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Alpargatas posts 40 percent drop in Q2 profit

By Prachi Singh


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Image: Havaianas

In the second quarter, Alpargatas reached net revenue of 1.1 billion Brazilian real, up 2 percent or 10 percent in constant currency against the second quarter of 2021.

In the second quarter, Alpargatas , owner of Havaianas, recorded a 40 percent decrease in net income to 64.2 million Brazilian real. Excluding data from Rothy's, recurring net income reached 114 million Brazilian real, a decrease of 6.4 percent.

Alpargatas reports sales increase at Havaianas

Havaianas net revenue in the quarter reached 1,050 million Brazilian real, up 1 percent or up 9 percent in constant currency.

The company said in a statement that the positive effect of the RGM for Havaianas Brazil and international markets with an increase of 4 percent or 12 percent in constant currency in revenue per pair was noteworthy.

The consolidated gross profit reached 550 million Brazilian real, a 5 percent decrease, due to the exchange rate devaluation, since gross profit in constant currency grew 5 percent.

Recurring EBITDA for Havaianas reached 178 million Brazilian real, 16 percent or 5 percent reduction in constant currency, while EBITDA margin decreased 4pp.

Havaianas Brazil net revenue grew 19 percent during the quarter under review , leveraged by RGM initiatives, reflecting an increase in the revenue per pair of 21 percent versus 2Q21.

Havaianas international net revenue reached 88 million dollars or 433 million Brazilian real, 41 percent of Havaianas total net revenue, down 16 percent versus 2Q21, which was impacted by the exchange rate devaluation. In constant currency, net revenue fell 2 percent.

EMEA net revenue fell 14 percent, while in constant currency net revenue grew 5 percent driven by RGM, a 5 percent revenue per pair growth versus 2Q21. This growth, the company added, is due to the product and channel mix with increased DTC physical stores and consequently, higher full-price product sales.

Net revenue in the USA fell 29 percent or 23 percent in constant currency due to the volume drop, which was partially offset by the increase in prices, reaching a net revenue per pair of 73 Brazilian real in constant currency, up 21 percent against 2Q21). China net revenue was impacted by Covid-19 restrictions.

Alpargatas posts revenue growth at Rothy’s

In December 2021, Alpargatas announced the acquisition of 49.9 percent of Rothy's, a native American digital footwear and accessories brand.

In the second quarter, the company's net revenue reached 59 million dollars, a 82 percent increase versus 2Q21, reaching 91 million dollars in the first half year, up 54 percent.

The company further said that investments in marketing and physical store operations to accelerate growth represented 25 million dollars, 123 percent higher than 2Q21. As a result, EBITDA in the quarter was negative 6 million dollars and added up to negative 15 million dollars in the first half period.