“Our 2Q24 results reflect the ongoing transformation journey we started a year ago (…). We are confident in the solid steps we’ve taken so far and understand the relevance of these developments in establishing a strong foundation for sustainable growth, which only will be structural with the development of the necessary capabilities to capture the opportunities which we had identified in our market. Furthermore, we seek to solidify our international growth model, focusing on priority geographies with operational and brand consistency, by leveraging emerging trends, we aim to innovate based on the needs of our clients and consumers”, Alpargatas updated

Second Quarter Results

In the second quarter of the year 2024, the company’s net sales reached 1.02 billion Brazilian reais (165.4 million euros), an increase of 10% on a comparable basis to the same period of last year.

The growth in the volume of pairs sold by Havaianas Brazil was the main driver of this increase, said Alpargatas. In the second quarter, 45.0 million pairs of Havaianas were sold in the domestic market, representing an increase of 21.5% over the same period last year. Internationally, however, the brand recorded a 2.2% year-over-year decline in volume to 7.6 million pairs.

As a result, Havaianas’ second quarter net sales grew by 9.5% to 1.0 billion Brazilian reais (162.1 million euros), as compared to the same period of the previous year. The Brazilian market contributed 655.4 million Brazilian reais (106.2 million euros) to the total figure, up by 21.6%, whereas the international market contributed 351.3 million Brazilian reais (57.0 million euros), down by 7.6%, as compared to the same period of the previous year.

Rothy’s also performed well over the quarter. The brand’s net sales totalled 58.9 million Brazilian reais (9.5 million euros), which indicates an increase of 10.0%, on a comparable basis to the second quarter of last year. The parent company said this was due to the “successful product and campaign launches throughout the quarter”.

In the three months to the end of June, Alpargatas recorded a gross profit increase of 27% to 479.4 million Brazilian reais (77.7 million euros), as compared to the second quarter of 2023, and a gross margin improvement to 47.2% from 40.8%.

Overall, the strong sales, reduced operating costs and disciplined cost management resulted in a consolidated EBITDA of 69.6 million Brazilian reais (11.3 million euros) and a consolidated EBITDA margin of 4.8% in the second quarter, a significant improvement from the consolidated EBITDA of 4.8 million Brazilian reais (778 thousand euros) and EBITDA margin of 0.5% reported in the same period last year. It’s also a “sequential improvement since the beginning of the restructuring process started in the second quarter of 2023”.

Finally, in the second quarter of 2024, Alpargatas reported a net income from continuing operations of 23.4 million Brazilian reais (3.8 million euros) in the second quarter of this year, as compared to a net loss of 53.1 million Brazilian reais (8.6 million euros) in the same quarter of the prior year.