Alpargatas reported a net revenue of 1.12 billion Brazilian reais (184.5 million euros) in the fourth quarter, up by 11.2% year-over-year, and a net revenue of 4.10 billion Brazilian reais (675.6 million euros) in the full year 2024, up by 10.0% year-over-year. This growth was driven by improvements in Havaianas’ consolidated commercial operations and a normalisation of sales volumes throughout the year.

While the company’s gross profit margin decreased by 3 percentage points to 33.3% from 36.3% in the fourth quarter due to inventory write-off provisions, the full year gross profit margin increased by 3 percentage points to 43.1% from 40.1% in 2023.

Alpargatas highlighted a 38.9% year-over-year growth in the fourth quarter adjusted EBITDA, excluding inventory write-offs, and a 64.7% year-over-year growth in the adjusted EBITDA to 575.2 million Brazilian reais. “This result takes into account the increase in investments in marketing and the replenishment of bonus provisions”, reads the statement.

The company’s fourth quarter normalized net income increased significantly by 496.7% to 28.7 million Brazilian reais (4.7 million euros) from 4.8 million Brazilian reais (791 thousand euros) in the same period a year ago. Full year normalised net income improved to 157.9 million Brazilian reais (26.0 million euros) from a normalised net loss of 49.1 million Brazilian reais (8.1 million euros) in 2023.

The Brazilian company also reported that it closed 2024 with an operational cash generation of 570 million Brazilian reais (93.9 million euros), the seventh consecutive quarter of positive net cash generation.

Brands

In the fourth quarter of 2024, Havaianas’ net sales increased by 11.6% to 1.10 billion Brazilian reais (181.2 million euros), as compared to the same period of the prior year, with volumes sold increasing to 65.4 million pairs from 62.9 million pairs. In the domestic market, the brand’s net sales totalled 979.7 million Brazilian reais (161.4 million euros), up by 9.4% year-over-year, and abroad 126.8 million Brazilian reais (29.9 million euros), up by 31.3% year-over-year.

Meanwhile, Havaianas’ full year net sales increased by 10.1% to 4.06 million Brazilian reais (669.9 million euros), with volumes sold increasing to 226.6 million pairs from 206.9 million pairs.

Rothy’s fourth quarter net revenue increased by 20.1% year-over-year to 78.1 million Brazilian reais (1.3 million euros) and by 16.8% year-over-year to 210.6 million US dollars (34.7 million euros) in the full year. This was driven by successful Black Friday and Cyber Week campaigns and increased sales in department store and physical retail locations.

1 BRL = 0.16 EUR