Alpargatas (ALPA4) investor relations material

Executive summary

• Achieved record adjusted EBITDA of R$286 million in 2Q26 (margin 23.3%), the highest for a second quarter, driven by sales growth, cost discipline, and strong brand performance in Brazil and international markets.

• Net sales rose 11.3% year-over-year to R$1,226.4M, with Havaianas contributing R$1,215M (+11.4%).

• Net income nearly doubled to R$170 million, up 95% from 2Q25, with net margin at 13.8%.

• Havaianas brand saw strong volume growth in Brazil (+9%) and internationally (+12%), with notable performance in Europe (+21%).

• Strategy focused on growth in Brazil, international expansion, marketing/portfolio, and disciplined execution in costs and capital allocation.

Financial highlights

• Net revenue: R$1,226.4 million in 2Q26 (+11.3% YoY); gross profit: R$690.8 million (+14.6% YoY), gross margin 56.3% (+1.6pp YoY).

• Adjusted EBITDA: R$286 million (+48.5% YoY), margin 23.3% (+5.8pp YoY).

• Free cash flow to equity was R$74M, reversing a negative R$37M in 2Q25.

• ROIC reached 18% in LTM 2Q26, up 11pp YoY.

• Financial leverage remains low at 0.5x Net Debt/EBITDA, with net debt at R$532 million.

Outlook and guidance

• Management remains confident in the long-term strategy, focusing on sustainable growth, operational efficiency, and global brand expansion.

• Continued focus on expanding leadership in Brazil and scaling international operations, especially in Europe and the US.

• Capital expenditure for 2026 is budgeted at R$243 million, with R$54 million invested in 2Q26.

• No formal guidance provided, but management expects continued disciplined execution and sees significant opportunities for growth in both Brazil and international markets.

• International operations expected to regain scale and improve profitability as execution and distribution expand.