Alpargatas Q2 2025: Havaianas revenue up 8 percent despite volume decrease

Alpargatas, the parent company of the Havaianas brand, has announced its second-quarter 2025 financial results, highlighting a period of strategic transition and profitability growth. The company reported that total volume sold reached 49 million pairs, a 6 percent decrease year-over-year, which was a planned result of a sell-in pull-forward strategy executed in the first quarter. Despite the lower volume, consolidated net revenue for the Havaianas brand grew by 8 percent year-over-year to 1,090 million reais.

Alpargatas revenues for the period increased to 1.1 billion reais, gross profit improved to 603 million reais, adjusted EBITDA rose to 193 million reais and net profit surged to 87 million reais.

Havaianas Brazil posts 6 percent revenue growth

In the Brazilian market, Havaianas' total volume was down 5 percent, but net revenue grew by 6 percent. The company noted that this was a healthy adjustment to balance supply with consumer demand, and as a result, Havaianas regained positive market share, reaching 77 percent in the grocery channel by the end of June. Gross margin for the Brazilian operation expanded by 7 percentage points to 46 percent, while the EBITDA margin reached 20 percent, an increase of 9 percentage points.

The international segment for Havaianas also showed meaningful progress. Europe recorded a 6 percent volume growth and an 18 percent increase in net revenue, marking the first high-season quarter with year-over-year growth since 2022. In the United States, sales volume surged by 30 percent and net revenue accelerated by 42 percent. This was achieved while preparing for a new business model that will transition to leveraging a partner's logistics and commercial reach to improve profitability and reduce costs.

However, in distributor-led markets, such as the Middle East and Asia-Pacific, volume declined by 31 percent as the company prioritised margin quality and a more standardised go-to-market model. Overall, the international operations' gross margin reached 70 percent, and the EBITDA margin was 14 percent, an increase of 16 percentage points from the prior year.

Alpargatas also provided an update on its Rothy's brand, noting consistent results and sequential progress. New product launches contributed to a 7 percent revenue growth. The company was able to preserve a gross margin of 61 percent and the brand's EBITDA saw a significant improvement, reaching 21 million dollars on a trailing twelve-month basis. The company is closely monitoring developments related to the U.S. tariff agenda and is in dialogue with shareholders to ensure Rothy's resilience and profitability in the medium and long term.

Alpargatas proposes capital reduction

In a separate announcement to the market, Alpargatas' board of directors approved a proposal for a capital reduction of 850 million reais. The proposal, which is subject to shareholder approval at an Extraordinary General Meeting, involves returning funds to shareholders in local currency without canceling shares.

The company stated that this measure is intended to "enhance the Company’s capital structure" and "promote a more balanced mix of funding sources" to support its business plan and "value creation strategy for shareholders". This move reflects the company's "increased confidence in the consistent recovery of its cash generation and earnings capacity" and its enhanced financial discipline.