Havaianas owner Alpargatas posts drop in Q2 revenue

In the second quarter, Alpargatas net revenue decreased to 926 million Brazilian real and gross profit reached 377.6 million Brazilian real, 32 percent less compared to the second quarter of 2022.

The company's normalised EBITDA was 4.8 million Brazilian real with an EBITDA margin of 0.5 percent and consolidated net losses in the period reached 53.1 million Brazilian real.

Havaianas' net revenue, the company said in a release, was impacted by the lower sales volume in the quarter and reached 919.2 million Brazilian real, down 12.5 percent and down 13.1 percent in constant currency. Net revenue per pair increased 10.6 percent and 9.7 percent in constant currency.

Havaianas Brasil net revenue dropped 12.6 percent, with an increase in the revenue per pair of 8.5 percent. Havaianas international net revenue per pair rose 17.6 percent driven by price adjustment in Europe and 9.5 percent increase in revenue per pair from distributor markets. In the US, revenue per pair grew 0.7 percent in constant currency.

Havaianas' gross profit was 378.5 million Brazilian real in the quarter, down 31.2 percent versus the previous year. Total Havaianas gross margin was 41.2 percent, down 11.2 p.p. Havaianas Brasil gross margin was 27.5 percent, a 12.6 p.p drop. Havaianas international gross margin was 60.5 percent, down 9.4 p.p. in constant currency.

Havaianas' EBITDA reached 6.8 million Brazilian real this quarter, down 96.2 percent, while the EBITDA margin was down 16.2 p.p. or down 16.3 p.p. in constant currency compared to 2Q22.

The company ended the quarter with 992 stores, net opening of 85, 26 in Brazil, and 59 in the international business.

The company added that Rothy's achieved net revenue of 53.6 million dollars with a reduction of 8.6 percent. On the other hand, the gross margin increased 7.3 p.p. The EBITDA showed a positive result of 1.3 million dollars in the quarter, a positive evolution of 7.4 million dollars versus the second quarter of 2022.