Alpargatas (ALPA4) investor relations material

Executive summary

• Achieved record quarterly EBITDA of R$300 million, the highest in company history, with a consolidated EBITDA margin of 24% in 1Q26, driven by volume growth and operational efficiency across all geographies.

• Net sales rose 12.5% year-over-year to R$1,229.5 million, with Havaianas contributing R$1,216.6 million, up 12.5% from 1Q25.

• Net income increased 44.8% year-over-year to R$162.8 million, with net margin expanding by 3.0 p.p. to 13.2%.

• Strategic focus on accelerating growth in Brazil and international markets, with a new distribution model in the U.S. and continued expansion in Europe.

• Interim financial statements for the quarter ended March 31, 2026, were reviewed and considered fairly presented by both the independent auditors and the audit committee.

Financial highlights

• Global volume grew over 8% year-over-year to 61.5 million pairs, with Brazil up 8%, Europe up 18%, and U.S. up 161% due to the new distribution model.

• Gross profit increased 15.4% to R$646.8 million, with gross margin up 1.3 p.p. to 52.6%.

• Cash generation reached R$207 million in the quarter, totaling R$352 million over the last 12 months.

• Net income attributable to controlling shareholders was R$162.8 million, up from R$112.4 million year-over-year.

• Cash and cash equivalents increased to R$794.7 million at quarter-end.

Outlook and guidance

• Confident in continued improvement of financial indicators and further margin expansion through scale and efficiency.

• Focus on expanding in specialized and modern trade channels in Brazil, accelerating growth in Europe, and supporting US business model evolution.

• Management is monitoring Brazil's tax reform and OECD Pillar Two rules, with no immediate effect expected for 2026.

• No planned price adjustments currently, but monitoring cost pressures from raw materials and freight.

• Expectation of regaining growth in Middle East and Africa after geopolitical tensions subside.