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Havaianas owner Alpargatas posts Q4 loss

By Prachi Singh


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Image: Courtesy of Havaianas

Fourth quarter net revenue at Alpargatas reached 4.2 billion Brazilian real, up 6 percent or 10 percent in constant currency (CC) versus 2021. Recurring EBITDA was 689 million Brazilian real, 17 percent of net revenue. The company reported net loss of 21 million Brazilian real.

Havaianas net revenue in the fourth quarter reached 1,086 million Brazilian real, up 3 percent or 5 percent in CC versus the same quarter in 2021. During the year, the brand recorded 4,121 million Brazilian real, an increase of 5 percent or 9 percent in CC against 2021.

Havaianas performance in Q4 and 2022

The company said net revenue at Havaianas Brasil grew 2 percent in the fourth quarter, driven by price increases and mix improvement initiatives that caused an increase in the revenue per pair of 16.5 percent. During the year, there was a net revenue growth of 9 percent versus 2021.

Havaianas International net revenue reached 36 million Brazilian real representing growth of 7 percent. Net revenue in CC grew 19 percent and revenue per pair increased 11 percent in CC. During the year, international revenue accounted for 29 percent of the total net revenue for Havaianas.

EMEA net revenue grew 1 percent and revenue in CC rose 20 percent in the fourth quarter and was driven by RGM, with an increase in revenue per pair of 10 percent in CC. During the year, the company recorded 16 percent growth in CC of the net revenue in the region.

US net revenue fell by 20 percent or 15 percent in CC due to the volume drop of 27 percent. The company added that it noticed a price per pair increase of 18 percent in CC versus the fourth quarter of 2021. Revenue from DTC channels grew, driven by e-commerce performance, which grew 86 percent against the fourth quarter last year.

Net revenues in China dropped 37 percent or 33 percent in CC. Distributors net revenue grew 23 percent or 32 percent in CC and was driven by volume growth in APAC distributor markets, and revenue growth per pair was 14 percent or 22 percent CC in these markets.

Highlights of Havaianas operational results

In the fourth quarter, consolidated gross profit was 442 million Brazilian real, 2 percent drop, while in constant currency, the consolidated gross profit was 444 million Brazilian real, 1 percent decrease. Gross profit reached 1,928 million Brazilian real during the year, an increase of 5 percent in CC.

Havaianas' recurring EBITDA reached 147 million Brazilian real in the fourth quarter, down 19 percent or 21 percent in CC. The EBITDA margin dropped 4pp or 5pp in CC due to the volume drop in Brazil and the increase in distribution and marketing expenses.

During the year, Havaianas' recurring EBITDA added up to 672 million Brazilian real, down 12 percent versus 2021 and down 3pp in the margin. In constant currency, consolidated recurring EBITDA dropped 8 percent year-on-year, decline of 3pp of margin in CC.

In Havaianas Brasil, recurring EBITDA reached 174 million Brazilian real, with a 19 percent margin in the fourth quarter, 5pp decline. During the year, EBITDA increased to 548 million Brazilian real, down 1 percent, with a 2pp decrease in margin versus 2021.

At Havaianas International, recurring EBITDA was negative by 26 million Brazilian real, an improvement of 6 million Brazilian real and 1 million Brazilian real in CC. During the year, recurring EBITDA added up to 124 million Brazilian real, down 41 percent or 31 percent in CC.