Havaianas Powers Alpargatas’ Profit Jump in Third Quarter

Alpargatas accelerates. The parent company of Havaianas closed the third quarter of the year with the best operating results in its history. The Brazilian company achieved adjusted ebitda of 256 million reais ($47.7 million), 87% more than in the same period of 2024, and an operating margin of 22.9%.

Net profit soared 199% to 171 million reais (31 million euros), while net sales rose 7.5% to 1.115 billion reais ($208.7 million). In the first nine months of the year, the group accumulated a turnover of 3.31 billion reais ($617 million) and a gross operating profit (ebitda) of 654 million reais ($122 million), more than double that of a year earlier.

Havaianas’ business in Brazil was the main driver in the quarter. Sales in the domestic market increased by 6.9% to 872 million reais ($162.8 million), while ebitda rose by 40% to 259 million ($48.3 million), reaching a margin of 29.6%.

Havaianas’ volume sold feel to 51.6 pairs, 3% less 

The group highlighted the recovery of the gross margin, which stood at 49.2%, five points higher than in 2024, thanks to more efficient portfolio management, price optimization and the reduction of raw material costs. Although the volume sold fell by 3% to 51.6 million pairs, sales per pair increased by 10%, reflecting an improvement in the product mix and profitability.

In the international business, sales rose 9% to 230 million reais ($42.9 million), with a 7% increase in volume to 4.9 million pairs. Europe advanced by 8% and the United States by 12%, while the distributor markets reversed the decline of the first half with a 5% increase. International gross margin improved three points to 63.3%, reflecting the reduction in structural costs and an adjustment in marketing expenditure following the peak in investment linked to the 2024 Olympic Games.

Consolidated operating expenses fell by 9.5%, with a 33% drop in marketing, bringing them to normal levels compared to previous years. The company has indicated that this adjustment will not affect the overall annual advertising spend.

Rothy’s continues its progress with new channels and a positive ebitda of $1.4 million

In September, the company obtained approval for a capital reduction of 850 million reais ($158.6 million), which will begin to be executed in November, as part of its plan to optimize the financial structure without compromising growth.

The U.S. subsidiary Rothy’s maintained its growth path, with a 15% increase in sales, to $45.3 million, and a positive ebitda of $1.4 million. The brand, which specializes in sustainable footwear, opened four new stores and continues to expand its B2B distribution.

Gross margin stood at 62%, despite the impact of tariffs on products from China, partially offset by improvements in industrial efficiency and logistics. In the last twelve months, Rothy’s has achieved a cumulative ebitda of $24.6 million.