Alpargatas sees revenue up 18% in the first quarter

Alpargatas has ended the first quarter with double-digit revenue growth. The Brazilian group’s net sales increased by 11.7% in the January to March period compared with the same period the prior year to 902.1 million Brazilian real ($246.9m, €208.9m), driven particularly by a strong momentum in the Brazilian market.

Photo: Havaianas

In Brazil, the revenue of the company that owns Havaianas grew by 22.9% during the period to 572.9 million Brazilian reals ($156m, €132.6m). But the group’s international division, as well as its subsidiary in Argentina, suffered declines in revenue.

Net revenue dropped 2.6% year-on-year in Argentina to 150.1 million reals ($41m, €34.7m), while the Sandals International division turned over 179.1 million reals ($49m, €41.4m), 4.4% less than the same period in 2017.

Again, Alpargata’s home market performed better than Argentina and the other markets where the company operates, a trend that was also revealed in 2016 and 2017.

In terms of volume, sandal sales increased 33.1% year-on-year to 47,391 pairs in Brazil, while the group’s international business sold 7,150 pairs in the first quarter. This is 20.9% less than the previous year.

The group said that sales volumes overseas were lower due to lower exports to some distributors served by the EMEA operation and the reviewed distribution strategy in the US.

Ebitda fell significantly by 31.9% to 169.1 million Brazilian reals ($46.2m, €39.1m). According to the company’s trading update, profits were negatively impacted by non-recurring items linked to the sale of real estate in Argentina. Discounting the effect of other non-recurring expenses, recurring consolidated Ebitda was up 40.3% in the first quarter.

Finally, the Brazilian group’s consolidated net income fell 37.2% to 112.8 million reals ($10.1m, €26.1m).

Translated by Barbara Santamaria

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