"Net revenue growth in Brazil in 1Q22 was driven by RGM initiatives and international market performance, which resulted in the highest Havaianas net revenue in a first quarter. Initiatives implemented to offset cost inflation contributed to protecting our EBITDA margin. These earnings make us confident about the strength of the Havaianas brand and our focus on operational excellence, revenue growth and EBITDA  protection, despite the challenging macroeconomic scenario in 2022", commented Beto Funari, CEO of Alpargatas.

Alpargatas

In the first quarter of 2022, Alpargatas posted net revenue of 927 million Brazilian Reais (157.7 million euros), which reflects an increase of 9%, as compared to the same period of last year.

Gross margin dropped by 4 percentage points to 47.6% in this first quarter, thanks to the increase in raw materials prices, which was partially offset by the revenue growth management with a price per pair increase of 10%, and recurring EBITDA declined by 3%, on a comparable basis to the first quarter of 2021.

In the first quarter of the current fiscal year, net income totalled 20.8 million Brazilian Reais (3.5 million euros) due to the acquisition of 49.9% of Rothy’s and the effects of discontinued operations with the sale of the Osklen brand (therefore, not comparable with the first quarter of 2021).

Havaianas

In the first quarter of 2021, Havaianas’ net revenue increased by 8% (by 11% cc), reaching 908 million Brazilian Reais, on a comparable basis to the same period of the prior year, with about 56 million pairs sold.

In the domestic market, Havaianas’ posted net revenue of 566.0 million Brazilian reais (96.3 million euros), which reflects an increase of 7.5%, as compared to the first quarter of 2021. Nevertheless, there was a 4.1% decline in total pairs sold to nearly 46.8 million.

Outside Brazil, the rubber sandal brand’s net revenue grew by 17.1%, totalling 342 million Brazilian reais (58.2 million euros), with total pairs sold increasing by 11.3% to 8.9 million pairs. This result was driven by the performance of Havaianas’ in the EMEA region: net revenue rose by 25% (currency-neutral), reaching 207.9 million Brazilian reais (35.4 million euros), as total pairs sold increased by 20%. In the US, net revenue rose by 8% to 7.8 million euros, but the volume of sales declined by 16%. In China, however, the volume of sales grew by 40%, but revenue declined by 27%.

Rothy’s

Alpargatas also reported some financial results for Rothy’s, the American footwear brand that it acquired in the past December. "In the historically slow first quarter", Rothy’s net revenue amounted to 32 million US dollars, reflecting growth of 20%, as compared to the first quarter of 2021. Net income for the quarter totalled 11 million US dollars.