Alpargatas (ALPA4) investor relations material

Executive summary

• Achieved 7.5% year-over-year net sales growth in 3Q25, with consolidated net sales reaching R$1.12 billion and strong international and domestic performance.

• Record quarterly consolidated Adjusted EBITDA of R$256 million, with R$253 million from Havaianas, and highest nine-month consolidated EBITDA of R$654 million.

• Net income reached R$171 million, up 199% year-over-year, with adjusted net income of R$174 million (+131%).

• Significant efficiency gains and cost reductions, including a 17% decrease in fixed expenses since 2022.

• Havaianas recognized as the most desired fashion brand globally, with Lyst naming it the most desired fashion item.

Financial highlights

• Gross margin improved to 52.5% from 47.7% in 3Q24, with gross profit up 18.4% to R$586 million.

• Adjusted EBITDA margin rose to 22.9% from 13.2% in 3Q24, and EBITDA more than doubled to R$262 million (+110.7%).

• Net profit increased to R$171 million from R$57 million in 3Q24.

• Generated R$205 million in cash during the quarter, with ten consecutive quarters of positive operating cash generation totaling R$1.3 billion.

• Operating expenses fell 9.5% year-over-year, mainly due to a 33% reduction in marketing spend.

Outlook and guidance

• Focus on expanding specialized channels in Brazil, business model change in the U.S. with Eastman Group partnership, and disciplined pricing management across all geographies.

• Management remains focused on sustainable growth, financial discipline, and scaling operations in Brazil and internationally.

• Expectation for continued growth in Europe and the U.S. in 2026, with operational leverage and efficiency gains supporting profitability.

• Investment plan for 2025 totals R$220 million, balancing growth and operational optimization.

• Focus on inventory management and efficiency to sustain profitability.