Havaianas parent company Alpargatas reports strong set of results

Havaianas, the iconic Brazilian footwear brand, delivered strong financial results, reporting net revenue of 1.1 billion Brazilian real in the fourth quarter and 4.1 billion Brazilian real for 2024, marking growth of 11.6 percent and 10.1 percent, respectively.

This performance was mirrored by its parent company, Alpargatas, which achieved similar figures, with net revenue reaching 1.1 billion Brazilian real in the quarter and 4.1 billion Brazilian real for the year, showing increases of 11.2 percent and 10 percent.

The company attributed this growth to enhanced consolidated commercial operations and a normalized sales volume throughout the year.

"We will maintain financial discipline, focusing on efficiency, meticulous inventory management, and strengthening our presence and profitability in Brazil," the company stated. "We are also committed to rebuilding scale and efficiency in Europe, addressing challenges in the US, prioritizing key distributor markets, and ensuring our portfolio companies remain aligned with strategic objectives."

Alpargatas and Havaianas witness strong growth

Alpargatas also saw a significant surge in profitability, with adjusted EBITDA jumping 38.9 percent in the quarter and 64.7 percent for the year, reaching 575.2 million Brazilian real. Consolidated net income stood at 2.1 million Brazilian real for the quarter and 107.4 million Brazilian real for the full year.

On the other hand Havaianas Brazil witnessed a 9.4 percent net revenue growth in the fourth quarter, fueled by a 4.8 percent increase in sales volume and a 4.4 percent rise in average price per pair. For the full year, net revenue in Brazil climbed 14.4 percent to 3.1 billion Brazilian real.

The brand's international operations also contributed to the positive results, with consolidated net revenue growing 10.8 percent in the fourth quarter. EMEA led the charge with a 30.9 percent increase, followed by the US with a 10.9 percent rise, while distributor markets experienced a 3 percent decline due to lower sales volume in the quarter.

With a 16.8 percent increase in COGS for the quarter and 4.7 percent for the year, Havaianas maintained strong profitability. Gross profit reached 361.2 million Brazilian real in the quarter, a 2.1 percent increase, and 1.7 billion Brazilian real for the year, reflecting an 18.2 percent growth. Adjusted EBITDA soared by 42.6 percent in the quarter and 69.8 percent for the year, reaching 194.4 million Brazilian real and 564.8 million Brazilian real.

Rothy's records robust results

Furthermore, Rothy’s, another key brand in Alpargatas' portfolio, delivered impressive results, with net revenue increasing by 20.1 percent in the fourth quarter and 16.8 percent for the year, reaching 78.1 million Brazilian real and 210.6 million Brazilian real, respectively. This growth was attributed to successful Black Friday and Cyber Week campaigns, as well as expanded sales in department stores and physical retail locations.

Rothy’s also saw significant margin improvement, with gross margin expanding by 7.3 p.p. and EBITDA surging by 167.7 percent in the quarter, reaching 12.7 million Brazilian real. For the full year, Rothy’s turned a 9.2 million Brazilian real loss in 2023 into a 17.7 million Brazilian real profit in 2024.