing, printing, bonding, dyeing and embroidery services, both for its own use and for third parties. Complementarily, Cambuci maintains import and export activities for machinery and equipment for apparel manufacturing, equity interests in companies with related or complementary activities, and consulting and administrative advisory services, which provides some diversification, even though its core activity remains clearly focused on sports goods.

From a branding and positioning perspective, Penalty is Cambuci’s main commercial asset. Created in 1970, it has become one of the most widely consumed soccer product brands in Brazil, with a broad line of balls, cleats, socks, apparel and equipment, and a strong association with clubs and national teams, especially in futsal. The Stadium brand, launched in 2005, was conceived to expand the company’s presence in the Brazilian sports universe, focusing on consumers in income classes C, D and E, offering a portfolio alternative with a value-for-money proposition aimed at this audience. The two brands complement each other in a strategy to cover different income brackets and consumer niches, allowing Cambuci to operate broadly in the sports equipment market, both in the more professional segment and in the mass-consumption segment.

Operationally, Cambuci is organized into Strategic Business Units (SBUs) that reflect its revenue-generating fronts. In Brazil, the Penalty SBU accounts for revenue from the main brand, the Stadium SBU for revenue from the brand aimed at lower-income consumers, the Retail SBU for company-owned stores and the International SBU for foreign sales and back-to-back operations. Abroad, there is an SBU dedicated to the Argentine operation. Despite this internal segmentation, the company highlights that, due to the concentration of its activities in the development and commercialization of footwear, balls, socks, apparel and accessories, it is organized from an accounting and economic standpoint as a single cash-generating operating segment.

Cambuci’s market presence combines its own industrial operations with a multichannel distribution network. The company has three factories in Brazil, particularly the ball manufacturing complex in Itabuna (BA), with annual production capacity of up to 4 million units, and a unit in Itajuípe (BA) dedicated to producing jerseys, shorts and socks. There is also a factory in Bayeux (PB) and two distribution centers strategically located in Itajuípe and Bayeux, which handle quality control, processing and storage before shipment to customers. Distribution is carried out through eight company-owned stores in cities in Bahia, Paraíba and São Paulo, and through a broad network of multibrand stores in all Brazilian states, as well as in about 14 countries. The multibrand channel is predominant in revenue generation: in 2021, 95% of consolidated gross revenue from merchandise sales came from this channel, versus 5% from company-owned stores, underscoring the importance of commercial reach over own retail.

The company also highlights its international presence, with a branch in Argentina and exports to countries in North America, Latin America and Europe. In 2022, net revenue from the domestic market represented 82.7% of consolidated revenue, while the foreign market accounted for 17.3%. In the same year, Brazil accounted for 85.3% of consolidated net revenue, Argentina for 14.6% and other countries for 0.1%. This breakdown illustrates the relevance of the domestic market for Cambuci, but also indicates a consistent presence abroad, especially in Argentina, where the Penalty brand has strong penetration in soccer.

On the competitive front, Cambuci operates in a sports goods market considered fragmented, both in retail and in industry, without a single dominant player, but with a trend toward concentration in specialized retail, where large chains centralize purchases and gain relevance compared to small regional retailers. The company operates with around 39 local sales representatives, complemented by agents in specific regions, as well as a key account structure dedicated to large chains such as Centauro, A Esportiva, Bayard and footwear retailers such as Pontal and Di Santinni. Delivery logistics are outsourced, using specialized carriers on a non-exclusive basis, which allows operational flexibility. This arrangement seeks to balance national reach, service to more than 5,000 multibrand clients and service to large accounts with higher volume and service requirements.

From a regulatory and environmental/social standpoint, although Cambuci is not subject to material foreign regulations, the company reports environmental and social initiatives mainly tied to its manufacturing operations. One highlight is the Solid Waste Management Program (PGRS), which organizes selective collection, appropriate segregation and storage, with reuse and recycling by authorized companies. In 2020, about 27% of waste from the manufacturing units was recycled. The company also invests in eco-efficiency, with water reuse in screen-printing processes, the use of biomass (reforested firewood and dende coconut husks) as fuel, co-processing of Class II waste in the cement industry and various practices for monitoring effluents and emissions. On the social front, there are projects such as the Diversity Project, in partnership with CAPS, which uses industrial waste in therapeutic handicraft workshops, and donations to entities such as the Legion of Good Will (LBV), as well as environmental education initiatives for employees and the community. These initiatives are coupled with a workforce of approximately 1,400 direct employees in Brazil, reinforcing the socioeconomic dimension of the company’s operations.

For investors analyzing CAMB3 shares on B3, Cambuci therefore presents itself as a sports goods manufacturer with established brands, its own manufacturing operations, a strong presence in the multibrand channel and meaningful, albeit minority, exposure to foreign markets, especially in South America. Its trajectory combines tradition in soccer and court sports with in-house technological development in products such as balls, cleats, over-the-calf socks and accessories, as well as environmental and social initiatives integrated into day-to-day industrial activities, factors that help shape the company’s risk and operating profile in the Brazilian capital market.