For FY24, the Havaianas parent realized a 73 percent improvement in year-over-year Ebitda to R$342.1 million (€57.0m) as the annual gross margin widened by 290 basis points to 42.9 percent.
The Brazilian footwear group, in reporting its Q4 and FY24 results, said it is now “well-positioned” to maintain a more controlled approach to inventory management and liquidation following actions that included SKU adjustments and inventory write-offs. Alpargatas took an inventory write-off of 164.3 million Brazilian reais (€27.4m) in the final period and R$227.3 million (€37.1m) for the full year.
Unit volume expanded by 9.7% year-over-year
Ebitda declined by 49 percent to R$30.1 million (€5.0m) and the gross margin slipped by 30 basis points to 32.6 percent in Q4. Revenues rose by 11.6 percent to R$1,106.5 million (€184.3m) in Q4 with sales in Brazil rising 9.4 percent to R$979.2 million (€163.2m) and increasing by 31.3 percent in all international markets to R$126.8 million (€21.1m). Pairage was up 4.0 percent in Q4 to 65.4 million units with Brazilian volume gaining 4.8 percent to 62.2 million and international declining by 10.4 percent to 3.1 million pairs. In Europe, unit volume expanded by 9.7 percent year-over-year to 1.0 million as the company worked to re-ignite its business across the region. In the US, Alpargatas is exploring alternatives that will enable it to balance costs and simultaneously build a long-term growth strategy.
73% improvement in year-over-year Ebitda
For FY24, the Havaianas parent realized a 73 percent improvement in year-over-year Ebitda to R$342.1 million (€57.0m) as the annual gross margin widened by 290 basis points to 42.9 percent. Annual revenues rose by 10 percent to R$4,061.2 million (€676.5m) from R$3,689.9 million. Sales in Brazil improved by 14.4 percent to R$3,106.5 million (€517.5m) and fell by 1.9 percent in international markets to R$954.6 million (€159.0m). A new collection of men’s flip-flops featuring different price points and shapes, where the company sees growth potential, was launched in FY24.
The group’s Rothy’s business realized a 168 percent increase in Q4 Ebitda to US$12.7 million against US$4.7 million. Sales rose by 20.1 percent to US$78.1 million as gross margin expanded by 730 basis points on logistics improvements that included lower freight costs between China and the US. Full-year Ebitda was US$17.7 million against a loss of US$9.2 million as annual sales grew by 16.8 percent to US$210.6 million and same-store sales increased by 29.0 percent.
Meanwhile, Alpargatas reported that its FY24 marketing budget equaled R$389 million (€64.8m).
