Alpargatas (ALPA4) Q3 2024 earnings summary

Executive summary

• Net sales surpassed R$1.04 billion in 3Q24, up 16% year-over-year, with gross profit up 36% and EBITDA more than doubling to R$137 million, reflecting strong operational improvements.

• Net profit reached R$66 million, reversing a loss in 3Q23, and normalized EBITDA margin improved by 4.6pp to 13.2%.

• Havaianas Brazil saw record profitability, volume growth, and a 15% increase in net sales, while international operations posted 13% volume growth and margin recovery.

• Rothy’s posted 29% revenue growth and improved margins, supporting consolidated performance.

• Net cash generation totaled R$186 million, returning to a net cash position for the first time since early 2022.

Financial highlights

• Consolidated net sales: R$1.04 billion (+16% YoY); gross profit: R$494.5 million (+36% YoY); gross margin 47.7% (+7.2pp).

• Normalized EBITDA: R$137 million (+78% YoY); margin 13.2% (+4.6pp); net margin 5.5%.

• Havaianas total volume grew 13% YoY; Brazil net sales up 15.4%, international up 4.2%.

• Rothy’s net sales increased 29% (USD 39M), with EBITDA loss narrowing by USD 6.2M YoY.

• Working capital release of R$73 million in 3Q24; net cash position of R$58 million at quarter-end.

Outlook and guidance

• Focus remains on sustainable, consistent growth, operational simplification, and disciplined capital allocation.

• Continued investment in brand innovation, international expansion, and efficiency improvements.

• Brazil operations expected to maintain strong profitability; international operations targeted for further stabilization and scale.