Alpargatas set to invest to accelerate Havaianas’s growth

By

Sarah Ahssen

Translated by
Nicola Mira

Published
Nov 8, 2021

In the first nine months of the 2021 financial year, Brazilian footwear group Alpargatas generated a revenue in excess of BRL3 billion (€469 million), equivalent to a 35% increase over the same period a year earlier. The group also generated a net income of BRL389.5 million (€61 million), up 498% compared to the previous financial year.
 

While the terms of comparison are favourable for Alpargatas, since a year ago the world was in the midst of the Covid-19 crisis, its results are also notably driven by the performance of Havaianas. In the first nine months of the year, the flip flop brand recorded a revenue of BRL1 billion (€156 million). In Brazil, Havaianas’s domestic market, sales grew by 10%. On foreign markets, Havaianas instead posted year-on-year growth rates of 23% in terms of sales volume, 8% in terms of revenue and 167% for EBITDA.
 
“The results in Q3 2021 show the strength of Havaianas, which keeps growing both internationally and in Brazil. For the second quarter running, the brand has beaten previous records for sales volume and net revenue, while also improving EBITDA. We reached a major milestone in our efforts to broaden the group's portfolio by successfully launching the Havaianas sneakers on the Brazilian market, and increasing the sandals category’s penetration,” said Beto Funari, CEO of Alpargatas.

Alpargatas will invest BRL600 million between now and 2022 to support the growth of Havaianas. Altogether, in the last two years, Alpargatas has invested BRL900 million, the most in the group’s history. The goal is to boost output capacity, optimise logistics, extend the product range and strengthen both the physical and digital sales channels.