Havaianas owner Alpargatas reports drop in revenue and profit

Net revenue at the Brazilian footwear player Alpargatas reached 1 billion Brazilian real in the fourth quarter, a decrease of 8.5 percent driven by a 7.3 percent drop in volumes sold.

In the year 2023, net revenue reached 3.7 billion Brazilian real, a contraction of 11 percent driven by the volume decrease in Brazil and internationally.

Fourth quarter gross profit reached 366.6 million Brazilian real, a drop of 11.9 percent, while in 2023, gross profit reached 1.5 billion Brazilian real, a decrease of 22 percent. The consolidated net loss in the quarter was 1.6 billion Brazilian real and the net financial result was negative by 27.3 million Brazilian real.

Havaianas revenues decrease in Q4

The company said in a statement that Havaianas’ net revenue was impacted by the lower sales volume in the quarter and reached 991.8 million Brazilian real, a decrease of 8.7 percent and 8 percent in constant currency.

Net revenue per pair dropped 1.5 percent and 0.8 percent in constant currency, mainly driven by the reduction in international markets and by the geographic mix, in which Brazil became more relevant in comparison to the fourth quarter of 2022.

Havaianas Brazil net revenue dropped 0.2 percent, with revenue per pair increasing 2.8 percent as a result of the price increase carried out throughout 2022. Havaianas international net revenue dropped 48.9 percent in the fourth quarter, driven by the negative performance of EMEA and distributors, mainly APAC.

Havaianas’ gross profit totaled 353.7 million Brazilian real, a drop of 20.4 percent, while gross margin was 35.7 percent, a drop of 5.2 pp. In Brazil, the gross margin was 38.1 percent, down 1.2 pp and the gross margin from international operations was 13.2 percent, a drop of 35.1 pp in constant currency.

Brazil’s EBITDA reached 159.9 million Brazilian real, with an EBITDA margin of 17.9 percent. The international EBITDA was negative at 100.4 million Brazilian real due to strong pressure on costs per unit. Havaianas’ consolidated EBITDA reached 59.5 million Brazilian real in the fourth quarter, a decrease of 59.5 percent versus the previous year.

Rothy’s revenues increase by 20.8 percent

The company added that Rothy’s achieved net revenue of 65.1 million dollars, accounting for an increase of 20.8 percent due to the increase in volume related to the successful execution of the year-end sales plans.

Gross margin increased 5.8 pp, while EBITDA reached 4.7 million dollars in the quarter, a positive evolution of 6.7 million dollars versus the fourth quarter of 2022.