Havaianas posts full year revenue growth of 25.7 percent

Havaianas net revenue in the fourth quarter reached 1,054.3 million Brazilian real, a 7.3 percent or 6.8 percent in CC increase against the fourth quarter of 2020 and 19.3 percent increase against the fourth quarter of 2019.

Havaianas net revenue in 2021 was 3,912.6 million Brazilian real, a 25.7 percent or 24.5 percent in CC increase versus 2020 and 33.4 percent higher than 2019.

Alpargatas net revenue in the fourth quarter was 1,069.0 million Brazilian real, a 7.4 percent increase, highlighting the expansion of the international market and RGM initiatives at Havaianas Brazil, where the price/mix grew 9.8 percent.

In 2021, the parent company’s net revenue reached 3,948.6 million Brazilian real, growing 25.6 percent versus 2020 driven by volume growth of 12 percent, in addition to RGM initiatives with an 11.3 percent or 8.7 percent constant currency price increase per pair.

“With this long-term strategy, Alpargatas grew its annual revenue rate by 3.5 times, driven by Havaianas annual growth rate above 14 percent. Net income went from a historic annual growth rate of 5 percent (2012-2017) to 29 percent (2018 - 2021) and the net margin went from 9 percent to 18 percent. In addition, there was also a significant increase in return rates,” said Roberto Funari, CEO of Alpargatas in a statement.

Review of Havaianas Q4 and full year results

Havaianas Brazil revenues reached 877.7 million Brazilian real, an increase of 5.5 percent and 16.8 percent against the fourth quarter of 2020 and 2019, respectively.

Havaianas international revenues reached 176.5 million Brazilian real, a 17.3 percent or 13.9 percent CC increase versus fourth quarter of 2020 and 33.4 percent versus fourth quarter of 2019.

Europe reported revenues of 55.2 million Brazilian real, a 36.5 percent or 30.8 percent CC increase versus the fourth quarter of 2020. The company’s distribution markets grew 24.7 percent or 17.5 percent in CC.

LATAM revenue rose 54.3 percent. The company added that the 9.7 percent or 13.3 percent CC drop in net revenue in the US is mainly due to the decrease in volumes, which was compensated by a 23.6 percent or 18.8 percent CC revenue increase per pair due to the reduction of promotional sales.

For the full year Havaianas Brazil reached 2,667.7 million Brazilian real in net revenue, a 19.5 percent increase versus 2020, due to the 10.2 percent growth in volume and 8.4 percent increase in price/mix.

Havaianas international increased its share from 28 percent to 32 percent of the total net sales in 2021, a 41.5 percent or 36.6 percent CC increase versus 2020 and 59.4 percent versus 2019.

The net revenue of the Big Bets reached 905.6 million Brazilian real, a 35.4 percent or 30.6 percent CC increase.

Highlights of financial performance of Alpargatas - Havaianas’ parent company

In the fourth quarter, consolidated gross margins reached 42.9 percent, a 7.3pp reduction, due to the increase in raw material prices by 42 percent, partially mitigated by RGM with a price increase per pair of 10.5 percent or 9.7 percent in CC.

During the year, the consolidated gross margin per pair grew 8.4 percent, mainly due to contributions from the international market and RGM with an increase in the price per pair of 11.3 percent or 8.7 percent in CC, which offset the increase in raw material prices by 26 percent versus 2020.

Statutory EBITDA in the fourth quarter was 169.4 million Brazilian real, a 35.2 percent increase, with 3.3pp. in margin expansions. In 2021, statutory EBITDA reached 750.0 million Brazilian real, an increase of 76.3 percent, with a margin expansion of 5.5pp. Consolidated net income in 2021 was 692.6 million Brazilian real, up 445.8 percent against 2020.