Alpargatas (ALPA4) investor relations material

Executive summary

• Strategy focused on growth in Brazil, international expansion, marketing/portfolio, and disciplined execution in costs and capital allocation, resulting in record Adjusted EBITDA of R$286 million (23.3% margin) and net income nearly doubling to R$170 million in 2Q26.

• Net sales reached R$1,226.4 million in 2Q26, up 11.3% year-over-year, with Havaianas contributing R$1,215 million (+11.4%).

• Strong brand performance and operational improvements in both Brazil and international markets, supported by successful marketing campaigns.

• Net income for the first half of 2026 reached R$332.5 million, up from R$199.4 million year-over-year, with consolidated revenue up 12% to R$2.46 billion.

• Comprehensive income for the period was R$293.5 million, reflecting positive operational results despite foreign currency translation losses.

Financial highlights

• Global volumes grew 9% in the quarter, driven by 9% growth in Brazil and 21% in Europe, while U.S. volumes declined 30% in the quarter but grew 40% in the first half year-over-year.

• Gross profit rose 14.6% to R$690.8 million in 2Q26, with gross margin up 1.6pp to 56.3%; gross profit for the first half was R$1.16 billion.

• Adjusted EBITDA increased 48.5% to R$286 million, with margin up 5.8pp to 23.3%.

• Net income nearly doubled year-over-year to R$169.7 million in 2Q26, with net margin at 13.8%.

• Free cash flow to equity was R$74 million in 2Q26, reversing a negative R$37 million in 2Q25; cash and cash equivalents increased to R$717.7 million as of June 30, 2026.

Outlook and guidance

• Management expects continued disciplined execution, focusing on sustainable growth, operational efficiency, and geographic diversification, with significant opportunities in Brazil and international markets.

• International operations are expected to regain scale and improve profitability as execution and distribution expand, with Europe targeting accelerated growth and the US monitoring its new business model.

• Continued rollout of new usage occasions and global marketing calendar.