After more than a year of work strengthening many aspects of its business model, the Brazilian group is seeing signs that its recovery on the right track. In Q2, Alpargatas turned a net profit of $23 million Brazilian reais (€3.75m) against a loss of R$53 million in the prior year. The Havaianas parent reported Ebitda of R$69.2 million (€11.3m) versus $6.8 million for the period ended June 30. Gross margin improved by 590 basis points to 47.1 percent from 41.2 percent as the company recorded the smallest gap between sell-in volume and sell-out volume, since the end of 2022.
Total sales increased by 9.5 percent to R$1,006.7 million (€164.2m) from R$919.2 million, sparked by 21.5 percent unit growth in Brazil to 45.0 million pairs and a 21.6 percent sales increase in the market to R$655.4 million (€106.9m). International sales and pairage, meanwhile, fell by 5.5 percent to R$351.3 million (€57.3m) and by 2.2 percent to 7.6 million, respectively.
In Europe, the group experienced lower-than-expected sales, which affected replenishment efforts. Alpargatas intends to continue focusing on improving service levels and other areas across channels to boost sales again in the important strategic region for the company.
At its Rothy’s subsidiary, gross margin increased by 280 basis points to 64.5 percent from 61.7 percent as the unit turned a net profit of US$6.0 million against a profit of $1.0 million. Total sales rose by 10.0 percent to US$58.9 million, and the segment’s Ebit was $4.9 million against a loss of $600,000.
